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Flashcards in Valuation – Level 3 Deck (10)
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1
Q

Explain your valuation of Flat 44, Research House, Fraser Road, Greenford, UB6 7AQ.

A
  • 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.
2
Q

Explain your Valuation of the Homebuyers Report of 8 Southridge Place, London, SW20 8JQ – 7th July 2020?

A
  • 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
3
Q

• Flat 44, Research House: Talk me through your advice to client?

A
  • 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.
4
Q

• 8 Southridge Place, how did you factor in the garage being converted within your valuation?

A
  • I was able to locate an old floor plan with the old GIA size which was less than my measurement.
5
Q

• Explain the structural advice you gave and your reasoning for Flat A, 206 Trudeleys Road?

A
  • 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.
6
Q

• What in your opinion, therefore, was the source of the cracking?

A
  • The source of the cracking was a combination of the change in the lintels to both the door and window above.
7
Q

• 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?

A
  • 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.
8
Q

When did you carry out the valuation of Flat 44, Research House?

A
  • 27th July 2020
9
Q

When did you carry out the homebuyers report and valuation for 8 Southridge Place?

A
  • 7th July 2020
10
Q

What were the comparables for 208a Trundleys Road?

What was their GIA sizes?

When did they sell?

A
  1. 70a Gosterwood Street - 65m2 - Sold May 2020
  2. 37b Billington Road - 55m2 - Sold June 2020
  3. 81c Arbuthnot Road - 73m2 - Sold August 2020
  4. 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.