Internet land banking companies wound up

Three companies involved in selling plots of agricultural land to the public on the spurious claim they had residential potential have been wound up in the High Court following an investigation by the Companies Investigation Branch of the Insolvency Service.

Townfield Land Investments Ltd acquired agricultural land near Southwold in Suffolk under an option agreement with a local farmer. The land was sub-divided into plots of 2,000sq ft and then marketed to the public by Libertas Land. Also involved was Southwold Site Management Ltd.

In fact, as an investigation by the CIB established, the site in question was inherently unsuitable for housing as it was located within an Area of Outstanding Natural Beauty and in part of the Heritage Coast.

To compound the unsuitability of the site for housing its southern part was in a flood risk area while part was designated as a Site of Special Scientific Interest. Additionally the land itself suffered from shrinking and stability problems.

The companies sold plots using the internet to over 250 members of the public at some 50 times their agricultural value.

Registrar Rawson in the High Court said that this was a clear case where all three companies needed to be wound up in the public interest.

Read the Insolvency Service press release here.

Roger Milne

5 July 2007