What defects are associated with this type of period building?
Roof - Down
(movement & damp)
Leaning Chimneys - movement
Water Ingress on Roof & around windows and doors - damp
Cracking in the brickwork/movement - movement
Condensation from a lack of air flow - damp
Rising Damp (did not use DMC - damp proof membrane) - damp
Subsidence most noticeable around lintels - movement
Dry Rot - damp
What is the impact on value of the shower being in the kitchen?
- It would have a negative impact on value
- Incoming purchasers would have to remove the shower and create a shower room/bathroom to fit/suit modern standards
- Unmodernised throughout the property therefore, would have top undertake full refurbishment anyway
What are the negatives of using indices in your valuation?
- Based solely on their own research for example Savills Prime Central London Index
- Indices also are based upon data from too broad areas, and simplified asset types (e.g. detached, flat etc.) .
- Assets perform differently over time.
- These indices are released quarterly therefore, it is not an accurate representation of the current market
Can you please describe the factors at play of the market movement between 2020 and 2023?
2020 - COVID started & lockdowns
2021 - Lockdowns, start of Energy Crisis
2022 War in Ukraine started, Boris Johnson Resigned, Liz Truss Elected, Liz Truss Mini-Budget - crashing economy, Liz Truss Resigned, Rishi Sunak appointed PM
2023 - War continues, Cost of Living, Rising Inflation & Interest Rates
Why did you feel it was appropriate to use a sale transacted in Mar 21 when your valuation date was in Feb 23?
- I felt it was more appropriate to expand my timeline rather than expand the search area radius as I would have to make more adjustments to comparable as they would have been from different markets.
- I attached more weight to location
How does floor level impact value in these classic period buildings?
- Security/noise level/ease of access
- Ceiling height didn’t affect value on my building because it is purpose built block and not a period conversion
Are there any other circumstances when a Charities Act report is required apart from a disposal?
- No
(Purchase report aren’t charities act regulations)
CHECK
How has the landscape for investors of this type of property changed over the last year ?
- Mortgage rates gone up - more expensive for investors to borrow if
they need to therefore, less incentive making BTL investments less
profitable for them - apart from cash purchasers - Plans to scrap “no fault” Section 21 evictions, outlined in the Renters
Reform Bill, have prompted many buy-to-let investors to
consider their position. - Unmodernised properties are expensive to renovate as cost of
labour and materials increased
What is the definition of IPMS 2 Residential?
Similar to GIA.
Measuring the interior area of the building
Measured to the internal dominant face of the wall.
Measurement included but stated separately are for example covered galleries and balconies.
Talk to me about rental yields in PCL
- Average prime gross yields across London have risen significantly over the past two years
- Flats continued to see increasing returns as rental growth for these properties still outpaced capital value growth across all regions.
- Also, imbalance between supply and demand will continue to put upward pressure on rents.
What changes did the Charities Act 2022 introduce on 14th June 2023 to the selling, leasing or otherwise disposing of charity land?
- It widened the category of designated advisers who can provide
charities with advice on certain disposals. From a ‘designated
adviser’ as opposed to a ‘qualified surveyor’. - A trustee, officer or employee can provide advice on a disposal if
they meet the relevant requirements - Giving trustees discretion to decide how to advertise a proposed
disposal of charity land - Removing the requirement for charities to get Commission authority
to grant a residential lease to a charity employee for a short periodic
or fixed term tenancy
What is the Bank of England base rate currently?
5.25% (21 September 2023)
What is the difference between IPMS 2 and IPMS 3B?
IPMS 2 you measure the interior area of the building whereas IPMS 3B you are measuring the area in exclusive occupation, both measurements are measured to the Internal Dominant Face and finished surface.
Who could be a “designated adviser” under the Charities Act 2022?
- A fellow or professional associate of the RICS
- A fellow of the Central Association of Agricultural Valuers
- A member of NAEA (National Association of Estate Agents) Propertymark at fellow grade.
Also,
- a trustee, officer or employee can provide advice on a disposal if they meet the relevant requirements.
What are current mortgage rates looking like?
- The average cost of a two-year fixed rate deal across all borrower
types* now stands at 6.12%. - The average cost of a three-year fix stands at 5.98%,
- The average five-year fixed rate today is at 5.61%.
(Better.co.uk)
When was the Edwardian period?
1901-1914
When was the Georgian period?
1714–1837
What are some common features of Georgian homes?
Typically symmetrical
High ceilings
Sash windows
Fan lights: the doors often have these above them
What are some common features of Edwardian houses?
Edwardian design was influenced by other periods and styles:
Red brick
Wider, brighter rooms
Large windows
Simple internal decorative features
Edwardian homes tend to be shorter than equivalent Victorian residences
Off road: Edwardian houses were set back from the road
When was 67 Walnut Tree Walk built?
1903
Why was a valuation under the charities act required?
My Client is the “Walcot Foundation” who is a charity
If there had been a flat that had sold in the subject building at £375,000, how might that have influenced your opinion of market value?
- Would depend on the floor level of the property
- Size (lot of weight allocated to the size of the property)
- Condition
- Could have brought up the market value of the property
If the costs had been very minimal to the bring the property up to a modernised standard, how might that have changed the advise that you might have given your client?
- If it had been cheaper to modernise the property and there was a margin decent enough for my client to make a profit, I would advise my client to renovate the property, advise them of the potential market value of the property when renovated
Why did you decide that £325k was the asking price that you should list the property at?
CHECK WITH JOHN
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