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News Story

Savills has to pay up after '£30m' house court case

Wednesday 2nd December 2009

Savills has had to apologise to a client whose home was said to be worth £30m but was sold for £2.9m. The firm has also had to pay Barry McKay an undisclosed financial settlement.

Mr McKay agreed to sell the property, Tresanton, in wealthy Sunningdale, Berkshire, for £2.9m on the basis that it did not go to a developer, who had converted a neighbouring property into 34 flats, costing £1.7m each. Buyers of the apartments included Sir Cliff Richard.

However, after the sale went through, he discovered that the house had indeed been bought by a company, Rork's Ltd, owned by the neighbouring property's developer, John Morris.

Subsequently, a surveyor valued Tresanton as being worth up to £30m for development purposes.

Mr McKay then sued Savills. He originally demanded £3m in damages, but then increased his claim to £6.1m after planning permission was granted.

He claimed that the former head of the Sunningdale branch of Savills, Michael Ball, had disguised the involvement of the purchaser. He said he had twice asked Mr Ball – who subsequently quit Savills – whether Mr Morris was behind the £2.9m bid to buy the property, but was told that this was not the case.

Yesterday, in the High Court, it was revealed that Mr McKay had accepted the apology and a pay-out from Savills.

He said: "I recognise that Savills has been the victim of a rogue employee and I know they are a firm of high professional standards which I would be happy to use again."

Jeremy Stuart-Smith, Savills' barrister, said: "Savills greatly regrets the conduct which led to this claim and wishes to make an open and unreserved apology for the breach of duty to which Mr McKay was subjected."

Savills has always denied that the property could have fetched more than £2.9m. The firm had already handed back its £50,000 commission.

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Posted By Wooden Top on Thursday 3rd December 2009 10:13:09

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What I find interesting is how Savills can justify the commission claimed, regardless of the vendor agreeing!

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Posted By oh lord on Wednesday 2nd December 2009 18:35:38

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dipstick of the year indeed, if he was hell bent on the house not being sold as a potential development site then simply put a restrictive covenant on it, plus the 'unconditional' price without detailed planning and the price with detailed planning are two very different things

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Posted By Mr E Man on Wednesday 2nd December 2009 14:07:09

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Rogue agent or Savilles blinkered by the £50,000 commission. Yes the agent did tell lies but was he acting on his own. And Mr McKay sorry but you earn the dipstick of the year award if you had agreed to sell to the developer no doubt Savilles would have negotiated a figure far in excess of what he got. Mr McKay received the figure which he restricted Savilles conditions of marketing to, and now hes griping because hes found out the unrestricted market figure for the development.

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Posted By paul on Wednesday 2nd December 2009 10:41:19

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10.40 and already 2,617 views.
Come on - who else was hoping to read that Savills had been hit for £ 30 m? :-)

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Posted By Simon on Wednesday 2nd December 2009 10:40:33

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Sweet... Nice one Mike!

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Editorial Contact Details - Rosalind Renshaw | rosalind.renshaw@estateagenttoday.co.uk | 01252 843 566.