INVESTMENT PROPERTY COST AND REVALUATION DETAILS
£288,919 - Purchases March 1995 to December 2017 (Qualifying for Indexation Allowances) (Note 9).
£ 10,880 - Purchases after December 2017 (Cessation of Indexation Allowances).
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£299,799 - Total Purchases at Cost as at December 2024.
£392,267 - Profesional Revaluation in 2006.
£189,000 - Fair Value Uplift (Note 15)
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£881,066 - Total Investment Property Cost & Revaluation at 31 December 2024.
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INVESTMENT PROPERTY REVALUATION BASIS
999 YEAR LEASEHOLD PROFESSIONAL VALUATION ON 11 JANUARY 2006
The company's Investment Properties were valued on 11th January 2006 by Chartered Surveyors, Peter Newman & Co, at the request of the company's bankers. The properties were valued at £645,000 as 999 year individual leaseholds.
HMRC LAND REGISTRY INDEXATION UPLIFT OF THE 11 JANUARY 2006 VALUATION
HM Land Registry and the Office of National Statistics maintains a historic index of flats and maisonete prices at the web address below:-
landregistry.data.gov.uk/ukhpi.
The average price for flats and maisonettes in the South Gloucestershire location was £123,953 at the 2006 valuation date and their average price was £200,490 in Q4 2024.
The 2006 valuation of £645,000, when uplifted by the HM Land Registry National Statistics price indices, would give a Q4 2024 extrapolated valuation of £1.048m (£645k x £200k/£123k) if sold as 999 year individual leaseholds.
FAIR VALUE OF INVESTMENT PROPERTIES (£900,000) BASED ON AN INVESTMENT GROSS YIELD OF 6.8% (2023 - 6.25%).
The investment properties (including the market rental value of the administrative office investment property), have been valued at an end of year investment rental gross yield of 6.8% (2023 - 6.25%), which is appropriate for the geographic location of the company properties.
This produces a valuation of £819k, which is an uplift of £520k above the 2006 historic cost (as adjusted for post 2006 additions at cost).