Assessment task details and instructions You have been instructed by ABC Investments who have just acquired a portfolio of real estate and have asked you to provide a series of valuations and/or valuation advice for each property within the portfolio. Each property is detailed below and you should provide a valuation calculation (as required) with supporting detail for each property. Please note that a valuation report is NOT required. Property 1 The freehold interest in a block of six flats. The flats are let on 125 year leases from the 1st January 1978. The ground rents are 100.00 per annum. The owner of Flat 1 has asked for a leasehold extension. Calculate the premium that would be payable for the proposed extension. Similar flats under long leases are selling for 250,000. Property 2 The freehold interest in two detached houses which are let under long ground leases (both have 400 years unexpired). One of the occupiers has requested to purchase the freehold interest although the property is in a relatively poor condition. The ground rents are per annum for each house. Calculate the sum required to sell the freehold interest. A similar detached property has just sold for 450,000. Property 3 A parade of retail units let under a series of leases as follows: Unit A (Ground Floor only) Has a frontage of 6m and a depth of 18 metres. Let on a 6 year FRI lease from the 1st December 2018 with a rent review at the third anniversary. The current rent is 12,000pa Unit B (Ground Floor only) Has a frontage of 7m and a depth of 20 metres. Let on a 9 year internal repairing lease from the 8 th May 2011 with three year reviews. The current rent is 13,500pa Unit C (Ground Floor only) Has a frontage of 8m and a depth of 22 metres. Let on 12 years FRI lease from the 12th December 2018 with four year rent reviews. The current rent is 29,000pa Unit D (Three storey) Has a frontage of 8m and a depth of 22 metres with basement sales and a first floor office. An FRI lease was granted on the 1st October 2019 for a term of 10 years with a rent review at year 5. There is also a landlord only break clause at years 3 and 6. The current rent is 32,000 Unit E (Ground floor only and in separate ownership) comprises a 7m frontage and 20m depth has just let for 23,100pa on FRI terms. Unit F (in separate ownership) are used for offices and were let back in October 2020 on FRI terms at a rate of 200/sqm Unit G (in separate ownership) has a frontage of 7m and a depth of 16m and has just let and been sold to an investor for 262,500 Calculate the Market Rent and Value of each individual unit. Property 4 Four industrial units: Unit W comprises 150sq m and let on FRI terms for 5 years with 2 years to lease renewal. The current rent passing is 34,000pa Unit X comprises 150sq m. Currently vacant. Unit Y comprises 175sq m let on FRI terms for 15 years with five yearly reviews from 1st January 2016 at a commencing rent of 20,000pa. There are fixed reviews in 2021 to 25,000pa and 2026 to 28,000pa Unit Z comprises 200sq m and recently let on FRI terms for 35,000pa. A similar unit in separate ownership comprising 150sq m has just sold for 328,125. Calculate the Market Value of each individual unit. Property 5 A commercial unit let as a workshop for 5 years on internal repairing terms.
