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Stephen Taylor, Hampstead Neighbourhood Forum
Published:
8:45 AM March 5, 2021
  
Property value is more than the building cost
- Credit: PA
My neighbours have a problem. They own a lease and a share in the company that owns the freehold of their building. Their immediate neighbour wants the fire insurance to cover the market value of the property – five million pounds. They want to insure only for the cost of rebuilding – half a million.
How is a house you can build for £500,000 worth five million? The difference is the value of the land. So how is a scrap of land in Hampstead, zoned for residence, worth £4.5M? 

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