Bulleys were instructed by one of the leading High Street Banks to carry out a loan security valuation report in accordance with the RICS Valuation Professional Standards Incorporating the International Valuation Standards Global and UK Edition (March 2012).
The commercial property comprised an industrial factory/warehouse premises with ancillary 2 storey office block extending to approximately 14,600 sq.ft including adjacent land of approximately 0.58 acres.
The property had initially been purchased at public auction in February 2007 at a figure of £515,000 by the Bank’s customer, who had then approached the Bank for a commercial mortgage to finance the purchase.
The property was well known to Bulleys, The Agency Department having historically marketed the premises at a considerably lower figure 12 months prior to the property going to public auction.
Since our initial marketing instruction, the property had significantly deteriorated. In addition, the property auction details excluded the adjoining land.
As a result of the additional deterioration, we were able to obtain quotations from Builders on behalf of the Bank to estimate the cost of full refurbishment, which was approximately £200,000.
As a result of our historic knowledge of the property, combined with comparable research and analysis, we were able to alert our client to some issues and a Market Value considerably lower than the proposed purchase price, thus protecting our client’s interest.