Which was your best comparable for market rent and market value? (details of both)
Market rent- 145 Northcote Road- rented in June for £70,000- £135 ITZA- similar corner unit
Market Value - 199 New Kings Road - Rented in June
Why did you not consider any transacted Northcote Road properties in your market value?
Most recent transactions were to the north of the property which reflected a different rental tone
None within the last 6 months
How would the upcoming budget affect investors decision?
Investor uncertainty on upcoming changes. There are speculations on business rate relief to smaller businesses
Define NIA
Net internal area
Includes - useable space for occupier e.g private kitchen, internal corridor etc
Excludes - stairs and lifts, toilets and plant, common shared area
Why did you not measure the property on a GIA or IPMS basis
What was the service agreement in place?
What were your initial, equivalent and reversionary yields?
Net initial - 4.6%
Reversionary yield - 6.2%
Equivalent yield - 6%
What are the SWOTs of your subject?
Strength - corner plot with good visibility, in an affluent submarket in london
Weakness- internal layout with corridor may determine some investors, further south of the prime pitch of northcote road
Oppurtunity- Could be occupied by a range of occupiers from local to national businesses
Threat - global market uncertainty
What were the terms of the loan?
£930,000
How did you calculate the fee?
Define market rent and market value
Market Rent:
The estimated amount an interest in property should be leased on the valuation date between a willing lessor and lessee on appropriate lease terms in an arms length transaction with proper marketing where parties have acted knowledgably, prudently and without compulsion
Market Value:
The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and seller in an arms length transaction after proper marketing and where parties have acted knowledgably, prudently and without compulsion.
