FLATS 3,6 & 9, OSBORNE MANSIONS, ST CATHERINES TERRACE, HOVE, BN3 2RH

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1 Your Ref: UKBN32RH 30 September 2018 The Directors PPNL SPV B26-1 Limited & PPNL SPV B26 Limited 15 Bishopsgate London EC2N 3AR Dear Sirs, FLATS 3,6 & 9, OSBORNE MANSIONS, ST CATHERINES TERRACE, HOVE, BN3 2RH In accordance with your instructions, we have carried out a quarterly desktop valuation of the above mentioned property. On the assumption that there have been no material changes to the property since the original inspection by Bramptons Surveyors on 7 September 2016, we are of the opinion that the bulk investment value of the subject properties is now in the region of 775,000 (Seven Hundred and Seventy Five Thousand Pounds). We are of the opinion that the aggregate Market Value of the subject properties with the benefit of vacant possession is now in the region of 885,000 (Eight Hundred and Eighty Five Thousand Pounds). For the avoidance of doubt, Allsop LLP have not undertaken an inspection of this property. Our opinion of value is on a desktop basis and should be regarded as indicative only. We also stress that we accept no liability in providing our opinion, nor does the content of this letter meet the requirements of the RICS Valuation Global Standards. Yours faithfully ANDREW M HUNT MA PGDIP MRICS (RICS NO ) Partner For Allsop LLP DL M E andrew.hunt@allsop.co.uk Property Consultants. Allsop is the trading name of Allsop LLP, a limited liability partnership, registered in England and Wales with number OC315531, whose registered office is at: 33 Wigmore Street, London W1U 1BZ. A list of members is available for inspection at this address. Regulated by RICS. Offices in West End, City, and Leeds. Allsop LLP 8 th Floor, Platform New Station Street Leeds LS1 4JB T +44 (0) F +44 (0)

2 Your Ref: UKBN32RH 8 March 2018 The Directors PPNL SPV B26-1 Limited & PPNL SPV B26 Limited 71 Queen Victoria Street London EC4V 4AY Dear Sirs, FLATS 3,6 & 9, OSBORNE MANSIONS, ST CATHERINES TERRACE, HOVE, BN3 2RH In accordance with your instructions, we have carried out a quarterly desktop valuation of the above mentioned property. On the assumption that there have been no material changes to the property since the original inspection by Bramptons Surveyors on 7 September 2016, we are of the opinion that the bulk investment value of the subject properties is now in the region of 770,000 (Seven Hundred and Seventy Thousand Pounds). We are of the opinion that the aggregate Market Value of the subject properties with the benefit of vacant possession is now in the region of 877,500 (Eight Hundred and Seventy Seven Thousand Five Hundred Pounds). For the avoidance of doubt, Allsop LLP have not undertaken an inspection of this property. Our opinion of value is on a desktop basis and should be regarded as indicative only. We also stress that we accept no liability in providing our opinion, nor does the content of this letter meet the requirements of the RICS Valuation Global Standards. Yours faithfully ANDREW M HUNT MA PGDIP MRICS (RICS NO ) Partner For Allsop LLP DL M E andrew.hunt@allsop.co.uk Property Consultants. Allsop is the trading name of Allsop LLP, a limited liability partnership, registered in England and Wales with number OC315531, whose registered office is at: 33 Wigmore Street, London W1U 1BZ. A list of members is available for inspection at this address. Regulated by RICS. Offices in West End, City, and Leeds. Allsop LLP 33 Park Place Leeds LS1 2RY T +44 (0) F +44 (0)

3 Your Ref: UKBN32RH 15 December 2017 The Directors PPNL SPV B26-1 Limited & PPNL SPV B26 Limited 71 Queen Victoria Street London EC4V 4AY Dear Sirs, FLATS 3,6 & 9, OSBORNE MANSIONS, ST CATHERINES TERRACE, HOVE, BN3 2RH In accordance with your instructions, we have carried out a quarterly desktop valuation of the above mentioned property. On the assumption that there have been no material changes to the property since the original inspection by Bramptons Surveyors on 7 September 2016, we are of the opinion that the bulk investment value of the subject properties is now in the region of 770,000 (Seven Hundred and Seventy Thousand Pounds). We are of the opinion that the aggregate Market Value of the subject properties with the benefit of vacant possession is now in the region of 855,000 (Eight Hundred and Fifty Five Thousand Pounds). For the avoidance of doubt, Allsop LLP have not undertaken an inspection of this property. Our opinion of value is on a desktop basis and should be regarded as indicative only. We also stress that we accept no liability in providing our opinion, nor does the content of this letter meet the requirements of the RICS Valuation Global Standards. Yours faithfully ANDREW M HUNT MA PGDIP MRICS (RICS NO ) Partner For Allsop LLP DL M E andrew.hunt@allsop.co.uk Property Consultants. Allsop is the trading name of Allsop LLP, a limited liability partnership, registered in England and Wales with number OC315531, whose registered office is at: 33 Wigmore Street, London W1U 1BZ. A list of members is available for inspection at this address. Regulated by RICS. Offices in West End, City, and Leeds. Allsop LLP 33 Park Place Leeds LS1 2RY T +44 (0) F +44 (0)

4 B R A M P T O N S Chartered Surveyors & Valuers 338 Hook Road Chessington Surrey KT9 1NU Tel/Fax: davidambrose@mail.com D. Ambrose MRICS 14 th September 2017 The Directors PPNL SPV B26-1 Limited and PPNL SPV B26 Limited 71 Queen Victoria Street Ref: DA/val/ B26 London EC4V 4AY Dear Sirs, Re: FLATS 3, 6 & 9, OSBORNE MANSIONS, ST. CATHERINE TERRACE, HOVE, BN3 2RH We refer to your recent instructions requesting us to carry out a desk-top valuation of the above mentioned property. On the assumption that there have been no material changes to the property since the original inspection on 28 th October 2016, we are of the opinion that the bulk investment value of the subject properties is now in the region of 767,000 (Seven Hundred & Sixty Seven Thousand Pounds) We are of the opinion that the aggregate market value of the subject properties with the benefit of vacant possession is now in the region of 834,000 (Eight Hundred & Thirty Four Thousand Pounds) We trust that the contents of this letter are satisfactory for your purposes. Yours faithfully, D. Ambrose, MRICS Bramptons

5 B R A M P T O N S Chartered Surveyors & Valuers 338 Hook Road Chessington Surrey KT9 1NU Tel/Fax: davidambrose@mail.com D. Ambrose MRICS 9 th June 2017 The Directors PPNL SPV B26-1 Limited and PPNL SPV B26 Limited 71 Queen Victoria Street Ref: DA/val/ B26 London EC4V 4AY Dear Sirs, Re: FLATS 3, 6 & 9, OSBORNE MANSIONS, ST. CATHERINE TERRACE, HOVE, BN3 2RH We refer to your recent instructions requesting us to carry out a desk-top valuation of the above mentioned property. On the assumption that there have been no material changes to the property since the original inspection on 28 th October 2016, we are of the opinion that the bulk investment value of the subject properties is now in the region of 764,000 (Seven Hundred & Sixty Four Thousand Pounds) We are of the opinion that the aggregate market value of the subject properties with the benefit of vacant possession is now in the region of 831,000 (Eight Hundred & Thirty One Thousand Pounds) We trust that the contents of this letter are satisfactory for your purposes. Yours faithfully, D. Ambrose, MRICS Bramptons

6 B R A M P T O N S Chartered Surveyors & Valuers 338 Hook Road Chessington Surrey KT9 1NU Tel/Fax: davidambrose@mail.com D. Ambrose MRICS 7 th March 2017 The Directors PPNL SPV B26-1 Limited and PPNL SPV B26 Limited 71 Queen Victoria Street Ref: DA/val/ B26 London EC4V 4AY Dear Sirs, Re: FLATS 3, 6 & 9, OSBORNE MANSIONS, ST. CATHERINE TERRACE, HOVE, BN3 2RH We refer to your recent instructions requesting us to carry out a desk-top valuation of the above mentioned property. On the assumption that there have been no material changes to the property since the original inspection, we are of the opinion that the bulk investment value of the subject properties is now in the region of 761,000 (Seven Hundred & Sixty Thousand Pounds) We are of the opinion that the aggregate market value of the subject properties with the benefit of vacant possession is now in the region of 828,000 (Eight Hundred & Twenty Eight Thousand Pounds) We trust that the contents of this letter are satisfactory for your purposes. Yours faithfully, D. Ambrose, MRICS Bramptons

7 B R A M P T O N S Chartered Surveyors & Valuers 338 Hook Road Chessington Surrey KT9 1NU Tel/Fax: davidambrose@mail.com D. Ambrose MRICS 2 nd December 2016 The Directors PPNL SPV B26-1 Limited and PPNL SPV B26 Limited 71 Queen Victoria Street Ref: DA/val/pptr London EC4V 4AY Dear Sirs, Re: Flats 3, 6 and 9, Osborne Mansions, St Catherines Terrace, Hove, BN3 2RH Further to your e mail instructions to provide a current desk-top valuation we can report to you as follows:- For these purposes the date of valuation is the date of this report and assume that the condition of the property has not changed since we inspected and carried out a HomeBuyer Report in September The valuation is a Market Valuation (MV) with the benefit of vacant possession and defined as: The estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion. In arriving at our valuation we have considered current market conditions, similar property for sale on the open market and recent sales and completions. The subject properties comprise of three newly converted 2-bedroom flats in this five storey end terrace Victorian mansion house formerly the Sussex Hotel that has been converted into 11 flats. It is located on the corner of St Catherine s Terrace/Osborne Villas close to the sea front and town centre. It is our considered opinion that the Market Value (MV) and Investment Value (IV) of the subject properties can be fairly expressed in the sum of:- Market Value with Vacant Possession 825,000 Freehold (Eight Hundred & Twenty Five Thousand Pounds) Bulk Investment Value 758,000 Freehold (Seven Hundred & Fifty Eight Thousand Pounds) We trust that this report provides sufficient information for your purposes. Yours faithfully, D. Ambrose, MRICS Bramptons

8 Flats 3,6 & 9 Osborne Mansions St Catherines Terrace Hove BN3 2RH Client's name London House Exchange Date of inspection 5th September 2016

9 2 A Introduction to the report B About the inspection C Overall opinion and summary of the condition ratings D About the property E Outside the property F Inside the property G Services H Grounds (including shared areas for flats) I Issues for your legal advisers J Risks K Valuation L Surveyor's declaration What to do now Description of the RICS HomeBuyer Service Typical house diagram RICS is the world's leading qualification when it comes to professional standards in land, property and construction. In a world where more and more people, governments, banks and commercial organisations demand greater certainty of professional standards and ethics, attaining RICS status is the recognised mark of property professionalism. Over 100,000 property professionals working in the major established and emerging economies of the world have already recognised the importance of securing RICS status by becoming members. RICS is an independent professional body originally established in the UK by Royal Charter. Since 1868, RICS has been committed to setting and upholding the highest standards of excellence and integrity providing impartial, authoritative advice on key issues affecting businesses and society. The RICS HomeBuyer Report is reproduced with the permission of the Royal Institution of Chartered Surveyors who owns the copyright RICS

10 3 This HomeBuyer Report is produced by an RICS surveyor who has written this report for you to use. If you decide not to act on the advice in this report, you do this at your own risk. The HomeBuyer Report aims to help you: make a reasoned and informed decision on whether to go ahead with buying the property; make an informed decision on what is a reasonable price to pay for the property; take account of any repairs or replacements the property needs; and consider what further advice you should take before committing to purchase the property. Any extra services we provide that are not covered by the terms and conditions of this report must be covered by a separate contract. If you want to complain about the service, please refer to the complaints handling procedure in the 'Description of the RICS HomeBuyer Service' at the back of this report.

11 4 Surveyor's name David Ambrose Surveyor's RICS number Company name Bramptons Date of the inspection 5th September 2016 Report reference number Osborne Mansions Related party disclosure I have no links with the transaction. I am not aware that there is a conflict of interest as defined in the RICS Valuation of Standards and Rules of Conduct. Full address and postcode of the property Flats 3,6 & 9 Osborne Mansions St Catherines Terrace Hove BN3 2RH Weather conditions when the inspection took place Drizzle with fog The status of the property when the inspection took place The properties were in the process of refurbishment. Flat number 9 was near complete. Flats 3 & 6 required further works and floor coverings laid.

12 5 We inspect the inside and outside of the main building and all permanent outbuildings, but we do not force or open up the fabric. We also inspect the parts of the electricity, gas/oil, water, heating and drainage services that can be seen, but we do not test them. To help describe the condition of the home, we give condition ratings to the main parts (the 'elements') of the building, garage and some parts outside. Some elements can be made up of several different parts. In the element boxes in parts E, F, G and H, we describe the part that has the worst condition rating first and then briefly outline the condition of the other parts. The condition ratings are described as follows. Defects that are serious and/or need to be repaired, replaced or investigated urgently. Defects that need repairing or replacing but are not considered to be either serious or urgent. The property must be maintained in the normal way. No repair is currently needed. The property must be maintained in the normal way. Not inspected (see 'Important note' below). The report covers matters that, in the surveyor's opinion, need to be dealt with or may affect the value of the property. Important note: We carry out only a visual inspection. This means that we do not take up carpets, floor coverings or floorboards, move furniture or remove the contents of cupboards. Also, we do not remove secured panels or undo electrical fittings. We inspect roofs, chimneys and other surfaces on the outside of the building from ground level and, if necessary, from neighbouring public property and with the help of binoculars. We inspect the roof structure from inside the roof space if there is access (although we do not move or lift insulation material, stored goods or other contents). We examine floor surfaces and under floor spaces so far as there is safe access to these (although we do not move or lift furniture, floor coverings or other contents). We are not able to assess the condition of the inside of any chimney, boiler or other flues. We note in our report if we are not able to check any parts of the property that the inspection would normally cover. If we are concerned about these parts, the report will tell you about any further investigations that are needed. We do not report on the cost of any work to put right defects or make recommendations on how these repairs should be carried out. Some maintenance and repairs we suggest may be expensive. Please read the 'Description of the RICS HomeBuyer Report Service' (at the back of this report) for details of what is, and is not, inspected.

13 6 This section provides our overall opinion of the property, and summarises the condition ratings of the different elements of the property. If an element is made up of a number of different parts (for example, a pitched roof to the main building and a flat roof to an extension), only the part in the worst condition is shown here. To make sure you get a balanced impression of the property, we strongly recommend that you read all sections of the report, in particular the 'What to do now' section. Our overall opinion of the property The subject block comprises of a substantial five storey end of terrace Victorian mansion house (formally the Sussex Hotel) on the corner of St Catherines Terrace and Osborne Villas that has been converted and partially extended to provide 11 flats, set amongst similar properties in a predominantly residential area. We understand that you are purchasing 3 two bedroom flats (No's 3, 6 and 9) on a leasehold basis with a 94 years unexpired at a 50 ground rent per annum. Flats 3, 6 and 9 incur a service charge of 600 pa, The flats and common parts were in the process of internal refurbishment. There will be several items requiring attention prior to purchase. Flat 9 was near completion and had fitted carpets at time of inspection. Flats 3 & 6 required further works to complete. We have since been informed that these have been completed prior to exchange. The front elevation of the block has been decorated but part of the rear elevations and external staircase are to be repaired/decorated in due course. There are no grounds to the property and there is limited parking which is restricted to residents with limited metered parking in neighbouring roads. The subject block does require some updating and modernising together with elements of repair to the external fabric of the building. We located several high damp readings to external walls in flats 6 and 9 with visible damp stains which are likely caused by defective render. There is some substantial cracking around the rear staircase together with generally poor condition of iron goods which require further attention than the decoration solely proposed. Similarly it appears that previous cracking and defective rendered sections have been painted over which has not cured the water ingress found on our inspection. The previously painted rainwater goods require an overhaul. However, it should be noted that this repair work is typically dealt with on a communal basis under the service charge. We discuss all elements within the main body of this report. Section of the report Element number Element name E Outside the property E4 Main walls E5 E8 Windows Other joinery and finishes

14 7 F Inside the property F3 Walls and partitions Section of the report Element number Element name E Outside the property E1 Chimney stacks E3 E6 Rainwater pipes and gutters Outside doors F Inside the property F2 Ceilings F4 F5 F9 G3 G6 Floors Fireplaces, chimney breasts and flues Other Water Drainage Section of the report Element number Element name E Outside the property E9 Other F Inside the property F6 Built in fittings F7 F8 Woodwork Bathroom fittings G Services G7 Common services

15 8 Type of property Five storey victorian house converted into 11 flats Approximate year the property was built 1900 Approximate year the property was extended Not known solicitors to verify Approximate year the property was converted Not known solicitors to verify Information relevant to flats and maisonettes Accommodation Floor Living rooms Bedrooms Bath or shower Separate toilet Kitchen Utility room Conservatory Other Name of other Lower ground Ground First Second Third Other Roof space Construction Solid brick construction with rendered elevations under pitched slate covered roof surfaces. The floors are of suspended timber joists and board construction and the windows are single glazed timber sash or casement style units.

16 9 Energy We have not prepared the Energy Performance Certificate (EPC). If we have seen the EPC, then we will present the ratings here. We have not checked these ratings and so cannot comment on their accuracy. We are advised that the property's current energy performance, as recorded in the EPC, is: Energy efficiency rating Not known Solictors to verify Environmental impact rating Not known Solictors to verify Mains services The marked boxes show that the mains services are present. Gas Electricity Water Drainage Central heating Gas Electric Solid fuel Oil None Other services or energy sources (including feed in tariffs) None. Grounds None. Internal communal areas with iron staircase providing access to rear. Location Located on the corner of St Catherines Terrace (Kingsway A259) and Osborne Villas. There are excellent shopping facilities nearby in Church Road and Hove/Brighton town centres all within easy reach of transport connections and an overground train station with access to London. Facilities It is in a good residential area with access to the town centres with main roads and over ground train stations, local shopping and amenities.

17 10 Local environment Your solicitors will do the normal searches and enquiries and provide an environmental report upon the surrounding area. We are not aware of any specific issues affecting the subject property but your solicitors will inform you on this point. The property is set back approximately 200M from the sea front.

18 11 Limitations to inspection Asbestos may be present for example in roofing felts, boarding materials externally and internally, textured surface finishes and floor tiles. The exact nature of the material can only be determined by laboratory testing and there are potential health risks stemming from the inhalation of asbestos fibres and working with this material. Further advice is available from the Local Authority or the Health & Safety Executive. Specialist advice should be sought before carrying out any work to these components. The cost of removal of asbestos would be high if discovered. See Section J3 Risks. E1 Chimney stacks Chimney stacks are visible to the roof surface which are substantial rendered brick stacks with terracotta chimney pots and appear to still be servicing the various flats. They are built of substantial construction and we noted that some of the pots are open which should have storm cowls fitted to the chimneys that are not used to prevent water ingress. No clear view could be made of the chimney stacks from ground level inspection but we did note some rust staining to the left hand stacks which should be decorated. We assume that any problems relating to roof defects, flashings etc. are dealt with on a communal basis but your solicitor should check this point by reference to the lease terms. Internally within the properties, there are chimney breasts evident but many of these have been sealed. Where this occurs they should be vented if there is no ventilation at roof level and/or capping. Due to the condition of the upper floor render, we would anticipate some water ingress around these stacks but without access to top floor flats this can not be confirmed. We would recommend that these be reported on in due course as part of the external repair programme currently carried out as there are likely repairs required to the render, cement flaunchings, pots and/or flashings where they pass the roof surface. If any of the chimneys are to be used we would suggest that you do consult a chimney specialist in this regard to ensure that they can be used safely. E2 Roof coverings The view of the roof is limited from ground level inspection. A timber framed dormer provides accommodation to the penthouse flats weathered in pvc cladding under a timber deck covered flat roof with asphalt or fibreglass covering. There are lead lined aprons above bays and rendered string courses. Internally we have identified some areas of dampness in flats 6 & 9 but such defects appear to relate to the condition of the external render. We would recommend that you make enquiries of the vendors and managing agents whether there have been any problems relating to the roof which resulted in a new covering and also whether there is any form of guarantee. We cannot really form any proper opinion of the roofs without obviously inspecting them. E3 Rainwater pipes and gutters The rain water disposal system comprises of metal hoppers and down pipes draining rain water from the main roofs to ground gullies. They appear to be in fair condition overall and we assume that this aspect is maintained by the owners or current managing agents. We would just mention that there are some blockages evident in the down pipes (Osborne Villas elevation) which should be cleared immediately to prevent water penetration issues

19 12 within flats. However, this is typical given the age and construction of the building. We further noted some waste pipes discharging into the hoppers which is not recommended as they should be within a sealed system. It is important that the rainwater goods are thoroughly serviced periodically and enquiries should be made on this point. It was not raining at time of inspection and the integrity of the goods can not be warranted without further testing. As we have already mentioned, there are visible defects and blockages in the system that require further investigation and remedy. E4 Main walls The properties are constructed in attractive solid stock brickwork with painted stucco detailing and rendered elevations which are painted. Attractive rendered string courses appear at each level and there is decorative work around the windows and at roof level where there are corbels to the underside of the eaves, typical architectural features of this period. The construction detail is good although you will appreciate that no close view was possible from ground level inspection. It is evident that the front and flank elevations have been painted within recent times, although there are signs of cracking in the render which have not been repaired and there are likely 'live' (blown) sections of render surrounding these fractures. We obtained several high damp readings internally to external walls, notably in flats 6 & 9. The rear elevations are in the process of external decoration, but again the cracks and any blown render have not been repaired sufficiently which has allowed water to penetrate. There is evidence of a climbing ivy plant to the unpainted elevations which may have exacerbated the condition of any existing cracks but we have been informed that this has now been cleared prior to decoration. The inner leaf of the external walls have been decorated but this will deteriorate rapidly (particularly during inclement weather) if the external element is not cured sufficiently. The condition of the external joinery and cill junctions with the render are poor which also contribute to damp internal conditions. We have been informed that this has been rectified prior to exchange. Again, external repair and decoration required. Generally, the flats have not been particularly well refurbished with a minimum of expenditure on both internal and external works and are fairly basic and there will be fairly substantial costs to ensure that the structure is water tight and well decorated. An iron staircase extends to the rear of the block providing access from the common part landings at certain levels. This is in poor condition and requires substantial repair together with decoration. Where it has been set in the external walls, large cracks have developed and it is possible that these are evident internally but this can not be confirmed as the walls have been lined in plasterboard which obscures the condition of the wall surface. More substantial cracks that show internally (through cracking) denotes possible structural defects and it would be recommended that a structural engineer inspects these areas and provides a report on the cracking and suitability of the external staircase together with any remedial actions required. We have since been informed that a specialist has been instructed to provide a report upon its condition and the Vendor is obligated to comply with the findings at their own expense. Other than where mentioned above, we saw no major signs of defect through cracking or bulging of the brickwork which might have suggested some problems with subsidence or

20 13 other ground problems but we would recommend that your solicitors do check with the vendors and managing agents that there have been no past incidence of any claims for subsidence or other ground movement problems and confirm that the property does have normal insurance cover. We would have thought that if there were any problems in the past, these would have been highlighted by now. Please note: Subsidence, ground heave and/or other forms of ground movement can occur at any time and we can not state for sure that the property will be unaffected in the future. Subsidence can be a result of seasonal factors as well as other external items affecting the soil under the foundations. These include : Drying out and shrinkage of soils (predominantly clay), softening and deterioration of soils by leaking drains, collapsing of mine workings or natural cavities and nearby trees (roots) which are water seeking. We can not state that the property will be unaffected by subsidence and similar ground movements in the future. You should have your solicitors make relevant enquiries regarding any past problems prior to purchase. The only method to confirm the structural integrity of the drainage system is via CCTV drains survey as this can not be warranted from external inspection. The property would have incorporated a damp proof course which is designed to prevent dampness rising from the soil causing damp internal conditions to the basement and lower ground floor flats. This of course has a more direct bearing upon flats at that level but it is likely that the leases of the individual flats each share some of the cost should it be necessary to carry out any remedial works in regard to dampness. We have been unable to access the lower level flats to see whether there are any such problems. We list the isolated areas where we obtained high damp readings but be aware that not all areas were tested: Flat 9 Living Room around bay and beneath cills. To front/flank wall junction. Bedroom two around window opening and surrounding areas of external wall. Bathroom Unable to test due to wall coverings. Some dampness around ceiling near door where there appears to be a chimney stack. Flat 6 Kitchen External wall left hand side of basin. Bathroom Leak to stopcock. Rear wall around window opening and surrounding areas. Bedroom Rear wall. Flat 3 Kitchen Rear wall surrounding boiler. Since our inspection we have been informed that the Vendor has been informed of these items. Solicitors to verify that the building complies in all respects to planning consents and building regulation approvals. The common parts should have had a recent fire risk assessment and asbestos survey carried out which your solicitors will confirm. E5 Windows The windows are a combination of the original timber single glazed sash windows and timber single glazed casement/fixed panes to the rear elevation. It is evident that many of these have not been used within recent times and have been painted shut. Again, the

21 14 external elements have not been well decorated and it is possible that there are rot repairs required externally. The units that could be opened revealed unpainted frames and cills which should be carried out in due course. We have since been informed that the windows have been overhauled and repaired to allow adequate ventilation in every room. It is likely that all units require some form of repair and decoration together with general adjustments to ensure ease of opening. The sash cords appear sound but have not been tested substantially. There are obvious improvements that can be made (modern double glazing) which would improve the insulation and thermal efficiency rating of the property. E6 Outside doors (including patio doors) The communal entrance door is a painted solid timber panelled door and works on an entry phone system which has not been tested. There are further part glazed doors with push bar panic levers leading to the iron staircase at the rear of the block accessed via common part landings on certain levels. These opened sufficiently and again would benefit from decoration. Similar comments as in E5. E7 Conservatory and porches None to the subject property. E8 Other joinery and finishes We have mentioned the poor condition of the render which is causing water penetration and damp internal conditions. We noted that the rendered junction detailing with the window cills are poor. We have been informed that the Vendor shall complete these works prior to exchange. We have already alerted you to the current poor condition of the external rear iron staircase and there are several heavily rusted sections together with wall/render cracking surrounding wall brackets which require immediate attention. We would recommend that the condition of the staircase and structural integrity of both the stairs and walls is confirmed via structural engineer report prior to any recommended repairs and decorative works. The poor condition of the stairs is obviously exacerbated by the salts in the air which is a common defect in properties close to the seafront. Further investigation required which may be substantial in terms of costs. We have since been informed that a specialist has visited and the findings of their report will be passed to the Vendor to rectify at their own expense. E9 Other We understand that flats 3, 6 & 9 pay 600 pa service charge each with additional contributions for any major works to external elements and common parts. Solicitors to advise this point and whether there are any impending major works proposed other than the works recommended in this report. The regularity of the service charge will be governed by the terms of the lease and also by any requirements that are necessary for immediate repairs. We are unaware of whether there is currently a management company who deal with the maintenance. Your solicitors will advise on this aspect and also confirm the current level of service charge in terms of general maintenance. Apart from normal insurance of the block there is cleaning and lighting of common parts, maintenance and repair to service roads, external lighting and maintenance work to the communal grounds in terms of expenditure.

22 15 Your solicitor should also confirm that the property does comply with all statutory requirements.

23 16 Limitations to inspection Material containing asbestos are present in many buildings of this age, often enclosed and unexposed. Asbestos may be present in roofing felt, floor tile, boarding materials externally and internally, textured surface finishes and tiling. The exact nature of the material can only be determined by laboratory testing. There are potential health risks stemming from the inhalation of asbestos fibres and from working with this material. Major works or removal can only be carried out by licensed contractors. Further advice is available from the Local Authority or the Health & Safety Executive. Specialist advice should be sought before carrying out any works to these components. The cost of removal may be high. See Section J3 Risks. F1 Roof structure We have been unable to examine the roof structure but it is evident from external inspection that the slate cladded dormer has been renewed with a shiplap fibre glass board presumably incorporating insulation. For these purposes therefore we are classifying it as not inspected. F2 Ceilings The ceilings within the flats comprise of the original lath and plaster which appear to have been skimmed with plaster or lined and painted throughout. There also appears to be some newer style plasterboard ceilings. Many rooms incorporate the original cornices which provide pleasant architectural detailing. You should be aware that when decoration is taking place, it is not uncommon for the original lime plaster to come away due to the fact that it becomes brittle with age. F3 Walls and partitions The internal walls and partitions comprise of brick and/or block partitions with plastered surfaces and have either been papered or painted with tiling in wet rooms. We do stress the fact that lime plaster does become brittle with age and on redecoration you should anticipate areas of re plastering. We have already discussed the water penetration through defective render which obviously requires external remedy prior to internal repair and decoration. It is impossible to be specific as to the amount of re plastering that will be required to the property but certainly this should be budgeted for amongst refurbishment costings. We particularly noted some substantial cracking and blown render around the external staircase to the rear of the block which we have recommended further investigation. The inner leafs of this wall have been dry lined in the common parts which obscures the condition of the original wall. If cracking is evident beneath, it may denote structural cracking to the external walls or structural movement but this can not be confirmed without further investigation and damage to the wall coverings currently in situ. As we have said, the external walls do incorporate a damp proof course and during the course of our survey we took a sample of meter readings with an electronic moisture meter to all external walls to check on moisture content. We did locate high dampness within some of the upper flats as already mentioned in E4 but these are due to the poor condition of render and standard of decoration.

24 17 F4 Floor The flooring to the property comprises of suspended joist and timber boarding with some fitted coverings in position. Flat 9 is near completion with carpets and lino to wet rooms. The flooring is reasonably level to the majority and quite rigid and does not stress or deflect unnecessarily when subjected to any impact loading. The timber floor joists were normally over designed so that they were quite strong in this type of property. Flats 3 & 6 are yet to be covered and have a hardboard laid throughout. Obviously we cannot see clearly the condition of the floor timbers to check whether there are any problems with woodworm or other timber infestation which may have been subject of treatments in the past. In absence of satisfactory answers to the contrary, we do recommend that you examine the condition of the timber flooring and to arrange for a specialist timber treatment company to carry out preservative treatment if required. We would have thought that any defects in the flooring would have been dealt with during refurbishment works. F5 Fireplaces, chimney breasts and flues There are chimney stacks evident throughout the flats which have been sealed as they are not currently being used. Where sealed, these should be vented to prevent condensation developing in the flue lining particularly as there appears several open pots at roof level. The chimney stacks are still evident at roof level and we assume that they extend within above flats. We would imagine that these fireplaces could be opened up if so desired and utilised but we do stress that you should seek the advice of a specialist in this regard. We have also recommended that the external elements be checked and reported on together with costings for any works recommended as some dampness is expected around the chimneys at top floor level relating to the condition of the render. We also found an isolated area of dampness in the bathroom (flat 9) which appears to be a chimney stack. Further investigation required. F6 Built in fittings (built in kitchen and other fittings, not including appliances) Kitchen the kitchen units are modern comprising of gloss wall and base units with worktops and space for appliances although these have not been fitted. You should enquire whether these will form part of the purchase. Living Room/Bedroom Fittings There are fitted cupboards within bedrooms which are fairly basic yet serviceable. The cupboards (dressing area) leading to the bathrooms house the water meters and/or stopcocks. F7 Woodwork (for example, staircase and joinery) The internal woodwork to the subject property is fairly basic with moulded architraves and skirting boards and panelled doors. Again, these items are basic with scope for improvement and modernising. Some decoration is required to the joinery items and flat entrance doors. F8 Bathroom fittings The bathroom fittings are again modern and have been installed within recent times. These have not been tested substantially. There are shower attachments above the baths with basin and close coupled WC. Again, there are some items that require completion such as lights, blinds and shower screens which no doubt are in hand but you should have this confirmed. The light fittings are quite dated in the wet rooms which should be tested and

25 18 reported on as part of the overall electrical installation. See section G1 further investigation required. There are separate cloakrooms/wc in the hallways with close coupled WC, basins and fan extractors in the ceilings which should have isolators. Again, the goods have not been thoroughly tested nor have the flats been lived in since refurbishment. F9 Other We must draw to your attention the fact that the common parts should have a fire risk assessment and also an asbestos survey carried out within recent times which would have been the responsibility of the landlords or managing agents solicitors to verify. We noted that there are controlled lighting and Fireline protection system with several alarms to common parts and it should be verified that these are tested regularly as part of the aforementioned fire assessment and are fully operational. There is a internal lift within the common parts which appears to have been installed or serviced by Ascent Lift Services LTD ( ). This has not been tested and should have been serviced within recent times as part of the periodic maintenance of the block. Solicitors to verify this point.

26 19 Services are generally hidden within the construction of the property. This means that we can only inspect the visible parts of the available services, and we do not carry out specialist tests. The visual inspection cannot assess the services to make sure they work efficiently and safely, and meet modern standards. Limitations to inspection No specific tests have been carried out as this is beyond our remit but where necessary we have advised separate tests by specialist contractors. G1 Electricity Safety warning: The Electrical Safety Council recommends that you should get a registered electrician to check the property and its electrical fittings at least every ten years, or on change of occupancy. All electrical installation work undertaken after 1 January 2005 should have appropriate certification. For more advice contact the Electrical Safety Council. The block is connected to the mains electrical supply and the incoming electrical head together with the meters for individual flats are situated in the base cupboard in the common parts hallway. The fuse boards or consumer units are located within individual flats in small base cupboards adjacent to entrance doors and it is apparent that the electrics are of the old ceramic variety and there is much surface run wiring. The wiring does not comply with the IEE recommendations and we do anticipate that the properties will require re wiring. We do recommend that you instruct a qualified NIC EIC electrician to examine the wiring and provide a periodic report upon the installations together with an estimate for the required works. It is recommended that domestic installations are inspected at least once every five to ten years or on the change of occupancy. There is undoubtedly some wiring works required to bring the flats up to current day standards which will incur relatively large expenditure and disturbance to wall/ceiling coverings. No test certificates were available for inspection during the course of our survey which constitutes a safety hazard (See Section J3). As we have already mentioned, we would recommend that the wiring is examined by a suitably qualified electrician to provide a periodic report upon the condition of the wiring and also the suitability of the lighting within the bathroom areas. We would also recommend modern smoke alarms wired into the mains supply. The fire prevention system items in the common parts have not been tested and it is obviously important that this has been serviced at regular intervals. Similarly the internal lift has not been tested and should have been serviced within recent times. Further investigation required. G2 Gas/oil Safety warning: All gas and oil appliances and equipment should regularly be inspected, tested, maintained and serviced by a registered 'competent person' and in line with the manufacturer's instructions. This is important to make sure that the equipment is working correctly, to limit the risk of fire and carbon monoxide poisoning and to prevent carbon dioxide and other greenhouse gases from leaking into the air. For more advice contact the Gas Safe Register for gas installations, and OFTEC for oil installations. Gas is supplied to the property and the gas meters were within common part cupboards on entry. There are gas fired boilers and gas hobs within each flat and you should confirm that

27 20 these have been maintained and serviced on an annual basis and that there are certificates available for Gas Safety. Absence of such test certificates constitutes a safety hazard for the purposes of this survey (See Section J3). Further investigation required. G3 Water The property is connected to the mains supply and we would imagine there is some form of incoming mains and stopcock in the common parts but your solicitors will verify this point and also the material used as there will be further costs involved if the supply is still in lead. There are stopcocks within each flat in the dressing area cupboard adjacent to the bathroom where there are also meters to flat 6 & 9. You should confirm the position of the water meter in flat 3. We noted that there was a leak around the stopcock in flat 6 which we have been informed has been repaired. Within the flats, there are no water storage tanks as the combination style boilers work directly off of mains supply to give heating and also hot water on a demand basis when taps are turned. It is important that the heating systems are treated with rust inhibiters on an annual basis as the build up of sludge can clog the pipes causing problems with the heating system inefficiencies. The connections we saw were in copper and there are plastic and lead waste pipes which should ideally be replaced. The water pressure appeared to be reasonable at the various supply points in the kitchen and bathrooms although the goods have been recently installed and have not yet been tested thoroughly as the properties have not been lived in. In absence of recent inspection or testing, it is our view that it would be sensible to have a competent plumber or heating engineer examine the heating/plumbing installations in due course and provide a report (with recommendations) whether any works are required at this stage. G4 Heating The flats are centrally heated by way of a wall mounted combination boilers (Vokera in flat 9, Worcester Greenstar 28i Junior in flats 3 & 6) which vent externally through the external walls by way of flues. There are thermostats controlling the general level of temperature. Heating is supplied via copper piping to pressed steel radiators within the habitable rooms. Some of the radiators have thermostatic valves for individual control of the temperature. The boilers are relatively good brands with reasonably good energy efficiency ratings. We have already mentioned under the heading of water that it is a good idea to have a rust inhibitor within the system on a regular basis and enquiries should be ongoing. It is important that they are regularly maintained and serviced on an basis and enquiries should be made on that particular point and confirmation sought. In the absence of such confirmation we would recommend that a suitably qualified engineer does examine the boiler systems together with all associated ancillary gear including the radiators and pipework and report upon their condition and whether any updating is required. The absence of a Gas Safety certificate constitutes a safety hazard for the purpose of this report (See Section J3). Further investigation required. G5 Water heating We have already mentioned that the supply of hot water is on a demand basis when taps are turned. Similar comments apply as noted in G4. Further investigation required.

28 21 G6 Drainage Below ground level drainage the property is connected to the main underground sewer within the road and we assume that the drainage has been fully adopted by the Local Authority. Soil and waste water are drained externally via soil and vent pipes (150mm wide) which can be seen to the rear elevation and discharge directly into the underground drainage system. Any manholes situated around the building could not be seen clearly due to the staircase. We assume that any particular problem with the drainage would be a shared item but your solicitor should check that particular point. The integrity of the drainage system can only be ascertained by way of a CCTV survey. We do not think that a survey of that type is warranted in this particular case as we would have thought that any drainage problems would have been flagged up by other flat owners. It is important that a survey has been carried out within fairly recent time and in absence of such, it would be prudent to have one carried out to confirm the integrity of the system and any obvious issues at current time. Above ground level drainage the bathroom and kitchen waste pipes drain to external soil and vent pipes to the rear elevation which discharge to the underground drainage. They did appear to be in reasonable condition as far as we could tell from our inspection and vent above roof level. G7 Common services We imagine that the common services include the lift, fire prevention system, common part lighting and cleaning together with any ground works required but your solicitors will check this particular point. The common parts were in the process of decoration where the subject flats are located.

29 22 Limitations to inspection We were able to inspect the grounds to the subject property on a visual inspection only. H1 Garage None to the subject property. There is limited permit and meter parking on the road and neighbouring roads. H2 Other No other external buildings of note. The lower ground/basement demises were not available for inspection. H3 General We were informed that the flats are leasehold with a head lease of 94 yrs unexpired but your solicitors will confirm all aspects of this. It would be prudent for your solicitors to check the general level of service charges and exactly what is covered. The pathway leading in and the rear staircase are maintenance issues and of course there is the general upkeep of the grounds and also the common part areas we have already discussed in the report as further investigation and repair is required. Important: Although there were no obvious signs of Japanese knotweed, we were not able to access all areas and also the neighbouring properties demises. We refer you to the comments below: Japanese knotweed is a non native invasive plant, which is a notifiable weed, and has spread throughout the country particularly along railway embankments and motorways etc. It has quite an amazing spreading capacity even through hostile terrain. Its difficult to eradicate needing excavation of the soil and specialist treatment afterwards. Some lenders (banks and building societies) will not accept properties with Japanese knotweed as a security and this is a very important consideration. As part of the Homebuyers Report of the property we cannot guarantee that the property and grounds are free of Japanese knotweed particularly as it dies away in the winter months and we recommend that you take other specialist advice regarding any possible infestation prior to commitment to purchase.

30 23 We do not act as 'the legal adviser' and will not comment on any legal documents. However, if during the inspection we identify issues that your legal advisers may need to investigate further, we may refer to these in the report (for example, check whether there is a warranty covering replacement windows). I1 Regulation We would recommend that your solicitors ensure that the building complies in all respects with statutory requirements regulations and in particular that there has been a fire risk assessment carried out to the property and also that an asbestos check has been carried out I2 Guarantees We are not aware that there are any guarantees in existence for the subject property but your solicitors will confirm possibly for the roof works to the slate cladded dormer. I3 Other matters We would recommend that your solicitors find out the general level of maintenance charges currently levied which we understand to be 600 pa. to each flat. We would also draw to your attention the following matters: G6 Drainage we assume that the drainage has been adopted by the Local Authority but this point requires to be checked. Should there be any problem with blockages on site you should establish as to who is responsible for clearing the blockage and also the cost. H3 Boundary Ownership your solicitors will confirm the extent of the boundaries and whether you have any liabilities for maintenance.

31 24 This section summarises defects and issues that present a risk to the building or grounds, or a safety risk to people. These may have been reported and condition rated against more than one part of the property or may be of a more general nature, having existed for some time and which cannot be reasonably changed. J1 Risks to the building In terms of risks to the building we would draw to your attention the following points: G1/G2/G4/G5 Electrical/Gas/Heating/Hot Water Systems we have recommended that a test certificate be obtained in absence of current test certificates. Further electrical works are required to bring the installations up to current day standards. E4 & E8 Defects to iron staircase to the rear elevation which is being investigated. J2 Risks to the grounds We are not aware of any risks in this regard but your solicitors will advise on this aspect following receipt of the environmental report. J3 Risks to people Please see the advice given in the main report. For further advice please see the comments referred to below: E5 Windows All windows are single glazed. E8 External staircase is being investigated and associated repair. G1/G2/G4/G5 Electric/Gas/Heating/Water Heating lack of a suitable test certificate. J4 Other None.

32 25 In my opinion the Market Value on 5th September 2016 as inspected was: 825,000 ( 275,000 each flat) with vacant possession Eight Hundred and Twenty Five Thousand Pounds (amount in words) Tenure Leasehold Area of property (sq m) 168 sq m on a gross external basis (GEA) In my opinion the current reinstatement cost of the property (see note below) is: 250,000 Two Hundred and Fifty Thousand Pounds (amount in words) In arriving at my valuation, I made the following assumptions. With regard to the materials, construction, services, fixtures and fittings, and so on I have assumed that: an inspection of those parts that I could not inspect would not identify significant defects or a cause to alter the valuation; no dangerous or damaging materials or building techniques have been used in the property; there is no contamination in or from the ground, and the ground has not been used as landfill; the property is connected to, and has the right to use, the mains services mentioned in the report; and the valuation does not take account of any furnishings, removable fittings or sales incentives. With regard to legal matters I have assumed that: the property is sold with 'vacant possession' (your legal advisers can give you more information on this term); the condition of the property, or the purpose the property is or will be used for, does not break any laws; no particularly troublesome or unusual restrictions apply to the property, that the property is not affected by problems which would be revealed by the usual legal inquiries and that all necessary planning permissions and Building Regulations consents (including consents for alterations) have been obtained and complied with; and the property has the right to use the mains services on normal terms, and that the sewers, mains services and roads giving access to the property have been 'adopted' (that is, they are under local authority, not private, control). Any additional assumptions relating to the valuation That the three flats are leasehold and with vacant possession. We are of the opinion that the aggregate vacant possession value of the flats is 825,000 We are of the opinion that the bulk investment value is 755,000 Your legal advisers, and other people who carry out property conveyancing, should be familiar with these assumptions and are responsible for checking those concerning legal matters. My opinion of the Market Value shown here could be affected by the outcome of the enquiries by your legal advisers (section I) and/or any further investigations and quotations for repairs or replacements. The valuation assumes that your legal advisers will receive satisfactory replies to their enquiries about any assumptions in the report.

33 26 Other considerations affecting value Subject to points made in our report and good title. Note: You can find information about the assumptions I have made in calculating this reinstatement cost in the 'Description of the RICS HomeBuyer Service' provided. The reinstatement cost is the cost of rebuilding an average home of the type and style inspected to its existing standard using modern materials and techniques, and by acting in line with current Building Regulations and other legal requirements. This will help you decide on the amount of buildings insurance cover you will need for the property.

34 27 "I confirm that I have inspected the property and prepared this report, and the Market Value given in the report." Signature Surveyor's RICS number Qualifications MRICS For and on behalf of Company Address Bramptons 338 Hook Road Town Chessington County Surrey Postcode KT9 1NU Phone number Website Fax number david@bramptons.org Client's name London House Exchange Date this report was produced RICS Disclaimers 7th September This report has been prepared by a surveyor ('the Employee') on behalf of a firm or company of surveyors ('the Employer'). The statements and opinions expressed in this report are expressed on behalf of the Employer, who accepts full responsibility for these. Without prejudice and separately to the above, the Employee will have no personal liability in respect of any statements and opinions contained in this report, which shall at all times remain the sole responsibility of the Employer to the exclusion of the Employee. In the case of sole practitioners, the surveyor may sign the report in his or her own name unless the surveyor operates as a sole trader limited liability company. To the extent that any part of this notification is a restriction of liability within the meaning of the Unfair Contract Terms Act 1977 it does not apply to death or personal injury resulting from negligence. 2. This document is issued in blank form by the Royal Institution of Chartered Surveyors (RICS) and is available only to parties who have signed a licence agreement with RICS. RICS gives no representations or warranties, express or implied, and no responsibility or liability is accepted for the accuracy or completeness of the information inserted in the document or any other written or oral information given to any interested party or its advisers. Any such liability is expressly disclaimed. Please read the 'Description of the RICS HomeBuyer Report Service' (at the back of this report) for details of what is, and is not, inspected.

35 28 Getting quotations The cost of repairs may influence the amount you are prepared to pay for the property. Before you make a legal commitment to buy the property, you should get reports and quotations for all the repairs and further investigations the surveyor may have identified. You should get at least two quotations from experienced contractors who are properly insured. You should also: ask them for references from people they have worked for; describe in writing exactly what you will want them to do; and get the contractors to put the quotations in writing. Some repairs will need contractors with specialist skills and who are members of regulated organisations (for example, electricians, gas engineers, plumbers and so on). Some work may also need you to get Building Regulations permission or planning permission from your local authority. Further investigations If the surveyor is concerned about the condition of a hidden part of the building, could only see part of a defect or does not have the specialist knowledge to assess part of the property fully, the surveyor may have recommended that further investigations should be carried out to discover the true extent of the problem. Who you should use for these further investigations You should ask an appropriately qualified person, though it is not possible to tell you which one. Specialists belonging to different types of organisations will be able to do this. For example, qualified electricians can belong to five different government approved schemes. If you want further advice, please contact the surveyor. What the further investigations will involve This will depend on the type of problem, but to do this properly, parts of the home may have to be disturbed and so you should discuss this matter with the current owner. In some cases, the cost of investigation may be high. When to do the work The condition ratings help describe the urgency of the repair and replacement work. The following summary may help you decide when to do the work. Condition rating 2 repairs should be done soon. Exactly when will depend on the type of problem, but it usually does not have to be done right away. Many repairs could wait weeks or months, giving you time to organise suitable reports and quotations. Condition rating 3 repairs should be done as soon as possible. The speed of your response will depend on the nature of the problem. For example, repairs to a badly leaking roof or a dangerous gas boiler need to be carried out within a matter of hours, while other less important critical repairs could wait for a few days. Warning Although repairs of elements with a condition rating 2 are not considered urgent, if they are not addressed they may develop into defects needing more serious repairs. Flat roofs and gutters are typical examples. These can quickly get worse without warning and result in serious leaks. As a result, you should regularly check elements with a condition rating 2 to make sure they are not getting worse.

36 29 The service The RICS HomeBuyer Service includes: an inspection of the property (see 'The inspection'); a report based on the inspection (see 'The report'); and a valuation, which is part of the report (see 'The valuation'). The surveyor who provides the RICS HomeBuyer Service aims to give you professional advice to help you to: make an informed decision on whether to go ahead with buying the property; make an informed decision on what is a reasonable price to pay for the property; take account of any repairs or replacements the property needs; and consider what further advice you should take before committing to purchase the property. The inspection The surveyor inspects the inside and outside of the main building and all permanent outbuildings, but does not force or open up the fabric. This means that the surveyor does not take up carpets, floor coverings or floorboards, move furniture, remove the contents of cupboards, roof spaces, etc., remove secured panels and/or hatches or undo electrical fittings. If necessary, the surveyor carries out parts of the inspection when standing at ground level from public property next door where accessible. The surveyor may use equipment such as a damp meter, binoculars and torch, and may use a ladder for flat roofs and for hatches no more than 3 metres above level ground (outside) or floor surfaces (inside) if it is safe to do so. Services to the property Services are generally hidden within the construction of the property. This means that only the visible parts of the available services can be inspected, and the surveyor does not carry out specialist tests. The visual inspection cannot assess the efficiency or safety of electrical, gas or other energy sources; plumbing, heating or drainage installations (or whether they meet current regulations); or the inside condition of any chimney, boiler or other flue. Outside the property The surveyor inspects the condition of boundary walls, fences, permanent outbuildings and areas in common (shared) use. To inspect these areas, the surveyor walks around the grounds and any neighbouring public property where access can be obtained. Buildings with swimming pools and sports facilities are also treated as permanent outbuildings, but the surveyor does not report on the leisure facilities, such as the pool itself and its equipment, landscaping and other facilities (for example, tennis courts and temporary outbuildings). Flats When inspecting flats, the surveyor assesses the general condition of outside surfaces of the building, as well as its access areas (for example, shared hallways and staircases). The surveyor inspects roof spaces only if they are accessible from within the property. The surveyor does not inspect drains, lifts, fire alarms and security systems. Dangerous materials, contamination and environmental issues The surveyor does not make any enquiries about contamination or other environmental dangers. However, if the surveyor suspects a problem, he or she should recommend a further investigation. The surveyor may assume that no harmful or dangerous materials have been used in the construction, and does not have a duty to justify making this assumption. However, if the inspection shows that these materials have been used, the surveyor must report this and ask for further instructions. The surveyor does not carry out an asbestos inspection and does not act as an asbestos inspector when inspecting properties that may fall within the Control of Asbestos Regulations With flats, the surveyor assumes that there is a 'dutyholder' (as defined in the regulations), and that in place are an asbestos register and an effective management plan which does not present a significant risk to health or need any immediate payment. The surveyor does not consult the dutyholder. The report The surveyor produces a report of the inspection for you to use, but cannot accept any liability if it is used by anyone else. If you decide not to act on the advice in the report, you do this at your own risk. The report focuses on matters that, in the surveyor's opinion, may affect the value of the property if they are not addressed. The report is in a standard format and includes the following sections. A Introduction to the report B About the inspection C Overall opinion and summary of the condition ratings D About the property E Outside the property F Inside the property G Services H Grounds (including shared areas for flats) I Issues for your legal advisers J Risks K Valuation L Surveyor's declaration What to do now Description of the RICS HomeBuyer Service Typical house diagram Condition ratings The surveyor gives condition ratings to the main parts (the 'elements') of the main building, garage and some outside elements. The condition ratings are described as follows. Condition rating 3 defects that are serious and/or need to be repaired, replaced or investigated urgently. Condition rating 2 defects that need repairing or replacing but are not considered to be either serious or urgent. The property must be maintained in the normal way. Condition rating 1 no repair is currently needed. The property must be maintained in the normal way. NI not inspected. The surveyor notes in the report if it was not possible to check any parts of the property that the inspection would normally cover. If the surveyor is concerned about these parts, the report tells you about any further investigations that are needed. The surveyor does not report on the cost of any work to put right defects or make recommendations on how these repairs should be carried out. However, there is general advice in the 'What to do now' section at the end of the report. Energy The surveyor has not prepared the Energy Performance Certificate (EPC) as part of the RICS HomeBuyer Service for the property. If the surveyor has seen the current EPC, he or she will present the energy efficiency and environmental impact ratings in this report. The surveyor does not check the ratings and cannot comment on their accuracy. Issues for legal advisers The surveyor does not act as 'the legal adviser' and does not comment on any legal documents. If, during the inspection, the surveyor identifies issues that your legal advisers may need to investigate further, the surveyor may refer to these in the report (for example, check whether there is a warranty covering replacement windows). Continued...

37 30 Risks This section summarises defects and issues that present a risk to the building or grounds, or a safety risk to people. These may have been reported and condition rated against more than one part of the property or may be of a more general nature, having existed for some time and which cannot reasonably be changed. If the property is leasehold, the surveyor gives you general advice and details of questions you should ask your legal advisers. The valuation The surveyor gives an opinion on both the Market Value of the property and the reinstatement cost at the time of the inspection (see the 'Reinstatement cost' section). Market Value 'Market Value' is the estimated amount for which a property should exchange, on the date of the valuation between a willing buyer and a willing seller, in an arm's length transaction after the property was properly marketed wherein the parties had each acted knowledgeably, prudently and without compulsion. When deciding on the Market Value, the surveyor also makes the following assumptions. The materials, construction, services, fixtures and fittings, and so on The surveyor assumes that: an inspection of those parts that have not yet been inspected would not identify significant defects or cause the surveyor to alter the valuation; no dangerous or damaging materials or building techniques have been used in the property; there is no contamination in or from the ground, and the ground has not been used as landfill; the property is connected to, and has the right to use, the mains services mentioned in the report; and the valuation does not take account of any furnishings, removable fittings and sales incentives of any description. Legal matters The surveyor assumes that: the property is sold with 'vacant possession' (your legal advisers can give you more information on this term); the condition of the property, or the purpose that the property is or will be used for, does not break any laws; no particularly troublesome or unusual restrictions apply to the property, that the property is not affected by problems which would be revealed by the usual legal enquiries and that all necessary planning and Building Regulations permissions (including permission to make alterations) have been obtained and any works undertaken comply with such permissions; and the property has the right to use the mains services on normal terms, and that the sewers, mains services and roads giving access to the property have been 'adopted' (that is, they are under local authority, not private, control). The surveyor reports any more assumptions that have been made or found not to apply. If the property is leasehold, the general advice referred to earlier explains what other assumptions the surveyor has made. Reinstatement cost Reinstatement cost is the cost of rebuilding an average home of the type and style inspected to its existing standard using modern materials and techniques and in line with current Building Regulations and other legal requirements. This includes the cost of rebuilding any garage, boundary or retaining walls and permanent outbuildings, and clearing the site. It also includes professional fees, but does not include VAT (except on fees). The reinstatement cost helps you decide on the amount of buildings insurance cover you will need for the property. Standard terms of engagement 1 The service the surveyor provides the standard RICS HomeBuyer Service ('the service') described in the 'Description of the RICS HomeBuyer Service', unless you and the surveyor agree in writing before the inspection that the surveyor will provide extra services. Any extra service will require separate terms of engagement to be entered into with the surveyor. Examples of extra services include: costing of repairs; schedules of works; supervision of works; re inspection; detailed specific issue reports; and market valuation (after repairs). 2 The surveyor the service is to be provided by an AssocRICS, MRICS or FRICS member of the Royal Institution of Chartered Surveyors, who has the skills, knowledge and experience to survey, value and report on the property. 3 Before the inspection you tell the surveyor if there is already an agreed, or proposed, price for the property, and if you have any particular concerns (such as plans for extension) about the property. 4 Terms of payment you agree to pay the surveyor's fee and any other charges agreed in writing. 5 Cancelling this contract you are entitled to cancel this contract by giving notice to the surveyor's office at any time before the day of the inspection. The surveyor does not provide the service (and reports this to you as soon as possible) if, after arriving at the property, the surveyor decides that: (a) (b) he or she lacks enough specialist knowledge of the method of construction used to build the property; or it would be in your best interests to have a building survey and a valuation, rather than the RICS HomeBuyer Service. If you cancel this contract, the surveyor will refund any money you have paid for the service, except for any reasonable expenses. If the surveyor cancels this contract, he or she will explain the reason to you. 6 Liability the report is provided for your use, and the surveyor cannot accept responsibility if it used, or relied upon, by anyone else. Complaints handling procedure The surveyor will have a complaints handling procedure and will give you a copy if you ask. Note: These terms form part of the contract between you and the surveyor. This report is for use in England, Wales, Northern Ireland, Channel Islands and Isle of Man.

38 31 This diagram illustrates where you may find some of the building elements referred to in the report.