Capital Value Surveyors Limited

💷 According to Statista the average price paid by a first time buyer in the UK in 2023, was roughly £288,000. 🏗 According to BCIS the average build cost per square foot in the UK is around £203. 📐According to NHBC , the average size of a new build property in the UK is around 730 sq. ft. 🧮 If these averages are all correct and are read together, on average, build costs amount to more than 50% of GDV. 🎯 If the UK government wants to build as many homes as they have pledged, either they won't be affordable for an average first time buyer, or developers are going to have to be heavily incentivised! What do you think? Capital Value Surveyors Limited 🌐www.capitalvalue.co.uk 📧admin@capitalvalue.co.uk ☎️020 3011 3114

7 𝐘𝐄𝐀𝐑𝐒 𝐈𝐍 𝐀 𝐑𝐎𝐖 😁 An absolute honour to be shortlisted again in the 'Best Surveyor' category at this year's Bridging & Commercial Awards! Capital Value Surveyors Limited have made the shortlist every year since forming in 2018 and we are very proud of this consistency and of course, to have won it last year was the icing on the cake🏆 Good luck to everyone on the shortlists in all categories, and we look forward to what will no doubt, be another memorable day for everyone! https://lnkd.in/e57uhNgn Capital Value Surveyors Limited 🌐www.capitalvalue.co.uk 📧admin@capitalvalue.co.uk ☎️020 3011 3114

🦁🦁🦁 A big thank you to Savoys Club Malkit Purewal and Sanjay Kumar for their hospitality yesterday evening at Wembley Stadium 🥂 Great company as usual (aside from FORMER RICS Young Surveyor of the Year Gurpreet Singh Sandhu, MSc, MRICS who blagged an invite!) Good to catch up with a number of friends and familiar faces Tom Cantor Matt Watson Darius Shekarrizi Theo Goodman Liam Lawlor Hardeep Toor MRICS Jason Patterson and also see MLS score his first goal for England on his debut!🔴⚪️ Capital Value Surveyors Limited 🌐www.capitalvalue.co.uk 📧admin@capitalvalue.co.uk ☎️020 3011 3114

Fantastic news🥰 Capital Value Surveyors Limited have been shortlisted again in this year's Moneyfacts Group plc Awards in the 'Best Surveying Service' category😁😁😁 Good luck to all those nominated across all categories!!

🪱🐦 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