Tax Valuation for Private Company

Valuation of a flat in Mayfair for Annual Tax on Enveloped Dwellings (ATED) purposes

A private equity company that provide its clients with tax planning advice gave instructions for Market Valuations as at April 2012, April 2017 and a current Market Value.

The subject property comprised a second floor 2 bedroom lateral apartment of 715sqft within a corner, period building with passenger lift in Mayfair. The property was presented in slightly dated order, and held on a long lease.

Enquiries were made as to any changes to the property between the first valuation date (April 2012) and our inspection which may have had a material impact on value. The property had also been let and details were obtained regarding the tenancy agreements that were in place since 2012. Whilst there had been no material changes to the property, the rental income had changed quite significantly.

In arriving at the valuation figures, a range of comparable evidence was gathered. There had been little activity in the subject block, however through our online portals (subscription-only) and using Land Registry sales data a body of evidence was collated from mid-2011.

In addition, conversations were had with multiple local agents regarding general pricing movements between the valuation dates, current market conditions and the status of similar properties listed for sale. The firm also had regard to historical market commentaries produced by Knight Frank (in relation to Prime Central London) and LonRes (regarding the local Mayfair Market) and indices.

Adjustments were made to the comparables based on a range of elements, including the facilities/amenities of a particular block, internal condition, lease and ground rent details, aspect, demised outside space, floor area and parking arrangements, amongst others.

The valuation provided opinions on all 3 values alongside a rationale to provide insight into our calculations.