Shop IHT. Can you explain the construction and figures used
Georgian build 4 storey shop with a white render and traditional shop frontage which included a return frontage leading down a side street
Lease terms were upward only and as market rent did not suggest an increase I had to capitalise the rental income by an all risks yield of 6.5% giving a capital value of £2,400,000
Describe the flat for IHT with a short lease
- 70’s brick build apartments with a white render to part of the property located in a prime area of Henley next to the river side
- Lease length of 65 years graph of relativity showed a 15% reduction in value
- Was able to find comparable sales of similar lease lengths
- If not marriage value would need to be included
- Properties with under 80 years left have to pay the landlord part of the profit on marriage value for extending the lease
IHT semi-detached dilapidation case. Describe the property and how repairs were reflected
- Semi-detached post war construction with a brick build peach render and a bay window extending from the ground to first floor
- £20,000 reduction to reflect costs of repairs. This advice was sought by an experienced surveyor who has dealt with property dilapidations before and had an idea of potential costings
- Final agreed value for the property was £310,000
IHT case disregarding improvements. What was the difference in value
- Improvements gave an uplifted figure of circa £50,000
* Refurbished properties gave a figure of £1,000,000 whilst untouched 50’s build properties showed figures of £950,000
Apartments prudent lotting. Can you describe the property and give the difference in figures arrived at
Stone build Victorian property with two turrets with white rendering and timber boarding to the top floor
Executors figure £971,000
Prudent figure £1,700,000
Car park. Why did you follow your approach and what yield did you use
- Comp sales showed a 7.22% Net initial yield
- Planning only acquired for parking and unlikely a change of use due to the locality. Also very strong covenant on the site so no need to change or risk it
- Land was leased by supermarket who previously owned the site on a very long lease of 999 years
- 10 yearly reviews with the rent to be reduced to a peppercorn on 2071
