Wednesday, June 4, 2008

Land bank “scheme” exposed and closed

Illegal 'landbank' scheme closed

UKLI, which had its main office in Berkeley Square in central London, was the UK's largest landbanking company. It had bought and sold about 5,000 plots of farm land to its investors at a substantial mark-up. The company claimed that the land would subsequently get planning permission, enabling the plots to be sold again, at an even greater profit, to developers. UKLI, which had its main office in Berkeley Square in central London, was the UK's largest landbanking company. It had bought and sold about 5,000 plots of farm land to its investors at a substantial mark-up. The company claimed that the land would subsequently get planning permission, enabling the plots to be sold again, at an even greater profit, to developers.

Posted by doomwatch @ 12:12 PM (991 views)
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9 thoughts on “Land bank “scheme” exposed and closed

  • I thought farm land had shot up in value massively? Presumably the investors have made money anyway?

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  • Cartimandua51 says:

    Not when the plot is about 100ft x 50 ft and is in the middle of 50 others!

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  • Farm land has gone up from about £2k/acre to £7k/acre (depending on location/fertility etc). That is still massively cheaper than building land.

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  • This has been going on for years. Why is it only now that the FSA have done something about it?

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  • “I thought farm land had shot up in value massively? Presumably the investors have made money anyway?”

    Not really – from the article I read (see they main forum) they got their small .02 acre parcels of land for £5,000 each (the four acre plot cost the scammer £30,000, £7,500 per acre). That relative cost per acre to the buyers was £250,000 per acre.

    Regards,

    Q

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  • Quoth – cheers for the info. Sounds a bit like the people who bought all those northern BTL flats – if they’d bothered to check, they would have found that they could buy a house for half the price of a new-build flat. So with these land investors, if they’d bothered to check how much farmland really sells for then they could have saved themselves a packet.

    Whenever somebody gives you a hard sell, shop around for another quote.

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  • planning4acrash says:

    Remember that many of these plots have planning permission or are capable of being developed. So, look at more than the land price, and note that many will have been bought long before the boom and crash.

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  • http://www.bbc.co.uk/insideout/southeast/series5/field_dreams_land_scam.shtml

    They were charging between £24k and £48k per acre back in 2004, and paying around £2k per acre.
    You are not going to get that back even at today’s higher prices. Also, a farmer isn’t going to be interested in a building plot sized bit of land at any price – it is too small to get the machinery round it.

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  • I am surprised that FSA was aware of the illegal activity since Mar’06 and still did not shut it until now

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