Farleigh Hill, Tovil, , ME15 6RG

Valuation Report

by

Farleigh Hill, Tovil, Maidstone, Kent ME15 6RG Report on Indicative Asking Prices & Marketing

1) Instructions

RPC Land and New Homes have been requested to provide a written opinion as to the likely asking prices with vacant possession of the properties listed in the Schedule of Accommodation below.

2) Client’s Name

3) Property Name and Address

Farleigh Hill, Tovil, Maidstone, Kent ME15 6RG

4) Tenure

Freehold

5) Purpose of the Report

The purpose of this report is to inform you of the likely sale prices of the completed development in order to allow you to put forward an offer for the site/property. It is not for any secured lending or financial purposes.

This report does not purport to express an opinion or advise upon the conditions of the property when completed and should not be taken as making any implied representation or statement about such. We have not been able to provide any assurances of the condition of any services, but for the purpose of this report we have presumed that the completed properties will be correctly constructed, finished to a good specification, the fittings are correctly fitted, have been tested, and are in good working order.

6) Date of Report

12 th April 2013

7) Basis of Opinion

We have based our opinion of achievable and asking prices on local market conditions which we have researched and analysed as set out below and the general state of the housing market at the present time.

8) Date and Extent of The Inspection

The proposed site has been inspected from the roadside.

9) Information

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We have had sight of proposed site plans and accommodation schedule for the consented scheme.

10) Property Description/Schedule of Accommodation

The proposed scheme is on the site of a former quarry situated at the top of Farleigh Hill in the southern outskirts of Tovil, Maidstone. The site is c. 15.5 acres and adjoins open countryside to the south and with its elevated position benefits from far reaching views over Maidstone and beyond to the north.

Tovil provides local shopping facilities with Tesco and Lidl both within 0.25miles of the site. Maidstone Town Centre, approximately 1.3miles distant, can be reached easily on foot, by bus or by car and provides a wide range of Views over Maidstone to north shops, services, restaurants and leisure facilities. Maidstone has 3 train stations with regular services to Victoria (via Maidstone East) in less than 1 hour and there is currently a trial service from Maidstone West providing high-speed trains to London St Pancras in 47 minutes. Maidstone also has good road links with junction 6 of the M20 only 3 miles north.

Tovil is a convenient location for access into Maidstone town centre. However, the site on Farleigh Hill itself is on the more semi-rural southern edge of Tovil on the boundary with Hill/Dean Street to south Farleigh so we would consider this to be an advantage.

The proposed scheme has outline planning consent for a varied residential development of around 272 units comprising 1 & 2 bedroom apartments, and 2, 3 & 4 bedroom houses.

Tesco in Tovil

11) Any Restrictions, Planning, Environmental or Other Issues

We are not aware of any restrictions, planning, environmental or other issues.

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12) Market Conditions

The housing market remains challenging following the recent recession and wider well documented difficulties within the UK and EU economies, although the Government in the recent Budget have announced a welcome boost for the market over the next 2-3 years.

In general the sale of new homes through 2011 can be characterised as slow and steady with a pickup in activity during 2012. Market confidence is still relatively weak, although prices do appear to have stabilised and there is less evidence of developers reducing headline prices, even though they continue to offer a broad range of incentives in order to encourage sales.

The first quarter of 2013 has been similar for sales in comparison to the same period the previous year, however there are still a good number of enquiries being generated. The market is still fragmented with demand and sales holding up reasonably well for higher value properties, but a weaker market exists for those properties aimed at and suitable for first time buyers. This part of the market does appear to be attracting small scale property investors, particularly for new build homes, which is driven by the perceived value in housing coupled with a strong rental market.

The mortgage market for first time buyers is still limited with lenders reserving their best deals for customers with equity and those requiring a low loan to value ratio. First time buyers are still having to provide large deposits and in many cases can only secure a loan with high arrangement fees and high interest rates. The difficulties in saving a deposit and these increased costs to purchase mean that many potential first time buyers are not in a position to proceed.

The Government has been attempting to ease the affordability issue with the introduction of the ‘First Buy’ shared equity scheme in 2012 and many developers are offering this along with their own in-house schemes of a similar nature. In addition to this, the new Help to Buy scheme unveiled in the Budget last month, broadens out this incentive to include all home movers, as well as first time buyers and should be available from next year. Some of the above difficulties may therefore ease over the coming months with the Government Budget announcement.

13) Pricing Methodology

We have assessed the likely prices of your proposed scheme on a comparable basis using evidence from new builds and second hand homes in the local area.

With regards to the apartments, the closest comparable new build development in location is The Point built by Weston Homes off Eccleston Road. The Point is now all sold and was a fairly large scheme consisting of 3 & 4 bedroom townhouses and 1 & 2 bedroom apartments fronting the with many of the units benefitting from views of the river and the The Point

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landscaped communal areas. When the development was initially released in 2007, asking prices for the 2 bedroom apartments at 607sq ft – 734sq ft were in the region of £205,000 to £230,000 with these asking prices being achieved in the main, with very little discount or incentives being offered. As you are aware, the market for apartments and in general, then declined significantly and prices for the same apartments, some of which can be seen on the second hand market for resale, are now being offered in the region of £140,000 to £150,000.

The Blue Quarter by Kier (originally marketed as Bellwinch Homes) which is situated on the opposite side of the River Medway in Hart Street is another fairly large scheme of apartments which opened in 2007. This development offers the most up to date sales in a comparable location. They are nearing the end of the scheme and are currently marketing 2 bedroom apartments at 680 sq ft, 752sq ft and 843sq ft at between £144,995 and £174,995. They are utilising the First Buy, New Buy and Fair Share schemes to Blue Quarter assist sales.

TaylorWimpey’s development at Watermill Grange, Loose Road, sold a block of 2 bedroom apartments during 2012-2013 with sizes ranging from 702sq ft to 724sq ft and achieved between £123,950 and £142,817, again utilising the First Buy and New Buy schemes.

With regards to the houses, there are various new homes developments throughout Maidstone at present and that Watermill Grange apartments have completed recently that we have considered in our pricing, however we believe that one of the closest comparable developments in location would be Redrow’s Sutton Woods development off Sutton Road on the southeast side of Maidstone, as there is a large amount of ex-local authority housing and some commercial units in close proximity, similar to Tovil.

With regards to the second hand market, we believe this is the best comparable evidence for sales prices achievable for the houses on this side of Tovil as there are many fairly new houses, i.e. built within the last 10 years or so, in close proximity to the proposed scheme that can be utilised. The 3 bedroom houses locally generally appear to lack en-suites and are smaller in overall size than the ones proposed on the new scheme so we feel that the new homes will have an advantage over the second hand market in this respect. The 2 beds at 803sq ft are a little oversized for the area as in the second hand market, and generally in new build for Maidstone, these are around 620-700sq ft. These units could perhaps be reduced slightly in size and still achieve around the same prices.

There have been many new build apartments built in Maidstone in general within the last ten years or so which have, at times, flooded the market and reduced

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saleability due to supply far outweighing demand, or ability to purchase, particularly by first time buyers. This overload of new build apartments seems to have calmed, however many of these units can now be found on the second hand market and will provide competition for any further new build. Some of the original new build apartments at The Point and Blue Quarter can be found on the market along with other fairly new build apartments that have been completed within the last 5 to 7 years or so. These of course give good comparable second hand evidence and we have included examples of these below for your information.

14) Assumptions and Caveats

In making the report the following assumptions have been made: a) That the property is not subject to any unusual or especially onerous restrictions, encumbrances or outgoings and that good title can be shown. b) That the property and the asking prices are unaffected by any matters which would be revealed by a local search and replies to the usual enquiries or by statutory notice and that neither the property nor its condition nor its intended use is or will be unlawful. c) That the property complies with all planning, building, fire precaution/means of escape and public health Statutes, Regulations and Bye-laws. d) That there are no undisclosed matters that would materially affect our opinion as to the asking price of the property. e) We have made no investigation as to contamination on the site and have assumed that none is present of a type or quantity that would affect the asking price. f) As we have been unable to carry out a proper site inspection, we have assumed that there is no presence of any hazard or item that would affect the asking price.

15) Opinion of Asking Price

At the time of writing this report we have had sight of outlined proposed site plans and accommodation schedule for the consented scheme. We have not seen any detailed floor plans for any of the proposed house types so have made general assumptions based upon the GIA sq ft provided. We have also assumed a good level of specification and finish when considering our pricing.

We have attached a schedule of suggested pricing for your consideration. As you are no doubt aware purchasers today are looking for the best possible deal and developers therefore have to consider incentives in the form of stamp duty paid, 5% deposit paid, carpets etc. We have therefore shown our suggested pricing as a range to take these dealing margins into account. This price range also takes into account differentials in garden sizes, aspect, house type, i.e. semi-detached, end terrace, terrace, etc on those house types not specified in the accommodation schedule and also the potential views that some plots will benefit from that cannot be verified at this stage.

16) Marketing

RPC is a specialist Residential Development Land Consultancy and New Homes Marketing Agent. Established in 1999, the company has offices in Mid Kent, West Kent and Thames Gateway covering Kent, East Sussex and South East London.

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We work closely with both land owners and developers ranging from single plots to sites for hundreds of units.

Our New Homes agency concentrates solely on the sale of brand new homes and converted properties and consequently has an in-depth and thorough knowledge of all aspects of the new homes market throughout the region.

Should you proceed with the proposed scheme, RPC can offer you a comprehensive marketing service tailored to your requirements. Our Sales Director, Sue Taylor, will contact you within the next few days to discuss the report and your future requirements.

17) General

This report and the indication of asking prices shall be for the private and confidential use of the client for whom it has been prepared and is intended for their use only and for the purpose requested. Any advice contained or attached is given purely as guidance unless otherwise explicitly stated. Our views on price are not intended as a formal valuation and should not be relied upon as such.

This report may not be reproduced in whole or in part or relied upon by third parties for any use without the express written authority of RPC Land New Homes.

This report in whole or part must not be published electronically transmitted or referred to in any document circular or statement without the express written authority of RPC Land and New Homes.

Name Dawn Taylor, Valuations Consultant Signed

Company RPC Land and New Homes Address 158 High Street, Tonbridge, Kent TN9 1BB Telephone 01732 363633 Dated 12 th April 2013

Authorised by Peter Randall – Managing Director Signed

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Farleigh Hill, Tovil, Maidstone, Kent

Unit No. of GIA Sq Suggested Type Description Parking units Ft Price £s psf Low High Low High A 2 bed terraced house 1 parking space 25 803 £155,000 £165,000 £193 £205 B 3 bed terraced house 1 parking space 55 923 £180,000 £190,000 £195 £206 C3 3 bed terraced house 1 parking space 58 989 £185,000 £200,000 £187 £202 4 bed terrace/semi-det Attached garage & C4 house parking 25 1341 £240,000 £260,000 £179 £194 D 2 bed apartment 1 parking space 68 597 £115,000 £125,000 £193 £209 E 1 bed apartment 1 parking space 16 508 £100,000 £110,000 £197 £217 Attached garage & F 4 bed link-det townhouse parking 11 1737 £290,000 £310,000 £167 £178 Attached garage & G 4 bed detached house parking 14 1360 £270,000 £280,000 £199 £206

272 GDV £46,895,000 £50,265,000

referred to in any document, circular or statement, our written approval as to the form and contents of such publication should be obtained.

Please note that any advice contained or attached in this document is informal and given purely as guidance unless otherwise explicitly stated. Our views on price are not intended as a formal valuation and should not be relied upon as such. They are given in the course of our estate agency role. No liability is given to any third party and the figures suggested are in accordance with valuation standard 1.1 and 1.2 of RICS Valuation Standards – Global and UK, effective from 2 nd May 2011. Any advice attached is not a formal (‘Red Book’) valuation, and neither RPC Land & New Homes nor the author can accept any responsibility to any third party who may seek to rely upon it, as a whole or any part as such. If formal advice is required this will be explicitly stated along with our understanding of limitations and purpose.

www.rpclandandnewhomes.co.uk We sell 100’s of new homes a year 8 Market Research

Kier Homes - Blue Quarter, Hart Street, Maidstone Unit No. Sold Date Address Type Beds Sold Price Incentives Sq Ft £ per sq ft 03/12 - 05/12 Plot 1, Level 1 Block A Flat 2 £150,000 Show Home 662 £227

03/12 - 05/12 Plot 4, Level 2 Block A Flat 2 £149,995 First Buy 662 £227 03/12 - 05/12 Plot 7, Level 3 Block A Flat 2 £149,995 First Buy 662 £227 03/12 - 05/12 Plot 10, Level 4 Block A Flat 2 £140,000 Cash Purchaser 662 £211 03/12 - 05/12 Plot 22, Level 2 Block A Flat 2 £159,995 First Buy 680 £235

03/12 - 05/12 Plot 30, Level 2 Block A Flat 2 £159,995 First Buy 679 £236

03/12 - 05/12 Plot 42, Level 3 Block A Flat 2 £170,000 793 £214 03/12 - 05/12 Plot 118, Level 1 Block C Flat 2 £174,950 First Buy 746 £235

N.B. Plots sold on First Buy show headline prices without incentive cost being taken into account . These are not net sales prices.

Taylor Wimpey – Watermill Grange, Loose Road, Maidstone Unit No. Asking Approximate Sq Sold Date Address Type Beds Price Sold Price Ft £ per sq ft Jan 2013 Plot 3 Telford House Flat 2 £126,000 £123,950 702 £176 Jan 2013 Plot 12 Telford House Flat 2 £139,500 £126,450 702 £180 Jan 2013 Plot 14 Telford House Flat 2 £142,500 £131,600 724 £181 Jan 2013 Plot 13 Telford House Flat 2 £142,995 £135,326 703 £192 Jan 2013 Plot 15 Telford House Flat 2 £142,750 £131,530 702 £187 Jan 2013 Plot 17 Telford House Flat 2 £142,500 £128,580 724 £177 Feb 2013 Plot 83 Delamere Terraced 3 £230,995 £193,111 1086 £177 Nov 2012 Plot 107 Delamere Terraced 3 £205,995 £194,609 1086 £179

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Weston Homes – The Point, Eccleston Road, Maidstone Unit No. Approximate Sq Sold Date Address Type Beds Sold Price Unit Value Ft £ per sq ft 10-Jun-11 23,Cornhill Place, Maidstone, Kent ME15 6GX Flat 2 £155,000 £147,250 663 £222 10-Jun-11 2,Cornhill Place, Maidstone, Kent ME15 6GX Flat 2 £167,500 £159,125 730 £218 25-May-11 37,Cornhill Place, Maidstone, Kent ME15 6GX Flat 2 £170,000 £161,500 698 £231 20-May-11 34,Cornhill Place, Maidstone, Kent ME15 6GX Flat 2 £165,000 £156,750 698 £225 21-Apr-11 36,Cornhill Place, Maidstone, Kent ME15 6GX Flat 2 £180,000 £171,000 730 £234 21-Apr-11 24,Cornhill Place, Maidstone, Kent ME15 6GX Flat 2 £155,000 £147,250 669 £220 18-Apr-11 19,Cornhill Place, Maidstone, Kent ME15 6GX Flat 2 £175,000 £166,250 698 £238 08-Apr-11 32,Cornhill Place, Maidstone, Kent ME15 6GX Flat 2 £150,000 £142,500 663 £215 04-Apr-11 16,Cornhill Place, Maidstone, Kent ME15 6GX Flat 2 £165,000 £156,750 698 £225 18-Mar-11 28,Cornhill Place, Maidstone, Kent ME15 6GX Flat 2 £169,500 £161,025 698 £231 10-Mar-11 7,Cornhill Place, Maidstone, Kent ME15 6GX Flat 2 £150,000 £142,500 698 £204 04-Mar-11 39,Cornhill Place, Maidstone, Kent ME15 6GX Flat 2 £240,000 £228,000 1012 £225 03-Mar-11 20,Cornhill Place, Maidstone, Kent ME15 6GX Flat 2 £155,000 £147,250 664 £222 25-Feb-11 27,Cornhill Place, Maidstone, Kent ME15 6GX Flat 2 £193,500 £183,825 730 £252

Redrow – Sutton Woods, Maidstone (Sold prices Jan – Apr 2013) Unit No. Asking Approximate Sq Sold Date Address Type Beds Price Sold Price Ft £ per sq ft Plot 235 Apartment Apt 2 £139,995 £135,332 661 £204 816 £247 Plot 183 Broadway Semi-det 3 £212,995 £202,345 Plot 192 Kenilworth Semi-det 3 £229,995 £222,405 1095 £203 Plot 193 Broadway EOT 3 £199,995 £180,495 816 £221 Plot 84 Evesham MT 2 £177,995 £172,121 680 £253 Plot 86 Evesham EOT 2 £182,995 £179,956 680 £264

www.rpclandandnewhomes.co.uk We sell 100’s of new homes a year 10 Second Hand Comparables

Property address : 5 Postmill Drive, Tovil, ME15 6FY Unit Type Unit size Sold Price Date sold £s psf 3 bed end terrace, 771sq ft £175,000 Dec 2012 £226 conservatory

Property address: 36 Bridge Mill Way, Tovil, ME15 6FD Unit Type Unit size Sold price Date sold £s psf 3 bed link- 773sq ft £192,500 Nov 2012 £249 detached, garage and driveway

Property address: 57 Farleigh Hill, Tovil ME15 6AA Unit Type Unit size Sold price Date sold £s psf 4 bed townhouse, £195,000 Nov 2012 2 en-suites, carport

Property address : 19 The Tail Race, Tovil, ME15 6YL Unit Type Unit size Sold price Date sold £s psf 3 bed semi-det, 929sq ft £178,000 Oct 2012 garage, inc conservatory garage

Property address : 32 The Tail Race, Tovil, ME15 6YL Unit Type Unit size Sold price Date sold £s psf 3 bed semi-det, 715sq ft £198,000 Aug 2012 £276 garage

Property address : 9 Passmore Way, Tovil ME15 6DZ Unit Type Unit size Sold price Date sold £s psf 3 bed semi-det, 916sq ft £224,500 May 2012 £245 carport and garage

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Property address : 11 Albert Reed Gardens, Tovil ME15 6JY Unit Type Unit size Sold price Date sold £s psf 3 bed detached, 1010sq ft £195,000 Mar 2012 £193 garage, en-suite.

Garden backs onto commercial units.

Property address : 30 Postmill Drive, Tovil ME15 6FY Unit Type Unit size Sold price Date sold £s psf 2 bed mid terrace, 614sq ft £145,000 Feb 2012 £236 2 pkg spaces

Property address : 3 The Spillway, Tovil ME15 6FE Unit Type Unit size Sold price Date sold £s psf 2 bed mid terrace, 614sq ft £152,500 Sep 2011 £248 parking

Property address : 1 Flood Hatch, Tovil ME15 6FY Unit Type Unit size Sold price Date sold £s psf 2 bed mid terrace, c. 650sq £163,000 Dec 2012 £250 conservatory ft

Property address : 2 Albert Reed Gardens, Tovil ME15 6JY Unit Type Unit size Sold price Date sold £s psf 4 bed detached, 1406 £260,000 Oct 2011 £184 driveway parking

Property address : 6 Albert Reed Gardens, Tovil ME15 6JY Unit Type Unit size Sold price Date sold £s psf 4 bed detached, 1350 £250,000 Aug 2011 £185 converted garage. driveway parking

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Property address : 6 Cornhill Place, Maidstone (The Point) Unit Type Unit size Sold Price Date sold £s psf 2 bed apt with c. 720 sq £143,200 Jan 2013 £198 balcony. En- ft

suite.Parking.

Property address: 28 Stafford Gardens, Maidstone (The Point) Unit Type Unit size Sold price Date sold £s psf 2 bed apt with c. 686 sq £132,500 Dec 2012 £193 balcony ft

Property address: Bodium Court, Maidstone Unit Type Unit size Sold price Date sold £s psf 2 bed apt. Garage £141,500 Oct 2012

Property address : 64 Kingfisher Meadow, Maidstone Unit Type Unit size Sold price Date sold £s psf 2 bed apt. En- 650 sq ft £115,000 May 2012 £176 suite. Balcony.

Property address : 14 Passmore Way, Tovil ME15 6AD Unit Type Unit size Sold Date sold £s psf price 1 bed ground floor £98,000 July 2012 flat

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