Colliers CBRE

Extract Valuation: Richmond Lock

Principal Valuation Factors

We set out below our analysis of the most important characteristics of the properties, the methodology adopted in arriving at our valuation and the rationale behind our opinions.

The Location	Richmond is a highly valuable and desirable residential location to the south west of London Close proximity to shops and other amenities as well as the River Thames. Communications are reasonably good with St. Margaret's train station and Richmond Underground Station within easy reach providing ready access to London's West End and the City of London. The A4 and M4 Motorways are close by to the west and provide access to the M25 and thus the west and north of England.
The Properties	The properties are all spacious ground floor two bedroom flats within a partially constructed private gated development. The dwellings are of modern design and constructed to a high specification with high quality fittings. The properties each have the benefit of an allocated parking space in the gated underground parking area, as well as a storage cupboard.
Strengths	Strong demand for new build family and professional accommodation in the area. Good location, near the River Thames within a private gated secure development. High specification new build property.
Weakness	Aircraft noise on Heathrow flight path but not noticeable inside the premises.

The subject properties are situated in an exclusive gated community built by Octagon Homes close to the River Thames. The area benefits from reasonable transport links to central London and good road links out of London.

The subject flats provide spacious ling leasehold two bedroom accommodation and have been constructed to a high standard with little expense spared in the fixtures and fittings. As such they would be attractive to potential purchasers looking for a property into which they could move immediately.

Potential purchasers will also see value in the NHBC warranty and the relative guarantee of avoiding the type of problems that can plague existing period stock, such as subsidence and rot.

The values reported herein are dependent on a sustained and high profile marketing campaign, undertaken by a professional local agent.

We would anticipate a satisfactory level of demand for the properties from both owner occupier typically affluent professionals and international business people with work commitments within central London, and also from long term rental investors.

We would currently allow a marketing period of four months in which to sell the property.

Comparable Evidence

In arriving at our opinion of Gross Development Value for the flat house we have had regard to the following sales of other properties in the surrounding area:

Flat 18, Bevan Court, Clevedon Road TW1

This property sold for £765,000 in October 2007. Leasehold with share of the freehold. A fourth floor apartment consisting of two bedrooms, two bathroooms, living room, kitchen, two balconies and river views. The property is of tired condidtion. The GIA was 948 sq ft and the sale reflects £807 per sq ft.

Capital Values

Taking into consideration the comparable evidence above we have felt it appropriate to apply values of £645,000 for 925 sq ft and £635,000 for 875 sq ft.

Rental Value And Tenant Demand

Rental Values

The lettings market has shown improvement in the last eighteen months or so. Tenants have an increasing preference for the best quality, newly refurbished properties and seem willing to pay the best rents for such properties, rather than seek discounts on more tired and "second hand" properties.

The subject properties when complete will be well presented and provide a high standard of new build modern accommodation. In having regard to similar units of accommodation within the immediate and local area we are aware of rental evidence of good size, newly built flats currently let for between £2,000 to £3,000 per month where good sized, modernised accomodation reflect rents towards the upper end of the rental range.

Our opinion of Market Rent for the subject units as existing is in the sum of £30,000 per annum per unit. This represents £2,500 per calendar month and can be expressed as £577 per week. This is further analysed to show yield returns of between 4.62% and 4.69% on the capital values with vacant possession.

We consider that the property would be let within a period of one to two months, partly depending on the time of year. Tenants are likely to seek standard lettings for a term of twelve months, probably with an option to renew subject to fixed rental uplift.

Rental Evidence:

The following comprises the most recent, relevant rental evidence from within the local area that supports the adopted rental level.

Address	Accommodation/ Details	Beds	Letting Type	Furnishings	Date of Agreement	Monthly Rental Price	Annual Rental Price
2 Riverview Mansions, Clevedon Road	3 Bedrooms in modern block overlooking river with underground parking	3	Long let	Unfurnished	10/03/08	£2,967	£35,600
34 Darling House, Clevedon Road	2 bedrooms, two bathrooms open plan living/dining, balcony, U/G parking	2	Long let	Unfurnished	09/11/07	£2,900	£34,800