At Caxtons, our dedicated property valuation team provides professional property appraisals throughout the south east of England. Our commercial and home valuation services are provided for a wide variety of clients including banks, financial institutions, pension funds, professional advisors, private individuals and property companies.
Every year we value property totalling in excess of half a billion pounds using our in-depth knowledge and experience of local markets. Our property valuation services take account of current market conditions and data, and all our valuation services exploit the latest development appraisal software and resources, maintaining Caxtons' place as a leader in this sector of the property industry.
Valuations and property appraisals for both home and commercial purposes can be provided for the following:
- Loan purposes
- Taxation and accounts
- Matrimonial settlements
- Pension funds
- Charities Act compliance
- Commercial property valuation (industrial, retail and office)
We were recently contacted by a major high street bank to undertake valuations of two properties for one of their customers. The properties, a light industrial workshop in Walthamstow, which was in the process of being converted into serviced offices, and a small vehicle repair workshop with a residential flat above in Hackney.
The bank’s customer had undertaken some building works to the Walthamstow property, including renewing the roof, inserting windows and erecting timber stud partitions. However, in order to complete the project, he required extra finance. Caxtons was instructed to value this property in its current, unfinished condition, to estimate the value of the property once the works were completed, and to scrutinise the customer’s schedule of costs for undertaking the work to assess whether they were reasonable. The second property in Hackney would act as additional security and was also valued.
I met the customer at the Walthamstow property to discuss his plans for the building and to obtain copies of the development drawings, cost figures
and of the existing leases (there were tenants in the Hackney property, and part of the Walthamstow property was still occupied). Both properties were inspected, measured, photographs taken and notes made on their condition and the progress to date of the conversion works.
Walthamstow's current value was arrived at by working back from the estimated final value, assuming it had been completed, and deducting the cost of works still to be undertaken. This procedure is known as a development appraisal and includes an assessment of whether the customer's own estimates of cost are reasonable. In this case, they seemed realistic, although there was perhaps an over estimate of the projected value of the finished building.
The building in Hackney was valued as an investment property and the current income stream was assessed from both the workshop and the residential flat, whilst also comparing this with market rents, and then applying a multiplier (or yield) in order to provide a capital value.