Valuation – Level 3

Question 1

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

Answer 1

• 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.

Question 2

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

Answer 2

• 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

Question 3

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

Answer 3

• 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.

Question 4

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

Answer 4

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

Question 5

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

Answer 5

• 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.

Question 6

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

Answer 6

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

Question 7

• 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?

Answer 7

• 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.

Question 8

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

Answer 8

• 27th July 2020

Question 9

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

Answer 9

• 7th July 2020

Question 10

What were the comparables for 208a Trundleys Road?

What was their GIA sizes?

When did they sell?

Answer 10

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.