How a £32.5 Million Moth Misrepresentation Impacts Property Sales

A recent High Court ruling has highlighted the serious consequences that can follow when sellers fail to disclose known issues with a property. The case serves as a valuable reminder for both buyers and sellers of their respective rights and responsibilities during the conveyancing process.

The background to the case

In May 2019, Ms Iya Patarkatsishvili and Dr Yevhen Hunyak purchased Horbury Villa, a £32.5 million mansion in Ladbroke Grove. Soon after moving in, they discovered a significant moth infestation affecting numerous areas of the property.

The couple reported finding moths in wine glasses, on personal items such as toothbrushes, and embedded in clothing—some of which had to be thrown away.

The seller, Mr William Woodward-Fisher, had previously confirmed through the pre-contract enquiries that he was not aware of any vermin issues or hidden defects. However, it later emerged that the seller had commissioned two pest control reports, issued before the sale, which clearly identified a severe infestation.

In court, Mr Woodward-Fisher claimed he had also been advised that moths did not constitute vermin.

The court’s decision

The High Court found that Mr Woodward-Fisher had made fraudulent misrepresentations. As a result, the judge ordered recission of the sale contract, which means the couple were to hand the property back to the seller and the full purchase price repaid, along with:

• Substantial damages, including the full cost of removing the infestation
• Stamp Duty Land Tax reimbursement
• £15,000 for clothing that was ruined

The court also deducted a sum to account for the time the couple lived in the property before taking legal action.

Our advice to sellers

This case highlights the importance of full and honest disclosure during the entire selling process. Sellers are required to complete enquiry forms accurately and to declare any known issues that could influence a buyer’s decision.

Attempting to conceal defects, even with the hope that they might not be considered serious, can lead to costly consequences.

Our advice to buyers

This case is a reminder that, while the principle of ‘buyer beware’ remains a key element of property transactions, it is not a defence for dishonest behaviour.

If a seller intentionally provides misleading information or omits known defects, they can be held legally and financially responsible. Therefore, buyers are advised to:

• Commission detailed surveys before exchange;
• Review all reports thoroughly; and
• Carry out regular inspections of the property.

While this ruling doesn’t rewrite the law, it does serve as a clear warning: honesty and transparency are not optional in residential property transactions. When buyers are misled, courts are prepared to intervene.

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