Landowner forced to hand back £1.5m housing scheme deposit

a LANDOWNER who refused to hand back a £1.5 million deposit to a housebuilder after council chiefs threw out its plans for a new development in south-west Edinburgh has lost his bid to keep the cash.

Mactaggart & Mickel Homes wanted to build up to 19 new homes on a 2.3-acre site at Lanark Road West in Balerno's conservation area.

The firm agreed a deal with Charles Hunter to pay 3.5m for his land, which was occupied by two large houses, and handed over the massive deposit.

But when the city council denied permission for the project in February 2008, Mr Hunter refused to give back the money, claiming that the company broke its contract.

The company launched the legal action against Charles and Sandra Hunter, who claimed that the firm had surrendered its plans after being badly hit by the recession.

Now a judge has ruled that the pair were in "breach of contract" for keeping the funds, and allowed Mactaggart & Mickel Homes to both sell the land and seek the rest of the 1.5m in damages.

The firm and Mr Hunter had agreed a July 2007 deal that the 3.5m would be paid, minus the deposit, when planning approval had been given.

Under its terms, the housebuilder had to show it pursued the application with "all reasonable diligence", and was entitled to a refund of the deposit if they received an "unsatisfactory planning notice".

The original proposals called for 19 homes, including four detached houses, six townhouses and nine flats, to be built on the site at the junction of Lanark Road West and Bridge Road.

However, council planners ruled that the development would have a "detrimental impact upon the character of the Balerno Conservation Area" and rejected the move in June 2008.

Andrew Mickel, a director with the firm, told the court he met with Mr Hunter in December 2008 at his Edinburgh office and discussed the possibility of returning the land and seeking return of the deposit.

Mr Mickel said he recalled that Mr Hunter was "not minded to return the deposit" as he believed the site could be developed with the agreed number of homes.

Mr Hunter gave evidence that the company wanted to pull out of the deal as early as November 2008, partly to pay its workforce's wages.

But Lord Hodge found that the firm was continuing to seek planning approval for different proposals.

The firm's board finally decided to pull the plug on the project in February last year, and sought to recover the deposit from Mr Hunter.

Last August, the firm had the land valued and launched the legal bid to recover the difference between this valuation and the 1.5m it paid out.

A company spokeswoman told the Evening News: "Mactaggart & Mickel Homes is pleased with the ruling."

Overhaul for problem site

A DERELICT site in one of the city's plushest neighbourhoods which became a magnet for thieves and antisocial behaviour is set to be redeveloped.

A block of 20 townhouses and flats is planned for the corner of Whitehouse Loan and Newbattle Terrace.

It comes two months after the Evening News told how local residents complained that the site had been covered with 300 sq m of graffiti and had been targeted by looters stripping metal and flatstones from the former cottages.

John Lennie, member of the planning sub-committee of Merchiston Community Council, said of the plans by Foremost Developments: "It looks like an acceptable development. It's reasonable in size and scope even if it looks a bit modern. The proportionality, height and green space is fine so I can't understand why it's still pending council consideration.

Green councillor Alison Johnstone said: "It is important this is brought up to scratch." The three cottages were previously used by retired Church of Scotland employees but fell into disrepair.