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Savills’ valuers can advise on large estates like Cherkley

The Private Client Valuation Team carries out valuations on many significant country houses or estates, be it for bank financing, trust/taxation or internal purposes. One of Savills’ most prestigious recent assignments has been the valuation of Cherkley Estate, near Leatherhead in Surrey, for its owner the Beaverbrook Foundation.

Following a fire in 1893, the mansion was re-built to a French chateau style. It is set in 380 acres of grounds and overlooks the beautiful Mole Valley. In 1910 it was acquired by Max Aitken, the first Lord Beaverbrook, then owner of the Daily and Sunday Express and Evening Standard newspapers.

To assess market value Savills considered recent sales of other substantial estates, analysing positive and negative attributes relative to Cherkley in terms of size, condition, architecture, location, amenities and market conditions. Martin Culverwell, of Savills’ Valuation department, explains more: “Unlike the valuation of a house within an urban location, where comparable evidence is often readily available locally, for an estate of this scale we had to comb a significantly wider catchment area within Surrey and beyond.”

From a valuation perspective, Cherkley ticks many positive boxes, as Culverwell explains: “It overlooks attractive countryside, is only 20 miles from Central London and is relatively private. The architectural style, history and first-class condition following refurbishment are all of great benefit.”

If you’d like to visit the estate, 16 acres of landscape gardens are open to the public between 13 April and 30 September. The dining room is available for conference facilities, civil ceremony and wedding receptions, and social events can be catered for.

Contact +44 (0)1372 380 980; www.cherkleycourt.com

Managing the Phillimore Estate

The successful management of the Phillimore Kensington Estate combines a number of our valuation disciplines with the skills of our management team in working cross functionally to coordinate Savills’ construction and letting teams, thus providing a seamless service to the client.

The Phillimore Kensington Estate historically comprised 25 acres of prime Kensington bordering Kensington High Street in the south, Holland Park in the west, Hornton Street in the east and Duchess of Bedford Walk in the north. Originally a ground rent estate in the traditional form it has seen significant change in recent years driven in part by the impact of leasehold reform.

Legislation that gave lessees the right to acquire freeholds or extend leases has led to a release of capital for reinvestment. The management team has directed this at investment within the Estate through a programme of acquisition combined with refurbishment of flats and houses. The overall aim is to deliver high-quality properties of a standard that will sit well in the Kensington letting market.

The tenants of these expect and receive a high level of management service commensurate with the quality of location and property. This ensures continuity of letting with minimal rental voids and a positive demand from relocation agents for further properties. Today the Estate can be most readily compared to a residential investment fund and a lateral thinking approach is required from the management team to deliver superior returns.

For further information, see www.phillimore-kensington-estate.co.uk

Budget update

One of the aims of the Government’s changes to the taxation of so-called non-domiciles is to achieve equality between how domiciles and non-domiciles are taxed on UK property. The proposals in October 2007 were far reaching and signalled the end of a number of tax privileges enjoyed by those who were resident in the UK, but domiciled elsewhere.

From a valuation perspective there has beenan important change in the Budget. A provision has been included to allow assets held in offshore trusts to be rebased for capital gains tax purposes as at April 2008. Where assets are revalued at this date, it will avoid the legislation having a retrospective effect. While the £30,000 levy has been retained, the disclosure requirements have also been watered down, which will be of comfort to some owners.

Hard as the tax changes may be to swallow, valuation advice will be paramount in the next few months for UK property held offshore.

Leasehold enfranchisement

With the extraordinary rise in values in prime Central London in recent years, the desire to either purchase the freehold interest in a building or an individual leasehold extension has never been stronger. There are pitfalls to avoid, so the need for professional advice is very important.

Savills has a dedicated team of chartered surveyors specialising in the following areas, advising both lessees and freeholders on: individual lease extensions; collective block enfranchisement of flats; and house enfranchisement.

The Valuation process starts with a full inspection of the property, detailed market analysis of evidence to establish the freehold and existing lease values and analysis of the leases. A detailed written report is supplied to the client. In all cases the freeholder and head leaseholder (if there is one) is compensated for any loss incurred by leaseholders exercising their rights.

Once a Notice is served, the freeholder must respond with a Counter Notice. A period follows when the premium can be negotiated. If an agreement cannot be reached, the matter may be referred to the Leasehold Valuation Tribunal. As Alastair Stimson, an Associate at Savills, advises, “Leasehold enfranchisement is a specialist area of the law, and it’s important to ensure your solicitor has experience in the field. We can suggest several specialist firms.”