StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Property Valuation Exercise: London - Essay Example

Cite this document
Summary
"Property Valuation Exercise: London" paper argues that people might just prefer to pay lower rents and move to Area 4 or Area 5. They might just have to spend a little more time commuting to and fro from the workplace, but it might be worth the effort…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94.7% of users find it useful
Property Valuation Exercise: London
Read Text Preview

Extract of sample "Property Valuation Exercise: London"

Then there is valuation based on the type of property: whether commercial or residential. Generally, for a given location, the valuation of commercial property is much higher than residential property. The profession and income levels of the residents also influence the value of a property to a certain extent. Case Study : London "Th Isle of Dogs now centres around Central Wharf (Canary Wharf refers to both the r, the tube station, and the offices in its immediate vicinity). Canary Wharf is London's financial district. Businesses located in Canary Wharf include Citibank, Credit Suisse, Barclays Bank, and HSBC. Businesses from other industries, such as BP and Reuters, have also been located in the area, but it is still dominated by the financial sector. This means that a significant proportion of the residents of E14 work in the financial sector, and earn high wages. It also means that the types of property here are predominantly new properties (built after the regeneration in 1981) designed for young executives rather than families."1 Average Monthly Rent in London (http://www.net-lettings.co.uk/)3 The above table shows the average estimated monthly rentals in different parts of London. Area 1 covers localities like Kensington, Bloomsbury, St. John's Wood, Green Park, Westminster, and other central areas. Being centrally located and having access to all amenities, this area is the highest-valued one in terms of rentals. Area 2 covers the localities just adjoining Area 1. Kilburn, West Hampstead, Isle of Dogs, Elephant and Castle, Kennington, Dulwich, and Brentford are the areas covered under this category. In the south, it extends to Raynes Park and Merton Park. In the northwest, Woodford seems to be covered under this category, while surrounding areas do not belong to this category. Here, the rentals are slightly lower as compared to Area 1. Similarly, Area 3 is marked by the localities bordering localities under Area 2. Prominent among these are Kensel Garden, Strafford, Wallworth in the central area, Stanmore, Totteridge, Cockfosters in the northeast, and Strawberry Hill and Kingston in the south. There are a few areas like Surbiton, Bickley, and Bromley, that Bromleyut in the south among Area 4 and Area 5 categories. Area 4 consists of Bartnet, Endfield, Ponders End in the north and West Wickham and Ewell in the south. This category is spread out in all four directions and can be broadly said to be on the periphery of the city. A few exceptions to this would be areas like Nunhead, Ladywell, etc., that are located in almost central areas. Area 5 is almost on the outskirts of the city and thus lowest in terms of rent/yields. Recent Changes in Office Rentals Average office rents in the CBD (Central Business District) have recently fallen almost 38 % to $ 777.40 per sq. m, making it Europe's sixth most expensive business district. While London's Mayfair district is a premium business center and can be compared to the Triangle d'Orthe area of Paris , rents have recently fallen in this area too. Even with a 45 % fall in its rental values, West End remains the most expensive office area in Europe to date with rental values of 961 euros per sq m.4 Conclusion Thus, while agreeing, an owner and tenant have to keep many factors in mind. While the importance of factors like location and amenities cannot be ruled out, market conditions will also have to be kept in mind. In the past year, rentals have fallen by almost 50 % due to a plethora of reasons; changes in the subprime lending rates and recession being the major ones. Even after the property has been let out for a certain period, there could be some market forces that might compel the owner to modify the agreement. This could mean continuing with the same tenant at a lower rent or reducing the term of the agreement. The owner must also keep in mind the income and financial capacity of the tenant. While commercial property in the premium areas will always be in demand, the same might not hold for residual areas, especially localities in the prime areas or the vicinity of the central business district. People might just prefer to pay lower rent and move to Area 4 or Area 5. They might just have to spend a little more time commuting to and fro from the workplace, but it might be worth the effort.  Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Property valuation Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from https://studentshare.org/business/1509728-property-valuation
(Property Valuation Essay Example | Topics and Well Written Essays - 1000 Words)
https://studentshare.org/business/1509728-property-valuation.
“Property Valuation Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/business/1509728-property-valuation.
  • Cited: 0 times

CHECK THESE SAMPLES OF Property Valuation Exercise: London

Explain how the value of property is affected by changes in the property market

property valuation has become an important part of the investment culture of the British and European Countries as the valuation practices have.... hese factors which affect property values differ from jurisdiction to jurisdiction based on the different business and economic cultures within the European Union member states which will result in the variability of valuation approaches from country to country (Downie et al.... hese factors as understood by Waroloa and Bernask (1996) can have direct and indirect influences upon the structure, operation and valuation of the real estate concerns in an economy....
12 Pages (3000 words) Essay

The Modern Law of Real Property

Principles of Equity 2nd Edition, london, Butterworths.... The Modern Law of Real Property 16th Edition london ... The Law of Restitution 5th Edition, london, Sweet & Maxwell ... Commentary and Cases on the Law of Trusts and Equitable Remedies 10th Edition, london, Sweet & Maxwell ... Cases and Materials on Equity & Trusts 4th Edition, london, Butterworths ... The Law of Real Property 6th Edition, london, Sweet & Maxwell ...
7 Pages (1750 words) Term Paper

Beneficial Interest in Land Law

In this respect, David exercised his right to sell out the property without consulting or even seeking the consent of Marryam, since according to the provisions of the law, David is the sole registered owner of the property, and that has the exclusive rights to exercise the decisions on the property, as the entitled-spouse with a better title to the property.... The paper "Beneficial Interest in Land Law" proves that at a property registered under a sole owner, the entitled owner has a better title to occupy the property....
6 Pages (1500 words) Essay

Obligations of the Bank in Connection with the Sale of Property

Moreover, as determined in the case of City of london Building Society v Flegg ([1988] 1 AC 54), the effect of section 30 of the LPA 1925 means that if there are two legal owners of a property, the equitable co-owners will be overreached upon the exercise of a power of sale by the Bank.... The Court of Appeal rejected this argument and held that the cause of action arises once there is failure to make payments due under the mortgage and the accrued right isn't taken away by the exercise of a power of sale and “the right to sue for the mortgage debt arose at the time of that failure and, at that time, monies were outstanding on the security of the mortgage” (para....
8 Pages (2000 words) Case Study

The Royal Institution of Chartered Surveyors in the United Kingdom

This suggests that the sale price should be disregarded as evidence during the valuation exercise as it impends or influences the valuer.... property valuation is necessary due to the heterogeneous nature of chattels as none is identical to the other while the locality of the property is also crucial in the final determination of the assessment.... ognitive shortcuts (called heuristics)” hence Levy (1997), Harvard (1996), and Diaz (1997) alluded that valuers merely use heuristics in property valuation: “Respondents use the figure obtained from their previous valuation to assist in determining the result of their next valuation” (Levy, p....
13 Pages (3250 words) Research Paper

Property Function of a Proposed Venture

The paper "property Function of a Proposed Venture" is an outstanding example of a finance and accounting literature review.... The paper "property Function of a Proposed Venture" is an outstanding example of a finance and accounting literature review.... Topic: property FUNCTION OF A PROPOSED VENTURE ... The parcel of the real property can be owned and controlled by different parties in which one owns the surface rights while the other owns the air rights together with the owning of the sub-surface rights....
12 Pages (3000 words) Literature review

Managing Resources in a Child Fire Safety Awareness Project

Bournemouth is located approximately 170 km southwest of london.... Bournemouth is located approximately 170 km southwest of london.... Bournemouth is located approximately 170 km southwest of london.... The recruitment exercise is being carried on due to the latest statutory requirements based on the national risk management plan that has come into effect.... The total cost of the project including the resources used for the exercise which is necessary for future budget considerations when similar undertakings are considered....
9 Pages (2250 words) Case Study

Surveying - Dilidtins Process in Property

ouglas, J 2010, ‘Building Surveys and Reports', John Wiley & Sons: london. ... Property Litigation Association: london. ... ood, B 2009, ‘Building Care', John Wiley & Sons: london.... They are also required to exercise due diligence in the conduct of their work and give informed decisions that are guided by the professional and ethical systems to which they are bound.... otably, surveyors are required to exercise professional objectivity in the various capacities or roles, as well as in the advice they give....
11 Pages (2750 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us