Flaxby Development
Flaxby development

Developer enters liquidation casting doubt over 2,500 new homes near Knaresborough

22 July 2015

York developer Skelwith has said that they have entered provisional liquidation.

The developer had plans to deliver up 2,500 new homes on the site near to Knaresborough, at the previous Flaxby golf course, as well as a hotel, as part of a revised masterplan for the site.

Skelwith has already invested heavily in infrastructure, completing earlier this year a new £4m roundabout for the site.

Howver, the Skelwith group is in a legal battle with local farmers, the Armstrong family, developers, the Ward family and their related companies over the site.

In 2008, a 280 acre area of land was sold from the Armstrongs to Skelwith for £7m.

In 2010, consent was giving to build a hotel on the site and Skelwith secured a number of investors for the hotel.

Flaxby-Hotel-BBA-Image-2013 (1)
Artistic impression of the 2010 proposed hotel

The Armstrongs are looking to sell the land to the Ward family to recover what they say is unpaid money to them and that the land has been undervalued. Skelwith have blocked this sale at the High Courts.

The Armstongs and Wards are continuing to seek a Court order to allow the sale of the land to go ahead.

A Skelwith spokesperson commented:

Because of the pressure and resources taken up with the litigation on the Flaxby Golf course site, one Skelwith company, Skelwith Leisure, has gone into provisional liquidation.

We are working with the liquidator to resolve outstanding issues. The current legal dispute and planning process will continue.

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