Capital Value Surveyors Limited

🪱🐦 Now that the days are getting longer, pre-6am inspections are back on the cards for Capital Value Surveyors Limited . When access is possible, like it was for this newly created Berkshire HMO, we will get out as early as possible. 🚗less traffic on the road 📑back at desk before the working day for most starts, so we get a slight headstart on report preparation If you have urgent Valuation requirements, get in touch with us, we will be able to help. 🌐www.capitalvalue.co.uk 📧admin@capitalvalue.co.uk ☎️020 3011 3114

⏳️ 𝐕𝐀𝐋𝐔𝐀𝐓𝐈𝐎𝐍𝐒 𝐒𝐔𝐁𝐉𝐄𝐂𝐓 𝐓𝐎 𝐑𝐄𝐒𝐓𝐑𝐈𝐂𝐓𝐄𝐃 𝐌𝐀𝐑𝐊𝐄𝐓𝐈𝐍𝐆 𝐏𝐄𝐑𝐈𝐎𝐃𝐒 Most lenders will ask their Valuers to provide supplementary advice in addition to their opinion of Market Value. This could include what are known as '90 day', or '180 day' figures (although others ask for 120 day figures too). Different lenders have slightly different wording but effectively, this means 'what would the property sell for, if subjected to a restricted marketing period of say 90, 120 or 180 days?'. The nuances come in the specific wording. Some lenders suggest a 180 day period to achieve a COMPLETED sale, others suggest a 180 day period to achieve EXCHANGE on a sale, with some stating 180 days to AGREE a sale- these aren't the same thing. In normal market conditions, for 'vanilla' properties, 180 days should be sufficient to agree a sale so long as it is sensibly priced. Therefore, MV and a 180 day figure should coincide. For something more unusual, particularly in challenging market conditions, sometimes 180 days isn't deemed sufficient for 'proper marketing' (see definition of MV). In these cases, expect to see a discount on the 180 day figure. When it comes to 90 day figures, expect to see discounts most of the time. Whilst the wording also has its nuance, the general understanding is that lenders here are referring to a quick sale, perhaps at auction (although this wouldn't take 90 days typically). Therefore, if the property in question, for whatever reason (condition, lease length, position above commercial etc.) would likely only sell at auction, there is a strong argument for the MV and 90 day figure to coincide. On that note, could it also be argued that for properties with particularly short leases, the 90 day figure should exceed the 180 day figure? (i.e. the longer it takes to sell, the lower the value will be). From a Valuer's perspective, it would be helpful for all lenders to have precisely the same wording for their 90/180 day figures to ensure consistency and to remove some subjectivity. Let us know what you think. Capital Value Surveyors Limited 🌐www.capitalvalue.co.uk 📧admin@capitalvalue.co.uk ☎️020 3011 3114

𝐓𝐡𝐞 𝐁𝐚𝐬𝐢𝐜 𝐑𝐞𝐬𝐢𝐝𝐮𝐚𝐥 𝐕𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧 🏗 For secured lending purposes, this is often considered as the accepted primary method when assessing the value of a site with Permission for redevelopment. However, in accordance with RICS Guidance, Valuer reliance on only one approach is rarely appropriate and cross checks must also be considered where possible. A Residual Value is essentially the price a buyer can pay for a site, whilst having all development associated costs covered, as well as a suitable element of profit, when completing a development to achieve the end Value, or Gross Development Value. The process starts with establishing the Gross Development Value, making reasonable assumptions relating to specification. The following deductions are then made: 👷 Build costs, contingencies and professional fees 🏦 Finance costs to cover the development period along with a subsequent sales period 🏘 s106/CIL liabilities 👩💻 Agents' fees for the disposal of the completed unit(s) 🧑⚖️ Legal fees to cover the acquisition of the site and the sale of the completed unit(s) 💷 The appropriate Stamp Duty for the acquisition of the site (or sometimes property) 💸 A suitable profit allowance for the developer. This could be a percentage of the GDV or a % of costs. The resultant figure is the Residual Value. This may or may not align with Market Value for a number of reasons, but many lenders insist on this approach to protect their position. This is especially the case for sites already occupied by a dwelling that may have a value in excess of the Residual Value. (this value would be lost as and when that dwelling is demolished). Conversely, a site value in a high value Private Estate will likely far exceed Residual Value given the demand from end users, who wouldn't necessarily expect the same profit that a developer would. 💡Remember, Market Value by definition requires a willing buyer AND a willing seller. It is unreasonable to expect a vendor to sell a site or property at the level of a Residual Value if this is below an Existing Use Value. For expert development appraisals, please do reach out to us, we have the know how and availability. Capital Value Surveyors Limited 🌐www.capitalvalue.co.uk 📧admin@capitalvalue.co.uk ☎️020 3011 3114

Thank you to CPC Finance UK for hosting their recent Investor Day at The Grove . Karl Griggs and Julie Griggs organised an extremely impressive event with a stellar guest list and range of speakers, including Hardeep Toor MRICS Malkit Purewal Sanjay Kumar Josh Knight Daniel Standing and Adriana Cafasso . It was a pleasure to take part and also meet some very interesting people (shout out to familiar faces Matt Smith Jonathan Samuels Jason Patterson Immanuel Ezekiel too!) If you are in need of HMO advice or Valuation, this was the place to be. Capital Value Surveyors Limited 🌐www.capitalvalue.co.uk 📧admin@capitalvalue.co.uk ☎️020 3011 3114

Just back from another brief but successful trip to Dubai. It was fantastic to catch up with friends and clients but most importantly, our partners Declan King MRICS MSCSI and Shahid Kazi of ValuStrat. Thank you for sharing Iftar with us! Back on the grind today so if you need any Valuations in a short timeframe, please get in touch. Capital Value Surveyors Limited 🌐www.capitalvalue.co.uk 📧admin@capitalvalue.co.uk ☎️020 3011 3114

Capital Value Surveyors Limited are delighted to have been shortlisted for 'Advisor of the Year' at the 33rd Props Awards later this year in May🎉 We fully expect this to be another wonderful event hosted by Variety, the Children's Charity. Good luck to all nominees! 🌐www.capitalvalue.co.uk 📧admin@capitalvalue.co.uk ☎️020 3011 3114 Sean Mansfield FRICS Marilyn Connell Simon Jackson FRICS https://lnkd.in/eFvh2ZJ4

𝗗̶𝗢̶𝗡̶'̶𝗧̶ 𝗪𝗢𝗥𝗞 𝗛𝗔𝗥𝗗, 𝗪𝗢𝗥𝗞 𝗦𝗠𝗔𝗥𝗧 🌄 Another 7am Sunday inspection in the bag. 🏗This time, a site with Planning for eight new homes where access was freely available. ⏳️From a business point of view, if you have a three hour round trip for a Valuation, early on a Sunday morning is the most efficient time to get it done. This frees up hours during the rest of the week for report preparation and/or more inspections. If you have urgent Valuation requirements, get in touch with us. Our award winning, expert team are here to help🔋 Capital Value Surveyors Limited 🌐www.capitalvalue.co.uk 📧admin@capitalvalue.co.uk ☎️020 3011 3114

⚡️⚡️⚡️⚡️⚡️ Our first Saturday instruction for our Express Service (with a Sunday morning inspection already arranged!). Are you a broker or lender looking for a market leading Valuation product? Look no further than Capital Value Surveyors Limited and our 48 hour turnaround offering. The criteria.... 🟡Single residential property 🟡Estimated Value £4m or more 🟡In the South East 🟡Access readily available 📨 From inspection, we will return the report within 48 hours. 🧐 Fully audited by an FRICS- accredited Registered Valuer Long form. No corners cut. Who else is offering this? Get in touch with Marilyn Connell 🌐www.capitalvalue.co.uk 📧admin@capitalvalue.co.uk ☎️020 3011 3114

♀️ International Women's Day! Throwback to 2018, and this Bridging & Commercial article about Marilyn Connell and Capital Value Surveyors Limited . How time flies! https://lnkd.in/eNg6SAea

♀️ International Women's Day! Throwback to 2018, and this Bridging & Commercial article about Marilyn Connell and Capital Value Surveyors Limited . How time flies! https://lnkd.in/eNg6SAea