Commercial Property Valuations - anyone in the game ?

[Macster]

Just wondered if we have anyone in Commercial Property on board ?

I've been asked by my old man to see what interest I can drum up to possibly sell a Commercial Property he owns.
I know this will vary by region in some respects, but is it more commonly valued on the Income its generating ?

ie, This one generates £16k/yr, £13300 from a shop on Gd Floor, and the rest from a Flat above.
4+Yrs still to run on the Lease.
Im thinking that with a return ratio of perhaps 10-12% for any Investor, it must put a valuation at perhaps somewhere between £133 - 160K ??

Given that the Bank Interest is so low at present, that cant be that far out can it ?

Cheers.

 

[Jaymosafehands]

Good logic. I'm not a valuer but work in the finance side of property ( dare not say I'm a banker!! ) other condsiderations to factor in is location, condition and other properties on the Market nearby.

In my honest opinion, if he doesn't need to sell he shouldn't. Market value has broadly dropped 30% in the last 18 months, and coupled with property owners having to pay rates on vacant properties and virtually all high street banks running like hell from investment property it's not a sellers Market.

Maybe the best person to approach is the tenant of the shop, see if they want it? They would have more chance of getting the money from a bank being owner occupiers.

Don't know if this is any use, but if you want any more info let me know.

 

[PhilTheFragger]

Fragger is speaking with his Ex Bank manager Hat On......

If there is only 4 years left on the lease, its virtually worthless

Nobody is going to buy the lease, spend to fit out the premises, then just as they are established, the lease is pulled.

cant a longer lease be negotiated?

Fragger
You name it...I've done it

 

[Macster]

Wakey wakey Fragger.........read it again.

He OWNS the Property.......and his Tenants in the property have 4+ years to run on their Lease..........

 

[Macster]

Thx Jaymo, he doesnt 'need' to sell, but at 75 yrs old, just looking to cash some of his assets in to live a bit etc.......

I see your East Yorks too......know Hull well ?

Hows the KP looking ? Played it once a while ago, and it was better than I imagined, and I recently won a Voucher for a 4Ball round too......looking forward to returning this summer sometime.

 

[PhilTheFragger]

Oops

Daily Fail

just ignore me

Fragger

 

[Jaymosafehands]

Thx Jaymo, he doesnt 'need' to sell, but at 75 yrs old, just looking to cash some of his assets in to live a bit etc.......

I see your East Yorks too......know Hull well ?

Hows the KP looking ? Played it once a while ago, and it was better than I imagined, and I recently won a Voucher for a 4Ball round too......looking forward to returning this summer sometime.

Fair play to him, more fun spending it!!!

Know Hull well? Born and bred east hull, although slumming It out west now.

KP is coming on well, they're spending plenty of time and money on it, and this year it should be in a decent state by april-may rather than June-July last year!

Where do you play?

 

[Macster]

Brough is my track, and with a new Master Greensman at the helm this year, we have high hopes for it looking immaculate this year.

This property is on the North/better side of Hessle Road, right on the 'busiest' section you could say, so Ive put an Agent on the case to come up with a valuation.

 

[Jaymosafehands]

Brough is my track, and with a new Master Greensman at the helm this year, we have high hopes for it looking immaculate this year.

This property is on the North/better side of Hessle Road, right on the 'busiest' section you could say, so Ive put an Agent on the case to come up with a valuation.

Lovely course, know it very well! It's probably where I'll join next year to be honest, it's only 10 mins away. Heard a lot about the new greenkeeper, think it's just what you need after the last few years. Bet it's in great nick in the summer.

Hassle road is a funny one. I recommend speaking to Richard topham at parades commercial, he knows the area really well.