STATUTORY VALUATIONS REPORT – Cheap Research Essays

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It is not a good day at Floggitt and Fleessam Chartered Surveyors. The senior partner, Charles Protimeter is in a bad mood. His graduate assistant, Willie Floggitt BSc Est Man (University of Westminster), grandson of the founder of the firm, is off sick with an attack of dry rot and their most valued clients, HOSPESTAN INVESTMENTS (H.I), have acquired a large Edwardian block of flats from the receivers of Blenkinsop Holdings (in voluntary liquidation). Cameron House is on five floors comprising the following;

Fifth floor; 10 x 1 bed flats, 5 x 2 bed flats.

Forth floor; 10 x 1 bed flats, 5 x 2 bed flats.

Third floor; 10 x 3 bed flats.

Second floor; 10 x 3 bed flats.

First floor; 10 x 3 bed flats.

Ground floor; 10 x 1 bed flats, 5 x 2 bed flats.

Basement; 400 square metres of storage; could be converted subject to normal approvals being obtained.

All of the 2 and 3 bedroom flats are let to rent controlled tenants who have the current fair rents agreed by the rent officer 4 years ago of;
3 bedrooms £350 per week inclusive,
2 bedrooms £250 per week inclusive.

Similar flats let under AST’s are being agreed at £700 and £800 per week respectively.

All of the 1 bedroom flats are let on Assured Shorthold Tenancies at a current rent of
£2000 per calendar month inclusive. The general level of rents in the area for similar properties on AST’s is circa £ 2500 exclusive.

Mrs Cymbal the tenant of Flat 17 (3 bed) and Bert Smedley the tenant of Flat 15 (2 bed) are not happy as the landlords have applied to the Rent Assessment Committee (RAC) to have the fair rent increased by an average of 20 % as they (H.I.) have recently spent
£ 660,000 on exterior repairs and the installation of a new carpet to the common parts.

Jocasta Grimeley-Ffiennes is Chairwoman of the tenants association, a practising Barrister and a formidable opponent. She is of the opinion that the rents for all of the one bedroom flats is excessive and is referring the matter to the RAC for their determination of same. She has a 2 bedroom flat held on a 99 year lease from 24/4/1988, with a ground rent of £300 increasing by £100 every 33 years.

The prevailing market values for well-modernised flats in well-modernised blocks are as follows;
3 bedroom circa £ 1,550,000
2 bedroom circa £ 975,000
1 bedroom circa £ 675,000

You must therefore produce:-

1 A enfranchisement valuation for the flat of Jocasta Grimeley-Ffiennes
2 The valuation of the freehold interest as at the hand in date.
This will involve a fully annotated first view and second view valuation.

MAKE ANY OTHER ASSUMPTIONS THAT YOUR REQUIRE; THESE MUST BE STATED.
Performance criteria are;

The legal principles involved
Statements of assumptions
Explanatory adaptation of calculations
The layout and logical progression
Mathematical accuracy
Conclusions reached.

Statutory Valuations Report

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Introduction
Investments in real estates have proved to be one of the best long term business incentives (Schuck, 2003). In the current world a number of investors have established multibillion estates that have proved to be the most paying venture with a lot of long term benefits to the owners. The majority of the investors in real estate ventures have made use of the available space in the air by constructing flats thereby utilizing the available free air space (Rotkowski et al, 2012). Despite the high amount of initial capital needed to establish the flats, their benefits have proved to be long term, majority of them passing their benefits to the next generation.The process of leasing and giving out at freehold has a number of legal procedures that need to be settled between the parties involved during the process of establishing an agreement. The same applies when it comes to letting out rooms or flats for tenants to rent (Merriman, 2012). There are a number of legal procedures that need to be followed both by the tenant and the landlord that will always ease their future coordination. A number of cases and other problems always emerge between tenets and landlords/ landladies when the property owners reverse to increase the amount of rent to be paid by the tenants (Meade, 2010). In this paper am going to conduct a statutory valuation report on the matters concerning Floggitt and Fleessam Chartered Surveyors ad their client Hospestan Investments. I will conduct an enfranchisement evaluation for the flat of JocastaGrimeley- Ffiennes as well as the valuation of the freehold interest as at the particular hand in date.
The Case at Hand
HospestanInvestments (HI) havepurchased a large Edwardian block of flats from the receivers of Blenkinsop Holdings in a voluntary liquidation. This particular storied building is named Cameron house, and the Hospestan Investments have resorted to rent it out to tenants at different calculated rental charges. It has five floors; the fifth floor has 10×1 bed flats and 5×2 bed flats. The fourth floor has 10×1 bed flats and 5×2 bed flats while the third floor has 10×3 bed flats. The second floor has 10×3 bed flats while the first floor has 10×3 bed flats. The ground floor has 10×1 bed flats and 5×2 bed flats. It has a basement with estimated area storage of 400 square meters, and it can be converted subject to normal approvals being obtained.
In this particular building, all the 2 and 3 bedroom flats are let to rent controlled tenants who have the current fair rent that were agreed upon by the rent officer four years ago. The agreement was that the 3 bedrooms £ 350 per week inclusive and the 2 bedrooms£ 250 per week inclusive. For the case of Assured Shorthold Tenancies for the 3 bedrooms agreement were reached upon that they have £700 included on a weekly basis while for the 2 bedrooms £800 be included on a weekly basis. All of the one bedroom flats are let on Assured Shorthold Tenancies at a current rate of £2000 per calendar month inclusive. In this particular region, the general level of rents for similar properties on AST’s is circa £2500 exclusive.
The landlords of this particular flat have decided to increase their fair rent, and they have made a step of reporting the same matter to both the tenants and the Rent Assessment Committee (RAC). They claimed to have spent £660,000 on exterior repairs and the installation of the new carpet the common parts. Some of the tenants, including Mrs. Cymbal the tenant of Flat 167 (3 bedrooms) and Bert Smedley, the tenant of Flat 15(2 bedrooms), feel that the planned increment in the rental charges are not justified. The same matter has been raised to JocastaGrimeley-Ffiennes who is the Chairperson of the tenants association, a practicing Barrister and a formidable opponent. She is of the opinion that the rents for all of the one bedroom flats is excessive and is referring the matter to Rent Assessment Committee (RAC) for their determination of the same. She has a two bedroom flat held on a 99 year lease from 24/4/1998, with a group rent of £300 increasing by £100 after every 33 years. A lot of concerns are raised on these matters by the tenants since they feel that they are being exploited by their landlords. This is due to the fact that the prevailing market values are not in line with what they are paying as the rental charges for this particular residential premises they are occupying.
Enfranchisement Evaluation
For the flat occupied by JocastaGrimeley-Ffiennes the three bed roomed flats are charged at £350 per week and this adds up to £ 1200 per month. For the case of 2 bed roomed flats, they pent £ 660,000 on exterior repairs and the installation of new carpet to the common parts. This therefore means that the qualities as well as the value of this particular residential dwelling have been upgraded. In the process of increasing the rental charges by the landlord to the tenants, the law requires the landlord to prepare a formal document to the Rent Assessment Committee (RAC) who has to come in.
After conducting a number of assessments on the changes towards upgrading the conditions of the residence, in this case the flats, they will either approve or disapprove the proposal presented to them by the landlords. This is the legal principle involved in undertaking this particular change in the residential dwellings.
There are a number of regulated assumptions by the Rent Act 1997, such that the tenant is assured security of tenure for the tenant and up to his or her other two successors (Marples, 2001). Therefore when one comes into a dwelling place as the tenant, he or she has the security of passing the tenancy of the particular dwelling place or flat in this case to other two individuals of his or her family. The rents paid by the tenant are restricted to fair rent and without exploitation by the landlord. Any complaints raised by the tenants to the Rent Assessment Committee (RAC), as we have seen two tenants taking the same step, then the RAC. The RAC has the mandate to fix the rental charges to required level.
There is another assumption of short hold, and this was created by section 20 of Housing Act 1988. The Act states that the landlord has no power to determine the tenancy for a period less than six months (Heffman&Boydt, 2010). For the case of Mrs. Cymbal and Bert Smedley, their case can have more weight if they have stayed for this particular flat for a period not exceeding six months. For this case they law will offer them a number of supports according to section 22 of Housing Act 1988, sated above.
He landlord of this flat may undergo defeat in this particular case especially in a situation where the occupants of the flats were not on a short hold agreement. According to the law, the landlord is only allowed and given the opportunity to increase on the rental charges if the particular dwellers or occupants were on a short hold agreement (LoPucki, 2014). This will mean that after a period of six months, if the landlord happened to undertake a number of renovations that prove to upgrade the conditions of the flat. In this case he or she can raise a formal concern of to the RAC stating the reasons why he or she believes changes has to be brought in and effected on the current rental charges.
There is the assumption of assured tenancy as retrieved from session one Housing Act 1988. The act gives full security of tenure to the tenant and any action by the landlord to eject the tenant form the dwellings are against the law (Jurinski, 2006). This can only be exempted if the tenant has violated some of the code of conducts signed during the initial formal and legal stages of occupying the flat. Some landlords try to violet this through ejecting tenants by increasing the rental charges, and therefore the law has provided the landlords with limited control of rent. The same applies to the tenants who may want to control the amount of rental charges they are paying regularly. In embracing justice, the law has the same way given limited control towards rent by the tenants (Greene &Schnapp, 2001).
For the case of Mrs. Cymbal the tenant of Flat 167 (3 bedrooms) and Bert Smedley, the tenant of Flat 15(2 bedrooms) and the landlords, they only have limited control on the rental charges. JocastaGrimeley-Ffiennes, who is the Chairperson of the tenants association, therefore has to come in and fight for the rights of the two tenants who believe that their rights are violated. JocastaGrimeley-Ffiennes will therefore have to raise the same matter to the Rent Assessment Committee who will give their final verdict on the same issue.
When estimating the value of a residential property the following factors are put into consideration alongside a number of empirical and scientific assumptions.
a) Location of the flats. The area where the flats are located determines the rate of interest calculated when at times of valuation of the free hold interest as at the hand in date. Areas close to towns tends to attract a lot of investors to undertake a numbers of business incentives due to their easy access alongside ease of mobility to industrial areas and sites (Goldberg, 1993). The same is observed when it comes to the premises within the town or central business districts (CBD), which exhibits a lot of demand from residential dwellers than other areas away from town. Due to the location factor, flats around or rather close to the towns always have high valuation than those in the remote areas.Due to this reason the rents for all the one bed roomed flats in the Cameron house are highly charged than the other rental charges in other flats established in remote areas.
b) The accommodation capacity of the flats is another factor put into consideration when evaluating the free hold interest as at the hand in date. The higher the number of rooms in a particular flat, the higher its ability to accommodate as many people as possible or a bigger family. Those flats with high accommodation capacity will end up having a high free hold interest as at the hand in date (De Garis, 2010).
c) The potential of the neighborhood will always determine the level of interest rates for the legal principles involved during leasing of flats as well as other residential places (Crain, 2007). Flats established near neighborhoods that are well doing as well as having high incomes will tend to be more expensive than those found near neighborhoods with less income. This is due to the assumptions that majority of the occupants or dwellers in the newly established flats will be from the rich neighborhoods that are well off. This particular kind of neighborhood will be made up of individuals assumed to be having the ability of paying the highly estimated rental charges as well as purchasing power. The reverse is true when it comes to the flats established near neighborhood who seems to be poor or rather with deemed financial abilities (Bradshaw, 2000). They are therefore assumed to be having less purchasing power and very few or less will afford to meet the highly estimated rental charges for these particular flats.
d) Those flats that area established in a large area of plot size will always have high interest rates whenever some legal transactions in terms of ownership are conducted. When leasing out those flats with big area of plot size, the amount reached at within the stipulated time frame will always exceed the prices for those with smaller plot sizes.
Legal principles involved
In the real estate, the law recognizes different types of property that are involved that are related to land and anything tangible to the land in question (Black, 2004). The law of contract is one of the most common laws that are applicable to real estate housing. There are a few ways that can bring about consummation of the agreement relationship between two gatherings included in the land business. For the situation where there is no reasonable date of ending the agreement, the entryways are constantly open for arrangement between the occupant and the house proprietor on the most proficient method to end the agreement.
The law of sale of products can likewise be material when the property being referred to has been sold. The issue being referred to is identified with the offer of products law since the proprietorship has been gone from the proprietor to the purchaser (Black, 2004). The perplexity at the library showcase made Holt to accept that the book he is purchasing is fit as a fiddle. The offer of merchandise law obliges that the dealer ought to pass products of good quality to the purchaser so that the purchaser can get quality for his cash (Benjamin, 2003). For this situation, Holt accepted that he was obtaining a book in great quality in agreement to the value citation. Since he has been given the book he never expected to purchase, Holt has a significant case against MacPherson. In his case, Holt can contend that the property went to him by the merchant was not comparing with the portrayal he gave for the property as per the offer of good law. Also, the offer of products law requests that the property went from the merchant to the purchaser ought to be fit for reason and this was not for this situation of Holt and MacPherson. MacPherson is subject under the offer of merchandise law which obliges that the nature of products went to the purchaser ought to relate to the specimen that was placed in the library show. In such manner, Holt should have been given a sensible chance to contrast what he needed with purchase and what he has been given as the real item to evaluate whether the products have any imperfections. This accord the purchaser an opportunity not to be tricked into purchasing merchandise that does not mirror the measure of cash paid on them (Ardem, 2005). Hence, MacPherson is at risk for passing products which are not of the right amount to the purchaser.
Then again, life domain proprietorship is the area possession for the length of time of an individual’s life, to suggest that such proprietorship closes upon the demise of the proprietor, after which the responsibility for area may be returned to the proprietor or it might be gone to another outsider. The standard in life home is that the responsibility for area turns into the inhabitant since the possession does not exist past the demise of the proprietors so it can be gone to the proprietor or other outsiders. Lawfully, easement is the non-possessory enthusiasm for someone else’s territory that permits the holders to utilize the property for monetary increase, notwithstanding deficient with regards to possession to the area and the proprietor stays with select directly over his territory (Antony, 2001). Easement is the privilege of one individual to practice a restricted manifestation of proprietorship or ownership of someone’s property for a certain time of time while the full possession stays with the first proprietor. Then again, a tenacy is typically a fleeting understanding, whereby the occupant fundamentally utilizes the estimation of the apparatuses and fittings for his enthusiasm for the property.
Conclusions
Investments in real estates have proved to be one of the best long term business incentives. In the current world a number of investors have established multibillion estates that have proved to be the most paying venture with a lot of long term benefits to the owners. Majority of the investors in real estate ventures have made use of the available space in the air by constructing flats thereby utilizing the available free air space. In the case of Hopsestant Investment, the process of increasing the rental charges by the landlord to the tenants, the law requires the landlord to prepare a formal document to the Rent Assessment Committee (RAC) who has to come in.According to the law, the landlord is only allowed and given the opportunity to increase on the rental charges if the particular dwellers or occupants were on a short hold agreement.