Buy to Let Investors Launch Claims against Dylan Harvey

Another claim against Dylan Harvey, Manchester-based property developer and broker was launched by a third group of buy to let investors. The investors have spent £100,000 on deposits for ten flats, which they fear might never be built, and that is they have hired solicitors from Manchester-based law firm Heatons LLP, who have issued proceedings on the investors' behalf. The proceedings are made against Dylan Harvey Residential Ltd., the developer who secured a planning permission for the Clippers Quay apartment project, located on Trafford Road in Salford Quays last May but has not yet started the construction. Toby Whittaker, the managing director of Dylan Harvey Residential Ltd. Said that the credit crunch has hit the company real hard, it had its debts and bills to pay, so the company has no opportunity to pay the deposits back to investors. However, he added the company will be happy to switch investors' deposits to other schemes. The company acquired £6.5 million in deposits from the Clippers Quay apartment project (5% of the average asking price of £200,000 per apartment). All but 100 deposits have been transferred to other schemes, according to Whittaker. He also claimed that the company is a joint venture with Manchester-based Ask (Ask Dylan Harvey Ltd), however there is no written record of the partnership. Ask said the Clippers Quay project is simply postponed due to unfavourable market conditions, but will be revisited when the situation improves. There is also evidence that the investors might pursue Toby Whittaker personally, because they believe the situation is more a matter of principle than a matter of money. Lawyers in n Manchester and Birmingham are preparing claims on behalf of 2 groups of depositors who seek to return a total of £7 million.