For the purposes of our valuation, any effect on value of improvements carried out either by the current leaseholder or their predecessors in title should be disregarded. The valuation given reflects what is known as an ‘unimproved value’ of the flat. Furthermore, improvements are defined as additions or alterations which are not merely repairs or renewals and therefore items such as the installation of a new kitchen or bathroom, which are clearly renewals, would not be considered as improvements for the purposes of this valuation.
It is not the cost of any improvements which will be taken into account, but merely the effect on value. For example in the case of double glazing, it would not be the cost to install double glazing, (assuming it had not been installed previously), but the addition to the value of the property which is often far less than the original cost and in any case, depreciates yearly.
Discounts to value are therefore generally only considered in cases which increase floor area, or which modernise the fundamental elements of the property beyond the scope of expected maintenance. Again, what we also need to stress is that it is the increase to property value which is considered and not the actual cost of the works. Examples of improvements which would necessitate a discount would be items such as extensions to ground floor flats, or loft conversions to upper floor flats.