Do you know what is the usual ratio between the market price and the reinstatement cost (cost of rebuilding the house from scratch) for a house in London ?
2007-04-02 08:50:05 · 3 answers · asked by Sitruc 1 in Business & Finance ➔ Renting & Real Estate
The cost to build a replace for your home is based upon cost estimated provided by a service such a Marshall & Swift, local builder, Etc.. There is no master ratio but the cost minus depreciation is a good estimate of value. Deprecaition is based upon your effective age to econmic age. Get a couple appraisals to determ your value of out home.
2007-04-02 09:02:01 · answer #1 · answered by Andrew H 1 · 0⤊ 0⤋
The reinstatement value is the cost of rebuilding a property for insurance purposes. There is no ratio but it is based on:
demolition and clearance of the site
shoring up of neighbouring buildings
rebuilding costs
professional fees
geographical factors
type of building (flat, bungalow, 3 storey town house)
Each type of building will have a cost per sq.m. based on location and construction methods and these figures are published by BCIS as a guide throughout the construction industry.
The reinstatement value has no bearing on 'open market value' of a property.
2007-04-04 23:33:49 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Somewhere between 1/3 and 1/5th.
2007-04-02 10:29:16 · answer #3 · answered by Steve B 7 · 0⤊ 0⤋