Statutory Valuation/STATUTORY VALUATIONS COURSE WORK

ANDREW YOUENS
This work represents 25% of the marks and must be handed in with Alan Hardys work..

It is not a good day at Floggitt and Fleessam Chartered Surveyors. The senior partner, Charles Protimeter is in a bad mood. His graduate assistant, Willie Floggitt BSc Est Man (University of Westminster), grandson of the founder of the firm, is off sick with an attack of dry rot and their most valued clients, HOSPESTAN INVESTMENTS (H.I), have acquired a large Edwardian block of flats from the receivers of Blenkinsop Holdings (in voluntary liquidation). Cameron House is on five floors comprising the following;

Fifth floor; 12 x 1 bed flats, 5 x 2 bed flats.

Forth floor; 12 x 1 bed flats, 5 x 2 bed flats.

Third floor; 12 x 3 bed flats.

Second floor; 12 x 3 bed flats.

First floor; 12 x 3 bed flats.

Ground floor; 12 x 1 bed flats, 5 x 2 bed flats.

Basement; 600 square metres of storage; could be converted subject to normal approvals being obtained.

All of the 2 and 3 bedroom flats are let to rent controlled tenants who have the current fair rents agreed by the rent officer 4 years ago of;
3 bedrooms £150 per week inclusive,
2 bedrooms £100 per week inclusive.

Similar flats let under AST’s are being agreed at £700 and £800 per week respectively.

All of the 1 bedroom flats are let on Assured Shorthold Tenancies at a current rent of
£2500 per calendar month inclusive. The general level of rents in the area for similar properties on AST’s is circa £1200 exclusive.

Mrs Cymbal the tenant of Flat 17 (3 bed) and Bert Smedley the tenant of Flat 15 (2 bed) are not happy as the landlords have applied to the Rent Assessment Committee (RAC) to have the fair rent increased by an average of 20 % as they (H.I.) have recently spent
£ 880,000 on exterior repairs and the installation of a new carpet to the common parts.

JocastaGrimeley-Ffiennes is Chairwoman of the tenants association, a practising Barrister and a formidable opponent. She is of the opinion that the rents for all of the one bedroom flats is excessive and is referring the matter to the RAC for their determination of same. She has a 2 bedroom flat held on a 99 year lease from 24/4/1978, with a ground rent of £300 doubling every 33 years.

The prevailing market values for well-modernised flats in well-modernised blocks are as follows;
3 bedroom circa £ 1,750,000
2 bedroom circa £ 1,250,000
1 bedroom circa £ 795,000

You must therefore produce:-

1 A enfranchisement valuation for the flat of JocastaGrimeley-Ffiennes
2 The valuation of the freehold interest as at the hand in date.

MAKE ANY OTHER ASSUMPTIONS THAT YOUR REQUIRE; THESE MUST BE STATED.

BOTH REPORTS MUST BE PRODUCED AND SUBMITTED TOGETHER IN ACCORDANCE WITH THE COURSE HANDBOOK, BY 11/1/16

4PRO 504

STATUTORY VALUATIONS COURSE WORK

ANDREW YOUENS
Your completed assignment is to be handed in at the undergraduate office by 6:00pm on 11/1/16 at the latest. This assessment of accounts for 25 per cent of the total assessment for the module.

Students who are hand in work later will be penalised in the marking, which will form part of the final assessment for this module.

You are reminded to retain a copy of your coursework submission in the event that the original goes missing.

Performance criteria are;

The legal principles involved
Statements of assumptions
Explanatory adaptation of calculations
The layout and logical progression
Mathematical accuracy
Conclusions reached.

Self-assessment.

Using the of the performance criteria above, and locate what you consider to be an appropriate percentage mark for your work. Bear in mind and that a basic pass is only 40 per cent.

Name; Self assessment %=
Particular problems encountered;

Current Position Market
floors beds type numberof beds rent per week rent per month unit rent by month rent p.a. Capital value per flat total value market rent per week rent per month unit market rent per annum
5 3 0 150 650 0 0 1750000 0 800 3467 0
5 2 5 100 433 2167 26000 1250000 6250000 700 3033 182000
5 1 12 577 2500 30000 360000 795000 9540000 300 1300 187200
4 3 0 150 650 0 0 1750000 0 800 3467 0
4 2 5 100 433 2167 26000 1250000 6250000 700 3033 182000
4 1 12 577 2500 30000 360000 795000 9540000 300 1300 187200
3 3 12 150 650 7800 93600 1750000 21000000 800 3467 499200
3 2 0 100 433 0 0 1250000 0 700 3033 0
3 1 0 577 2500 0 0 795000 0 300 1300 0
2 3 12 150 650 7800 93600 1750000 21000000 800 3467 499200
2 2 0 100 433 0 0 1250000 0 700 3033 0
2 1 0 577 2500 0 0 795000 0 300 1300 0
1 3 12 150 650 7800 93600 1750000 21000000 800 3467 499200
1 2 0 100 433 0 0 1250000 0 700 3033 0
1 1 0 577 2500 0 0 795000 0 300 1300 0
ground 3 0 150 650 0 0 1750000 0 800 3467 0
ground 2 5 100 433 2167 26000 1250000 6250000 700 3033 182000
ground 1 12 577 2500 30000 360000 795000 9540000 300 1300 187200
basement 3 0 0 0 0 0 1750000 0 800 3467 0
basement 2 0 0 0 0 0 1250000 0 700 3033 0
basement 1 0 0 0 0 0 795000 0 300 1300 0
119,900 1,438,800 110,370,000 2,605,200 45%