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Barclays sued by property developer over revaluation

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Property developer Vale Heritage Developments is suing Barclays for more than £200,000 after the lender overruled a valuation and ordered a site to be revalued.

According to papers filed at the High Court, Vale bought Pennant Farm in 2005 with a view to developing the site and backed by an initial £570,000 Barclays commercial loan. The loan was later increased to £980,000.

Estate agent Strutt & Parker, working for Vale, valued the farm at £1.05m in 2008.

Vale claims in 2009 Barclays thought the £1.05m was a misrepresentation. The lender then had the site revalued at £500,000 through former real estate servicing firm DTZ.

The court papers say: “The misrepresentation that Pennant Farm had a value of £500,000 was untrue, in that the market value of Pennant Farm in or around July 2009 was considerably in excess of £500,000.”

Vale points out that parts of the farm were sold for £430,000 in March and April 2010.

The company says it is suffering ongoing losses so does not have a final figure it wants from Barclays.

However, the firm is certain it wants more than £200,000 from the lender, the maximum threshold available in UK civil courts.

A Barclays spokesman says: “As this matter is subject to ongoing litigation, it would inappropriate for us to make any comment except to say that Barclays is defending the claim.”

Vale was unavailable for comment.

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