Property firm wins deposit case

http://news.bbc.co.uk/go/rss/-/1/hi/northern_ireland/8516955.stm

Version 0 of 1.

A property company has won a legal battle with a buyer seeking to win back the deposit he put down on an apartment in a luxury new Belfast complex.

The case taken against Big Picture Developments was dismissed by consent at the High Court.

The apartment is at the Bakery, on the site of the former Ormeau bakery.

The settlement involves an agreement for the plaintiff, Stephen McKenna, to pay the £391,000 balance on his purchase in full within six weeks.

Unlike other cases brought over the development, it was the first in which Big Picture Developments - whose partners include Policing Board chairman Barry Gilligan - was named as defendant.

Specific performance of the contract to buy the flat is to take place by 29 March, Mr Justice Deeny was told.

Another three lead cases brought by the company over uncompleted contracts on some of the 156 high-specification apartments were also resolved on Monday.

Writs were issued last year against dozens of clients who booked flats at the showpiece south Belfast development.

Since then, however, the number of outstanding cases has steadily diminished as purchases were pushed through.

The case is one of a number of legal actions which focuses on property bought at the height of Northern Ireland's housing boom.

Apartments at the Bakery were snapped up when they went on sale in 2007.

The development was built with a unique courtyard specially designed by celebrity gardener Diarmuid Gavin. Other features include a glass bridge and gym.

But plummeting property prices over the last two years have been blamed for the difficulties which led to legal action being undertaken.

Many homes built at the peak of the boom are now worth less than the original selling price, leaving some banks reluctant to agree mortgages.

The situation means those unable to find the money for property they agreed to could lose big deposits or face a claim for the total cost.

Following the latest settlements, a spokesman for Big Picture Developments said: "We continue to be pleased with the progress being made in buyers fulfilling their contractual obligations for apartments at the Ormeau Bakery."