Leasehold valuation help please

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    Leasehold valuation help please

    Hi everyone,

    Could someone help me please. I am a student studying valuation and struggling with this question:

    Fifth floor; 2 x 2 bed flats.

    First floor; 2 x 3 bed flats.

    Ground floor; 2 x 1 bed flats, 2 x 2 bed flats.

    All of the 2 and 3 bedroom flats are let to rent controlled tenants who have the current fair rents agreed by the rent officer 4 years ago of;
    3 bedrooms £150 per week inclusive,
    2 bedrooms £100 per week inclusive.

    Similar flats let under AST’s are being agreed at £900 and £800 per week respectively.

    All of the 2 bed flats on the ground floor were sold of on 99 year (with static ground rents of £250 pa) leases 15 years ago.

    All of the 1 bedroom flats are let on Assured Tenancies at a current rent of
    £2000 per calendar month inclusive.

    Mrs Cymbal the tenant of Flat 17 (3 bed) and Bert Smedley the tenant of Flat 15 (2 bed) are not happy as the landlords have applied to the Rent Assessment Committee (RAC) to have the fair rent increased by an average of 20 % as they (H.I.) have recently spent
    £ 500,000 on exterior repairs and the installation of a new carpet to the common parts.

    The prevailing market values for well-modernised flats in well-modernised blocks (and on 99 year leases) are as follows;
    3 bedroom £1,150,000
    2 bedroom £875,000
    1 bedroom £575,000

    How would I value:
    Enfranchisement valuation for the 2 bed flat ground floor?
    The valuation of the freehold interest?

    Thank you for any help that is given

    #2
    Download the free guide from www.lease-advice.org

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