Frequently asked questions (FAQs)

Land Heritage (UK) Limited (in Liquidation)

Question

I had purchased a plot and had it registered with the Land Registry, is this plot mine?

Answer

If investors are in possession of the land registry certificate, then the plot of land belongs to the investors ("the Plot Holders"). They have the right to keep their land if they so wish.

Question

I had paid for a plot and had the documents signed but I have not received a Land Registry certificate, is this plot mine?

Answer

If the form TP1 (the land transfer) was signed and dated by the Company, yes. Plot Holders have the right to keep their land if they so wish.

Question

By keeping the plot of land will I be able to claim a dividend in the liquidation

Answer

No. The claim that will be made in the liquidation relates to a refund of the money that was paid for the plot as part of an unwinding of that transaction. This is available due to the regulatory issues arising from the companies operations. Plot Holders who wish to participate in any distribution from the assets of the company must, therefore, transfer their land holdings and in return will rank as an unsecured creditor in the Liquidation for the original sum which they paid for their plot.If a Plot Holder does not wish to transfer his or her land then he /she will be able to retain the land but will not be permitted to participate in any distribution made to the creditors of the company.

Question

What do I need to do to transfer my land to the liquidators?

Answer

First the liquidators need to know how many Plot Holders want to transfer their land and claim in the liquidation as an unsecured creditor. Please sign the form attached to the letter dated 15 July 2008 and return it to the liquidators as soon as possible. The liquidators will then prepare the formal documents relating to the transfer and send them to those who have indicated they wish to transfer their land.

Question

What will happen to the plots of land once it has been transferred to the Liquidators

Answer

The Liquidators intentions are for the entire Sites to be placed on the open marketplace for sale. Subject to the participation of Plot Holders and the successful sale of the Sites, it is hoped this will provide creditors with a potential further distribution of a dividend

Question

What issues should I consider when deciding whether I should transfer the land?

Answer

Plot Holders should bear in mind that there are serious issues in relation to the right of access across the surrounding land for each of the individual plots. The Sites are divided into numerous plots which were sold to the Plot Holders. As the plots were not intended for individual use there is a potential problem with access rights over the surrounding area to get to the individual plot. This will cause difficulty in any sale of the plots and will have an adverse effect on the value of each plot on any potential individual sale. Although no valuation advice has been obtained and the Liquidators are not able to advise individual Plot Holders in relation to this it is their view the individual plots will have very little value.

Plot Holders should also consider the prospect of planning permission now being granted on their individual plot. No planning permission has been granted by the local authorities at present or likely to be granted in the near future. While the liquidators are not able to advise individual Plot Holders in relation to this, for the purpose of performing their functions in the liquidation, the liquidators have come to the view that there is no real prospect of planning permission being granted over the land as a whole.

Question

Will I be able to make a claim under the Buy Back Agreement?

Answer

As the Company is now in Liquidation, the Buy Back Agreement is now void. Investors have the right to claim as unsecured creditors for the purchase price of their plot in exchange for the transfer of ownership of the purchased land to the Company, plus a claim for payment of costs and expenses incurred relating to the purchase. They will be entitled to participate in any dividend declared by the Liquidation.

Question

I have paid the full amount and have had the contracts signed, however, the purchase was never completed. What is my position?

Answer

There may be some investors whose purchase of land did not complete prior to the company receiving the notice from the FSA in July 2006 as well as some who had paid the purchase price or paid a deposit for the plots of land. It will not be possible for the Liquidators to complete the conveyance.

These investors will have a claim against the Company for the sums paid and will rank as unsecured creditors in the Liquidation. This entitles them to make a claim and participate in any dividend declared by the Liquidation.

Please complete the attached proof of debt form with supporting documents (if you have not done so already) and forward to the liquidator as soon as practical.

Question

I have lodged a proof of debt form, do I need to complete it again?

Answer

Please note that if you have already completed your proof of debt and forwarded it to the liquidator, it has been filed accordingly and there is no need to resend a proof of debt.

Question

What supporting documents do I need to furnish you?

Answer

Please note that the following documents are required to support your claim.

- Proof of purchase (bank statements, confirmation letter)

- Signed copy of the contract and form TP1 (the land transfer)

- Land Registry certificate (if provided)

Question

How much money will I get if I agree to transfer my plot back to the Company?

Answer

The Liquidators cannot confirm how much each Plot Holder will recover at this stage. Each Plot Holder who transfers their plot will rank as an unsecured creditor and each unsecured creditor will be paid a percentage of their total claim. The percentage will depend upon the total value of the claims received and the total amount available for distribution.

Question

Why do I need to sign my plot over before knowing how much money I will get in return?

Answer

Question

How do I know that I will receive the money that I am entitled to if I transfer my plot back?

Answer

The Liquidators are bound by professional conduct rules and regulations and would be in breach of these if they did not make the dividend payments.

Question

How long will this all take?

Answer

Pursuant to Rule 11.2 of the Insolvency Rules 1986, I give notice that the date by which the enclosed proof of debt form may be lodged with me, for the purposes of proving in the liquidation, is 30 September 2008. If your claim is not received by the date stated, I shall exclude you for the purposes of payment of the first interim dividend, which will be made within 4 months of the final date for proving.

Restructuring & recovery

Frequently asked questions (FAQs)

Land Heritage (UK) Limited (in Liquidation)

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Publications

News