Report and valuation on commercial property
1.1 On 20th November 2009 you requested me to inspect and value the property known as Chung's Chippy.
1.2 Your instructions requested that I provide you with my opinion of:
a) Market Value
The market value of the property is on the rate of current market conditions.
1.3 I understand that this valuation is required for the purposes of assisting you in considering the suitability of this property in respect of a provision of loan, mortgage or other finance and is thus for commercial secured lending purposes. This valuation is intended solely for this and for no other purposes and should not be relied upon by any third party to whom it is not addressed who would do so entirely at their own risk.
2.0 CONDITIONS OF ENGAGEMENT
2.1 Your instructions are accepted on the basis of the standard Terms & Conditions of Engagement of the Royal Institution of Chartered Surveyors, a copy of which has previously been agreed between our respective organizations. Any variances from them, which have been agreed, are noted in this report.
2.2 I am not aware of any conflicts of interest that preclude me from preparing this valuation.
2.3 I have discussed and agreed with you in writing any special assumptions prior to commencing the valuation process.
2.4 The Valuer is an independent Valuer as defined in the RICS Valuation Standards 6th Edition 2008.
2.5 I confirm that this report is not in contravention of the Building Societies Act 1986.
3.0 DETAILS OF INSPECTION
3.1 The property was inspected on 20th November 2009 and the report prepared by Vignesh Baskar.
3.2 The date of valuation is 20th November 2009
4.1 Salford lies in Manchester in North West England.The area of Manchester is 8.1square miles (21km2) which has a population of 219200,This brough of salford was given city status on 1926.Salford is set to become the headquarters of CBBC and BBC sport in 2011.
This Property Chung's Chippy in salford,which is on the corner of Salford Crescent and Gaythom Street.A huge state of residential development is coming down the road,which would increase the value of the property.Chung's Chippy is very close to regent retail park,it is also related very close to Salford holiday inn Resort.It is located in one of the busiest roads of salford which shows that it is in a very developed area, from chung's chippy it is 10 minutes walk to city center.salford railway station is located on a distance of 1mile from Chung's Chippy and the nearest Airport is Manchester international Airport which is on a distance of 10miles.
4.2 In the period of world war II salford suffered a declian cause it was the region in the industrial era.Then it was enmarked for regeneration.These regeneration program brought a vast development in salford in the past few years were now salford has many tourists attractions like ordsall hall and etc and there are five star hotels and canals and almost everything which a developed cities should have, however like all other country salford is also in the midst of an economic downfall which leads to the fall of prices and etc but still the market is in the recessionary state.
4.3 A location plan is attached at Appendix A.
5.0 GENERAL OVERVIEW (DESCRIPTION I CONSTRUCTION)
5.3 This property is one floor commercial shop,which is used by Chung's Chippy as a take away shop. This property was built on 1995 which is in a good state even now.
This property has parking facilities and is located in the main road which is one of its major reason to be successful .it does not have any industrial loading doors, it just has a back door which is used for delivery purposes.
The mains doors are made of glass paneled wood which is coverable by shutter for the safety of the shop, this property is located in the center of general store and a tuck shop.the external wall are furnished by tiles.
5.4 External and internal photographs are attached at Appendix B.
There is no risk of flood and other things because it is surrounded by wooden planks as boundries.The site is in a rectangular shape which is good the commercial purposes were more space could be utilized when compared to the shapes of shops in triangular shapes etc.
This property has three different rooms one is for kitchen, other acts as a waiting room and the last room as a store room, there is no alterations made till date, this chung's chippy just acts as a take away restaurant.
7.0 MEASUREMENT RECORD
7.1 I have measured the premises in accordance with the RICS Code of Measuring Practice and calculated that it provides the following approximate gross internal / net internal floor areas: -
Description sq ft sq m
Net area 515.85 47.93
7.2 The site area of the property is approximately 404.48 sq meters.
8.1 I have not been able to make specific enquiries of the statutory undertakers in the time available regarding the availability, capacity or location of services. However, my observations indicate that
· There has been no problem with water, electricity,and gas since it is provided by the salford city council.
· Drainage is in a proper condition.
· Car parking facilities are available for the customers.
9.1 This valuation is made on the assumption that the property is in a condition commensurate with its age, character, style of construction and mode of use at the date of this valuation and that it will remain so throughout the term of the loan.
9.2 I have made a full inspection prior to preparing this valuation.At the time of my inspection, the premises appeared to be in a good state of repair, and no defects were noted.
9.3 The comments expressed above under 9.2 are, in terms of your consideration of this section of my report, strictly for your general information only and the points noted do not require your action. Under the heading 21.0 Security & Recommendations below, I will specifically summarise matters, which are material to you in terms of your commercial mortgage lending process and suggest the action, which you should take.
9.4 I have not been instructed to undertake any structural or building survey, test the services or arrange for investigations to be carried out to determine whether any deleterious materials have been used in the construction of the subject premises or subsequent additions. In the event that a subsequent survey reveals defects in the subject premises, I reserve the right to reconsider my valuation in the light of the revised facts.
9.5 My valuation has been assessed based on the assumption that no alterations are required under the Disability Discrimination Act 1995, as amended.
9.6 I have not carried out a survey to determine whether asbestos is present in the building or completed a risk assessment. In the event that the conclusions of such a survey or assessment proved onerous, my valuations could be materially affected. If I am provided with a copy of any existing "asbestos register", I can provide further valuation advice although this may have to follow consideration of an asbestos specialist's report and costings. (The relevant legislation is the changes to the Control of Asbestos at Work Regulations 1987).
10.0 BUILDING, PLANNING AND FIRE CERTIFICATES
10.1 The property lies within the area covered by Salford City Council, which is the Local Planning Authority. Verbal enquiries have confirmed that the property has consent for building plans. In view of this, I have concluded that the present use is fully in accordance with current Planning Law although I would reserve the right to review my valuation on the basis of any alternative facts should they come to light.
10.2 I was unable to verbally obtain information regarding the local development plan or zoning of the property.*
10.3 It was said that the property has valid fire certificate but I was not able to visually inspect it.
10.4 I am not aware of any road widening or other Highways or similar proposals affecting the property and it is assumed to be free of any compulsory purchase or similar orders for the purposes of arriving at my valuation.
11.0 GROUND CONDITIONS
11.1 There are no ground issues which will affect the future marketability of the property,though the site was a industrial site before the whole site was decontaminated before this current property was build.
12.0 ENVIRONMENTAL ISSUES
12.1 I am not aware of the content of any Environmental Audit or other Environmental investigation or soil survey which may have been carried out on the property and which may draw attention to any contamination or the possibility of any such contamination. Based upon visual inspection on site, and discussions with both the current occupier and the local Planning Office, I am of the opinion that no contaminative or potentially contaminative uses have been carried out at the property, which might reduce the values now reported. However, I reserve the right to review my calculation in the event that such matters come to light.
12.2 Though the site was previously occupied by industries it has been totally decontaminated before this property is being built so there would be no ground effects because of the previous industry.there is one more site near by is use for industrial purpose but still there has been a certificated issued stating that there are no hazardous materials stored in the industry and there would be no effects on the places near by.
13.0 TENURE AND OCCUPATIONAL LEASES
13.1 I am informed that the current owner holds the interest in these premises.
13.2 At the time of my inspection I noted that the premises were in occupation by Mr.Alex Woo and there appeared to be no sub-tenancies or lettings of any parts of the accommodation. I have, therefore, assumed that the freehold premises would be available with full vacant possession in the event of sale on the basis that Mr.Alex Woo would vacate the premises..
13.3 This property is currently held as a free hold premises by Mr.Alex Woo .this property is very near by city center and more over there is residential apartments which are coming up down the road of chung's Chippy which would lead to the vast development of the property and sure that the prices of the property would go very high .since this property is one of the best investments which can be made..
13.5 I have not had sight of any statutory enquiries or Land Registry entries and, therefore, assume that the interest is not subject to any onerous or unusual covenants or restrictions or leases, licences, etc., or easements, wayleaves or rights of way in favour of other parties, which I have not drawn to your attention above. Accordingly I would reserve the right to review my valuation in the event that such matters come to light.
14.0 RATING I COUNCIL TAX
14.1 I have made verbal enquiries of the Non Domestic Business Rates Department of salford city council and am advised that the property is currently entered into the Rating List A and is charged a council tax of 975pounds
14.2 If you wish, I can arrange for our Rating Surveyors to check the correctness of this rating assessment. They will also be able to advise on appealing against the assessment if it transpires that it is wrong.
15.0 MARKET TRENDS AND COMMENTARY
FLOOR AREA meter sq
VALUE meter sq
4Brunel Avenue,Salford M5 4BE
Its a plumbing shop down the lane of chung's chippy
2.Premier Retail Carpet
North Phoebe Street,Salford
Its a retail shop which sell carpets,this is a shop is 5min walk from chung's chippy
52 Oldfield road,Salford
This is a take away shop which is located near chungs chippy,but it is further inside the road.
The three properties which are mentioned above are the best comparable for the property to be valued.the plumb centre shop which is mentioned above is a shop of 500sq meters and is valued at the rate of 80 pounds.the mater yiu is a take away shop which is brought 2yrs back ad the paoperty is valued on the rate of the rate 85pounds.
16.0 MARKET RENT
16.1 There is no current market rent for the property since it is a free hold property.the market rent for the place near by chung's chippy cost you 3pounds per square feet.
17.0 INSURANCE REINSTATEMENT COST
17.1 I recommend that the property is insured to a full reinstatement value to include professional fees and demolition costs in the sums of £23100(Twenty three thousand and one hundred pounds)
17.2 This insurance reinstatement appraisal is provided for guidance only. It does not take into account any additional Local Authority requirements, which may be involved in the rebuilding and assumes that there are no foundation problems or need for abnormal foundations or rebuilding. It should therefore be verified by a specialist commercial building's insurance assessor.
18.0 BASIS OF VALUATION
18.1 I have been requested to provide my opinion of:
a) Market value
Since there is no stability in the market all over the world due to the reception it is very difficult to state the market value of the property but still this particular property will have a very good value in future because of the residential area which are been built there. So you can see the developments in 2011 which is just 1 yr to go.of the freehold interest in the subject premises, as at today's date in the light of current market conditions.
18.2 'Market Value' is the estimated amount for which an asset 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.
18.5 My valuation has been made in the light of the RICS Valuation Standards 6th Edition 2008, as amended, and any particular assumptions, which have been made, have been drawn to your attention in this report.
18.6 The premises have been valued on the unencumbered interest as stated, no account being taken of any fixtures and fittings other than those normally designated as landlord's fixtures and fittings, outstanding mortgages or loans that may have existed at the time of valuation. No deductions have been made for any costs involved in the sale of the property and no allowances have been made for VAT or any other taxes.
18.7 I have formulated my valuation based on direct comparable valuations methodology.
19.O OTHER INFORMATION
19.1 The most suitable method of marketing is going through a selling agent to sell a property or buy a property or value the property or check the market prices of the near by properties to know the market value of your property.
Sales Agents in MANCHESTER
1.Salford Estate Agent
Barlow White 209 Eccles Old Road,
Tel: 0161 834 8844
Tel: 0161 272 7774
These are some of the sales and letting agents in manchester.
In my opinion the Freehold interest in the property known as Chung's Chippy has a value of:
£39100 (thirty eight thousand and four hundered ponunds)
In respect of rental value, the property has a:
£1650 (one thousand five hundered and fourty five pounds only)
based on the assumptions, statements or facts as set out above within the body of this report.
21.0 SECURITY & RECOMMENDATIONS
21.1 The following matters should be considered as being material in terms of your commercial mortgage lending process and your consideration of the property as commercial mortgage security:
a) An archive mining report need not be obtained.
b) All though the site was previously used for industrial purpose there is no chances of getting contaminated since the whole property was decontaminated before the existing building build so there are no chances of contamination.
c) HAC is to be undertaken since it lies close to the cement factory and more over the confirmations I got is only verbal.
d) There were no asbestos found.
e) The property lies in north west of England..
f) Tthe evidence of movement is clearly old and non-progressive and a structural engineers report is therefore not necessary.
g) the evidence of dampness is not considered to be excessive in terms of the age and nature of construction of the property and a damp decay specialist report is not considered necessary.
h) The property is in a good condition it is being maintained in a good and a clean conditions so there would be no necessary for repairs
i) This property is located in one of the busiest roads of Manchester, down the lane there are residential apartments which are coming up which would lead to the development of the property therefore this property is one of the best properties for mortgage and things.
22.0 LIMITATION AND PUBLICATION
22.1 This valuation is prepared solely for the use of the addressee and no responsibility is accepted to any other party for the whole or any part of its contents. It may be disclosed to other professional advisors assisting in respect of the purpose for which the valuation is prepared.
22.2 Neither the whole nor any part of this valuation certificate nor any reference thereto may be included in any published document, circular or statement nor published in any way without our approval of the form and context in which it may appear.
23.0 SIGNATURE OF VALUER
23.1 Vignesh Baskar,.MRICS
TERMS OF ENGAGEMENT
As per the instructions of the client,we will carry out the survey as per the RICS red book.all other terms of engagement are as per practice statement in the red book.