residential property

Maximising the value of your Legacies
residential property
executorservices.co.uk
Introduction
What do Move with Us do?
Move with Us has been a specialist at providing
competitive and high quality residential property
solutions to businesses since 1997. In 2010 we
began to offer a probate property solution to
probate practitioners, solicitors, charities, Will
writers, Trusts and financial institutions. As such
we are keen to ensure that you receive that same
level of support.
Our aim is to ensure that the maximum return has
been sought for the property asset. We safeguard
against the under-selling of probate properties by
providing a robust, managed process, that
ensures best outcome for the beneficiaries.
We provide an unique level of support to the
estate administrators so that the management of a
residential property asset does not become a
burden, wherever it may be in the UK.
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“Age UK has offered an Executorship Service for
over 15 years and we always look for ways to
improve the quality and efficiency of the service
which we know is so valued by people in later
life. Move With Us now handle the valuation,
marketing and management of our probate
properties and their very detailed and thorough
valuations give us all the information we need to
meet our own obligations as Executor but also
meet the needs and expectations of the
beneficiaries whether they are charities or family
and friends. A national charity recently said, “I
wish everyone would use Move with Us!””
(Helen Hoare, Head of Probate and Legacies,
Age UK) 13/02/2012
movewithusbusiness.co.uk
Market appraisal
Where should you start?
For anyone to be able to demonstrate the best
return for a residential property asset in the UK,
they must first understand the challenges that lay
ahead. They should have knowledge of the pure
economics in the market place so that the correct
decisions can be made effectively and in a timely
manner so as to ensure that the best outcome is
achieved.
The starting point for any residential property
asset, is to understand the market that it is in and
what market value it might have. I say ‘might
have’ because until such time as buyers make
offers and negotiations are complete, no-one can
be absolutely assured of its true value. However,
through a robust market appraisal process, you
are able to attain a very accurate understanding
as to what the value is likely to be.
Move with Us compile a detailed appraisal of your
residential property asset with the help of
reputable local estate agents. Contained within the
report are details about the property itself,
including photographic evidences, street level and
local area comments that serve to highlight both
positive and negative factors that could affect
values, details of properties that have sold to
benchmark figures that have been achieved as
well as examples of properties that remain
available to purchase so that we can clearly
demonstrate the market that remains in the area.
The appraisals are HMRC compliant, contain a
local analysis of estate agent performance and
provide a value at date of death.
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Understanding your market
What can affect the outcome?
If your property asset is in a price sensitive and
declining market, the pricing and sales strategy
should be as competitive as possible and
understand the values being achieved in the local
area.
By doing this, you will be assured that your
property will be considered as a prospective
purchase by the buying audience. In this instance,
if you have employed the correct agents for this
property, who have a suitable applicant database,
a sale should be forthcoming within a reasonable
timescale.
If, however, your initial asking price is wrong
(perhaps taking advice from an agent who’s sole
intention is to win an instruction and a valued ‘For
Sale’ Board) then despite your best efforts and
seemingly proactive stance to marketing and
continued price reductions, you may find yourself
chasing the market rather than selling to it.
There tends to be a direct correlation between the
sale price that is achieved against the length of
time on the market. As can be seen in the graph
to the right, a property that begins out at the wrong
price (too high) can chase the market for a while
and appear to be proactive. However, even at the
point that it represents the right price, there is
likely to be some stigma associated to the
property as it may be regarded as “the one that
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Point of sale with
correct strategy
Point of sale with
the wrong strategy
V
a
l
u
e
X
Market
Values
Focussed
strategy
Too high
Y
Time on market
didn’t sell” or “the one that keeps dropping in
price”. As a result you tend to generate greater
interest from opportunist buyers who will only
overcome the apparent stigma by being able to
secure a bargain.
The bargain for the buyer simply represents a
significant loss to the estate and all beneficiaries.
It is evident in this case that the estate has
experienced a loss in value. The total loss is
represented by ‘X’, the amount below the price
achieved when employing the correct strategy.
‘Y’ represents the extra amount of time taken to
achieve a sale.
movewithusbusiness.co.uk
Static markets
What about a level market?
If your property asset is in a static market, the
pricing and sales strategy should still remain
accurate. In a market with values that remain
static, the time that a property remains available
will be key to a best outcome.
As such, the initial asking price should be set to
attract as many available buyers at the time of
going to market. By keeping these buyers, and
their budgets, in mind, you should aim to create a
sense of competition over the property. By so
doing, you should be able to secure a sale within a
reasonable timescale, whilst being assured that
you have managed to get the best price available
at the time. In some instances, you may be able
to achieve a sale at a level in excess of the
general market values due to the competitive
stance taken to the marketing strategy.
Point of sale with
correct strategy
Point of sale with
the wrong strategy
Market
Values
V
a
l
u
e
Competitive
strategy
X
Too high
Y
Time on market
In this instance the loss is represented by the
value of ‘X’ above as well as ‘Y’ which represents
the extra amount of time taken to achieve this
sale.
It can also be seen that should a beneficiary
decide to take a bullish view on marketing prices,
perhaps because they have no concerns over the
state of the current market, they could adversely
effect the values achieved for the estate. As
previously mentioned, time on market against
price achieved and the stigma that can surround a
property that doesn’t sell within the considered
‘right amount of time’ may have to reduce to below
the market value to achieve an eventual sale.
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Uplift in value
Is there an opportunity to
increase the value of a property?
Move with Us are constantly looking to maximise
values from residential property assets. In part,
this means the utilisation of considered marketing
strategies. However, there are often occasions
when an estate should also ask the question,
“what if?”
“Given that the property is known to be of local
importance and that there will be a significant
volume of interest, over and above that which
might be generated by a similar property within the
area, what if we took the property to auction?”
“We believe that the property could attain planning
consent. (This could be for conversion in to
apartments, or for the land to be granted planning
for additional dwellings.) What if we got planning
permission? Would it be worth more then?”
Despite the pressures to get a property sold, it is
sometimes worth considering all of the options as
the alternative outcomes could represent a
significant uplift in value.
Sending a property to auction is not the right
strategy for many properties, however, when the
circumstances are right, it is a sales tool worth
utilising.
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Consider a recent case study.
The open market value for a property in London
was indicated to be in the region of £500,000
However, it belonged to a well known local
character. Given the volume of local interest and
potential for inflated values to be achieved, an
initial marketing strategy was to set the asking
price at £750,000 and invite offers.
Many offers were presented to the estate. They
ranged from £550,000 to £700,000. It would have
been tempting to take the highest bid received in
November 2011.
Despite the interest, there was a chance that
planning permission could be granted to further
develop the site. With this in hand, the value
would rise further. The estate were provided with
the options to pursue the uplift, which they did.
In July 2012, the property, along with its’ planning
consent, were taken to auction. Move with Us
had put in to place a national marketing and PR
campaign to ensure that the auction would be a
success.
The Estate realised a value of £1,120,000 for the
property, representing an uplift of £420,000 for
the beneficiaries.
movewithusbusiness.co.uk
A greater market insight
What is the big picture?
You may find yourself the residuary beneficiary of
an estate containing a property that requires
selling. The estate administrator may have the
property marketing in hand, however, for whatever
reason, it may be taking too long.
The delay in finding a buyer could be for any
number of reasons. It may be that they have the
wrong choice of agents, they may be at the wrong
price, or they may be delaying selling the property
as they feel that “now is not really the best time to
sell”. The cost to the estate in these instances
can be significant.
In these instances supportive solutions and
evidences can be offered to the estate
administrators so as to demonstrate how they
could better handle the task. An in depth market
appraisal would be a great starting point for this.
You may find that you need to provide evidences
that show how much of a detriment the delay in
marketing has had on your legacy income. As
such, Move with Us can provide a pre history of
regional market data that will show to what extent
the market has changed over time. It may be that
you are able to re-appoint a more suitable
executor in their place, should the need arise.
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executorservices.co.uk
Control
Legacy Management
If you are in the position where you are to benefit
from the sale of a residential property, then you
will find a requirement for a robust, trusted,
auditable and cost effective solution.
Move with Us provide residential property
solutions to the majority of UK banks as well as
Trust companies, solicitors, charities and volume
legal services providers.
Our solutions serve to support the professional
and lay executors as well as Legacy Managers
who have been charged with the management of
an estate containing a residential property.
Whether the property requires selling, renting or
transferring, Move with Us ensure that compliant
solutions are available to secure greater control
over management, risk and timescales,
guaranteeing prompt distribution of funds.
We provide end to end support for all parties
involved in a residential property transaction. We
provide a single point of contact, eliminating the
need to search the internet for solutions or
answers.
By using a volume solutions provider, the costs of
managing residential property sales are reduced
for the estate thus ensuring greater residuary
values, whilst also achieving the best return for the
asset.
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By utilising the support of Move with Us you will
gain the following:
Solutions from a single point of contact
A Move with Us consultant will be your point of contact for
managing Estate Agents, electricians, plumbers, gardeners,
locksmiths, vacant property insurance, house clearance,
Energy Performance Certifications and Solicitors. We provide
you with an IT platform to help you manage your property
transactions as well as communicate with your consultant.
A £1,000 fund for disbursements per property
We enable you to provide more support to the situation by
providing a fund for the running costs of the property. This
can be used for maintenance and insurance requirements
and is only payable once the property has sold.
Market appraisal
A report that will help to manage expectation of all parties
involved providing comparable evidences, market analysis
and agent chooser data. HMRC (IHT) compliant.
Marketing strategy and planning
Your property consultant will provide and manage the
marketing of the property, handle multiple agents and
contractors.
Ensuring best outcome for all parties
Multiple agency marketing, public notices for all offers,
marketing up until exchange of contracts, maximum
exposure on property portals and independent support during
negotiations.
movewithusbusiness.co.uk
Don’t take our word for it
Testimonials
“Just a quick note to say thank you so very much
for everything you have done for me with regards
to the sale of my late Mums' house. It has been a
very difficult and often sad time for me but
throughout the whole process you were always
there to offer support and professional advice. You
continually reassured me that everything
would work out just fine and sure enough, it has.
Your regular phone calls kept me informed every
step of the way and cheered me up when I was
feeling low. I shall certainly miss them now that
Mums house has been sold.
I would, without any reservations, recommend the
service which you and your colleagues have
afforded me and I am in no doubt that we will use
your services when the time comes to sell our own
property.”
(R.A.J. (Beneficiary and Lay Executor) 27/03/2012)
“Executors / Administrators have a duty to
preserve the assets of an estate. When you are
administering an estate involving the sale of a
property it is vital to handle it in a way that ensures
the best return for the estate. Should beneficiaries
raise concerns or sow seeds of doubt it is reassuring to have evidence to hand to demonstrate
that best practice has been implemented. In my
experience, Move with Us provide services that
alleviate the challenges associated with the sale of
a probate property. In particular, the Move with Us
market appraisal is especially useful when dealing
with such matters.”
(Simon Crooks, Partner & Business Unit Director
Lifetime Planning at Ashton KCJ Solicitors) 19/01/2012
“I have today posted to you a card to thank you for
all the help that you gave in dealing with the sale of
Manor Farm Drive. You were like a candle burning
brightly in the darkness.
“I just wanted to say thanks you for your help with
the 2 recent sales – Hempfield Road Littleport &
Millgate St Methwold. Both went through
impressively quickly and the respective
beneficiaries are very pleased.”
I have followed your guide lines in giving advice to
my daughter in regard to selling her London flat
which has now been sold and she is coming back
to live in Australia.
Best Wishes Always”
(Katherine McIntyre LL.B FMIPW - Just Inheritance)
29/03/2012
(J. Simmons – Beneficiary) 28/03/2012
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We manage over 10,000 residential property valuations and in excess of
7,000 residential property sales each year. We currently have over 2,000
residential properties under rental management.
With 320 dedicated staff, we offer your teams UK coverage from a single
point of contact.
If you would like to discuss how Move with Us can assist your charity in the
future, please contact me to arrange a convenient time for us to meet.
Daniel Hamilton-Charlton
Business Development Manager
T : 01480 409 444
M: 07834 924 075
E: [email protected]
W: movewithusbusiness.co.uk
Property, properly.