1.The property is in need of major works to
return the property to a habitable condition
2.The property is in need of major work to remove any Health and
Safety rating system hazards or asbestos containing materials that
require a high level of ongoing management in conjunction with
extensive works to comply with Decent Homes provision i.e.
installation of a central heating system, rewiring, asbestos
removals new kitchen and bathroom.
3.Properties which due to their age, design and location command a
higher than average market value, which due to their age and
condition will incur higher than average costs to maintain over the
30 year Business Plan.
4.Properties which due to their original design, location and
designation are no longer fit for purpose and have associated level
of difficulty re-letting. These criteria may affect more than one
property, for example those contained in a Cat 2 sheltered schemes,
and therefore would be considered on a scheme by scheme basis
rather than individually.
A financial appraisal has been carried out using ARKs Strategic
Asset Performance Model (Appendix C) this shows that to re-let the
property at social rent following the necessary works would result
in a 30 year NPV of £53,849 as detailed in scenario 1, versus
a cash receipt of between £250,000- 275.000 for outright
sale. (Please note we have two property valuations from different
agents as per appendix A) It is therefore recommended to proceed
with outright sale.
This property has an estimated valuation of £250,000 -
£275,000.
It is a three bedroom semi-detached house. Estimated costs required
to bring it up to the lettable standard are £44,187.42,
including a new kitchen, new bathroom, rewire, heating and
extensive garden works.