Homebuyers lose life savings on luxury flats that were never built

HUNDREDS of home-buyers have lost their life savings on luxury flats that were never built.

Some 320 potential homeowners paid £33million overall to Pinnacle Alliance, a company behind a new development in Manchester – but just £2 million of their investment remains.

Gov.org

An impression of the the Pinnacle Angelgate development near Manchester.[/caption]

Brochures for the project suggested the scheme would complete by the end of 2017 but the Angelgate plot is still an abandoned built site today.

The Daily Mail spoke to primary school teacher Gabriel Ward, 54, who saved just enough to afford a 120,000 flat in the new build is one of the investors who lost his life savings in the scam.

Mr Ward paid a deposit of £96,000, leaving just enough cash to cover the remaining £24,000 when it was due on completion.

He told the Mail: “Pinnacle started ramping up the pressure through the solicitor they referred me to.”

@angelgatebuyers / Twitter

The Pinnacle Develoment pictures today[/caption]

“They were quite threatening and kept pushing me to transfer the sum. I wasn’t worried that they were trying to defraud me at that stage.”

Pinnacle gave an update on its projects in a statement on its website– including the Angelgate scheme for 344 posh flats.

It claims PHD1, the firm of builders which was responsible for carrying out the project, undervalued its cost by £20 million.

Only groundworks had been carried out before PHD1, went under in 2015.

Mr Ward said, who has been in touch with other investors who lost all their money in the deal said: “I was recovering from six rounds of chemotherapy and had been in a very dark frame of mind because of my illness.

“I felt such shame. I’ve never had a lot of money to my name, so I’m devastated to have fallen for their appalling tactics.”

In 2016, a cowboy builder was jailed after he ripped off customers to the tune of £170,000 and left one of his victim’s homes “virtually uninhabitable”.

The Sun Online previously spoke to a couple who bought a £290,000 house that started falling apart just days after they moved in.

We also reported how newlyweds were unable to sell their home due to a legal catch that means their ground rent doubles every decade.


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https://www.thesun.co.uk/money/6635456/homebuyers-lose-life-savings-on-luxury-flats-that-were-never-built/