Based on your instructions to carry out an inspection and valuation of the above property, we are pleased to report as follows.
1. Purpose of the valuation
The valuation is required for the purpose of a possible purchase by the client.]
2. The subject property
The property is located approximately 2.4 miles north or Fratton train station, in the North east of Portsmouth City. Access to the site is from the north. It is adjacent to the Copnor bridge and railway line.
3. The legal interest
The property has been valued as freehold interest with vacant possession.
4. Description of property
The property is a brown field site previously used as a bowling green. The site has been designated for residential use in the local plan. The site should be clear of any contamination. It is also partially overgrown and has been filled with rubble, to above street level.
5. Basis of valuation
The valuation has been carried out on the basis of Market Value (MV), which is defined by the RICS Valuation Standards as: “the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion”.
6. The date of valuation is 10th January 2009
Please note that this valuation is only valid for a period of 3 months from this date and as such may not apply to an earlier or later date as values are subject to change with time.
7. Assumptions, reservations, special instructions
We have assumed that there are no highway developments, environmental or planning proposals which would materially affect the development property and that there are no mining or subterranean activities know to have taken place and that the property is free from flooding (flood zone 1). We have further assumed that the boundaries are clearly defined and the ownership is known and that there are no boundary disputes. Another assumption is that all work to the property will be undertaken with full planning permission and in compliance with building regulations.
8. Extent of member’s investigations
We carried out a physical inspection of the property on 7th of November 2009. However we did not carry out any specific test such as soil tests to determine the existence of any contamination. We therefore assume that the property is in good condition for the proposed development.
9. Nature and source of information relied on
Information was gathered from a wide variety of sources to undertake the valuation, including: The Land Registry Portsmouth, the local authority and previous sales data from independent private entities. Some of the information, particularly to with previous usage of the property may need further verification.
10. Restrictions on publication
This report is intended for your use and is confidential to you and your professional advisers and should therefore not be reproduced in whole or in part without written authority from ourselves. No responsibility will be accepted for any other person and the contracts (Rights of Third Parties) Act 1999 will not apply.
11. Valuation standards
The valuation was carried out in accordance with the practice statements of the Royal Institution of Chattered Surveyors
12. The Valuation approach
The valuation was carried out using the residual method of valuation, which is used for assessing the site value of a development property. To carry out the valuation, we had to gather market information for the completed development and assess the cost of carrying out the development in order to arrive at the residue (site value).
Having regard to the above information and taking into account the condition of the property, it is our considered opinion that the Market Value of the subject property is in the order of Nine Hundred and One Thousand, Two Hundred and Ten Pounds Sterling (£901,210).
10th December 2009