Housebuilder sues off-plan customers
Housebuilder Berkeley Group is suing former customers who defaulted on contracts to buy off-plan apartments - signed at the peak of the market - in an action that could run to tens of millions of pounds.
Legal action: The Berkeley Group is to sue a group who defaulted on off-plan homes
A group, called the Berkeley Homes Collective, has been set up and has 93 members who are contesting the builder's response to their defaults.
A spokesman for the firm said the group 'empathised' with their plight, but said there was nothing it could do.
He said Berkeley had written to the government to urge it to force the banks to start lending again in order to prevent similar situations.
'Berkeley has done everything it said it would. The thing that has changed is their (customers') ability to get financing, and that is not something that Berkeley can do,' the spokesman added.
Berkeley (up 3.5p at 935p) declined to say how many people it was pursuing, or how much it was seeking from the legal action.
But, 40 of the action group's members claim to have received letters informing them of Berkeley's intent to sue - their apartments ranged from about £200,000 to £550,000 in price.
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