Various areas of Strata and Common Property are traded from time to time either by sale, lease, and licence. The tenure of these can vary from a special privilege, exclusive use by-law or even re-drafting of the Strata Plan to include the varied area. These areas may need a valuation to assist with negotiations and for use by the Revenue NSW for the calculations of stamp duties in the transfer.
Some of the surplus strata areas we see transferred are roof space voids & roof decks, basement areas, surrounding land annexured for courtyard use, areas under stairwells for storage, common property areas modified and sold as additional car parking, development of common property and easements for services as noted previously.
The approach to value these areas varies with the circumstances. In the case of car accommodation and storerooms we usually indentify sales of similar parcels. In the case of areas like coutyards and roof space additions we undertake a detailed analysis on a feasibility basis giving regard to the potential improved value less the development costs and other expenses/allowances (which are usuallly quite substantial). An added benefit in this approach is that the purchaser also obtains an improved market insight as to the viability of the proposal.