Owners of student accommodation in Arndale House, Liverpool are bracing themselves for possible closure of the building due to cladding issues and their rental income streams flowing into the River Mersey.
They may not realise that the apartments sold to them back in 2013 were, according to FSMA 2000 s235, all part of a Collective Investment Scheme which was unregulated and illegal. As a result, all their titles are at worst voidable, and they are entitled to claim a full refund from X1, the developer of the building and illegal scheme.
It will be interesting to see if X1 Developments is capable of refunding c£9-10m to investors but if not, the leaseholders do have an alternative route to recovery elsewhere.
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