We were instructed by our client, a pension fund provider to establish the Market Value of a property held within the pension fund. The property is a Grade II Listed period building originally dated from mid to late 1600s and it is currently being used as a language school.
When determining the Market Value of the property, we began by considering its current use and identifying the most suitable approach for gathering comparable evidence. The property’s current designation falls under D1 non-residential institutions; however, under the updated use class system, it would be classified as Use Class E, which encompasses a broad range of commercial uses, including offices and other commercial buildings. Given that the accommodation is configured as an office and a future occupier is likely to be an office user, we concluded that the most appropriate comparable evidence should be based on office or general commercial premises
The valuation was split into two component parts. First, the rental rate was found using the comparable method, in order to ensure a like-for-like comparison of the subject property to its market equivalents, after making any necessary adjustments. This method was then applied again to determine the investment yield, as the property is currently leased, generating rental income. After gathering and analysing the evidence, we established the property’s market rent and determined the Net Initial Yield, enabling us to calculate the Market Value.
We provided the client with a detailed, evidence-based valuation report, ensuring the property was fairly assessed in accordance with RICS procedures and compliant with pension fund regulations.
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