Valuation – Level 3 Flashcards
Explain your valuation of Flat 44, Research House, Fraser Road, Greenford, UB6 7AQ.
- I carried out a Market Value (VPS4) and (UK VPGA 12.7) of the Leasehold Interest for equity release from Target.
- I inspected the property which was a converted second floor 1 bed flat within a three-storey building. I measured in accordance with IPMS 3B Residential. The lease was 250 years from 2018 with a ground rent of £300 pa and a service charge of £1,200 pa.
- I carried out the valuation with the special assumption that (VPS4 9.5) was included that it was assumed the property has vacant possession
- I used the comparative method of valuation.
- The subject property has been purchased within two years and time adjustments were made.
- I advised the client that my opinion of market value was £317,850 considering all the comparables available and adjustments made for time and size.
Explain your Valuation of the Homebuyers Report of 8 Southridge Place, London, SW20 8JQ – 7th July 2020?
- I carried out a Homebuyers Report and Valuation on a four-bedroom mid terraced town house built in 1989.
- I inspected the property and provided a report and valuation. The property was measured in accordance with IPMS 3B Residential.
- The property last sold on 12th May 2015 and had a garage. Since then, the garage has been converted to living accommodation. My client agreed a purchase price of £1,400,000.
- The floor area of the property in 2015 was 128m2 and the living floor area had increased to 151m2.
- Comparables were hard to come by for the subject property.
- I analysed all the data including the change to the subject property and informed the client that based on the evidence I felt he was paying too much for the property and the valuation was considerably lower at £1,200,000.
- Research has shown that my client reduced his purchase price from £1,400,000 to £1,350,000 which completed on 19th August 2020 which was against the valuation advice provided
• Flat 44, Research House: Talk me through your advice to client?
- I analysed the sales within the block as well as analysed the dates that they were sold to the most recent values as stated by land registry.
- Since the property has been purchased data indicated that there had been a decrease in value of 2.2% for flats within the borough.
- Therefore, I reduced the value of the purchase in 2018 by 2.2% to 317,850.
• 8 Southridge Place, how did you factor in the garage being converted within your valuation?
- I was able to locate an old floor plan with the old GIA size which was less than my measurement.
• Explain the structural advice you gave and your reasoning for Flat A, 206 Trudeleys Road?
- The bay movement was due to little or no foundations to this location. I cannot guarantee that it will not move in the future and the only way of telling this is to monitor it over a period of time.
• What in your opinion, therefore, was the source of the cracking?
- The source of the cracking was a combination of the change in the lintels to both the door and window above.
• Why were the comparables hard to come by for 8 Southridge Place? How did you account for this in your rationale and advice to client?
- Comparables were not similar in style.
- They were similar as being Town Houses.
- However, My opinion was that the subject property which had sold within the last 3 years was the best comparable.
- This was because I was able to increase the GIA to now accommodate the converted garage as well as increase the value per m2 to today prices.
When did you carry out the valuation of Flat 44, Research House?
- 27th July 2020
When did you carry out the homebuyers report and valuation for 8 Southridge Place?
- 7th July 2020
What were the comparables for 208a Trundleys Road?
What was their GIA sizes?
When did they sell?
- 70a Gosterwood Street - 65m2 - Sold May 2020
- 37b Billington Road - 55m2 - Sold June 2020
- 81c Arbuthnot Road - 73m2 - Sold August 2020
- 208 Trundleys Road - 56m2
- 18b Egmont Street - 30th October - 68m2 on floor plan EPC 59m2 Seller offered to pay stamp duty above £510,000 - Sold 30th October 2020.
