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p>A £2 million settlement has been awarded to a property investment company after it received an over valuation for a residential development site in Bexhill-on-Sea, East Sussex, Estates Gazette reported.
Economic Lifestyle Property sued Cluttons for a negligent valuation, the title stated, which led the company to agree to pay £8.5 million for a residential block, St James’ Heights, based on the report.
From this sum, the firm allegedly paid St James' Estates £3.1 million for the land and a further £5.4 million to Allum for the development work.
Estates Gazette further reported that Cluttons allegedly valued the property, which includes 51 flats, at £9.5 million, with a freehold reversion of £210,000 and gross freehold value of over £10 million.
However, two further valuations during 2007 revealed that the property was worth between £7.1 million and £7.7 million and as a result Cluttons had breached its duty of care to Economic Lifestyle Property.
The settlement was reached after Economic Lifestyle Property, located in the Channel Islands, discovered that a court claim for the damages caused by Cluttons – the valuation firm – would be unlikely to complete until October 2013.
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