V A L U A T I O= N R E P O R T

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On behalf of

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Inspected by = ; : Ian S Kite MRICS

Date of Inspection : 9^th February 2010 =

Weather&= nbsp; &nbs= p; : Dry and bright = ;

TERMS OF REFERENCE

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Following your telephone instructions dated the 8^th February 2010, we have inspected ******************************************, in order to advise on= the Market Value of the premises, for acquisition purposes.

Our inspection of the property does not constitute a building survey, and we ha= ve not examined woodwork or other parts of the property which are covered, unexposed or inaccessible and, therefore, cannot report that such parts of = the structure are free of rot, beetle or other defect. We have not tested the electrical installations, drains or other services.&n= bsp; We have not arranged or carried out any investigations to determine whether any High Alumina cement concrete or other deleterious materials have been used in the construction.

We would confirm that we have no conflict of interest in this matter and the valuation has been carried out in accordance with the Practice Statements in the RICS Valuation Standards (6^th Edition). This report is confidential to the client and the client’s immediate Professional Advisors and excludes responsibility and liability to third parties, unless otherwise stated.

We would refer you to the attached definitions to which this advice is subject= .

LOCATION

The property is situated within easy driving distance of Morecambe town and Lancaster city cen= tres and is situated in a built up residential area surrounded by similar archetype = of properties.

GENERAL DESCRIPTION<= /o:p>

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The property is a new build detached dormer bungalow. It is of traditional construction = for its age and type with main walls of cavity stone and block construction with partial stone and partial pebble dash finish. The property sits under a main roof which is pitched and covered with natural slate, all windows and doors to t= he property are of UPVC double glazed construction and the floor to the proper= ty is assumed to be of suspended timber joist and board construction.

Mains gas, electricity, water and drainage are connected. Central heating is via a gas boile= r to radiators situated in the integral garage.

The road at the front of the property is made and assumed to be adopted, to the front of the property is a driveway and grassed area with boundary walls and fences, to the rear of the property is a decked and grassed area with bound= ary fences. To the front of= the property is parking for approximately one vehicle.

The accommodation which amounts to a gross external floor area of approximately= 184m² (1,981sq.ft.) comprises:

Ground Floor: &= nbsp; Entrance hallway, lounge/kitchen, WC, utility room, dining room and integral garage.

First Floor:&nb= sp; = 3 bedrooms one with en suite and bathroom.

REPAIR AND CONDITION<= /p>

Although we have not carried out a full or detailed building survey, from our valuat= ion inspection the property appears to have been generally satisfactorily maintained and now merely requires attention to normal items of routine maintenance typical of a property of this type and age. No repairs are required which woul= d be considered essential for lending purposes.

Slight cracking is noted throughout the property to some walls and ceilings and bo= xed area which is not altogether surprising for a new build property such as this. There are also a number= of areas where some snagging is required particularly to the front right hand elevation where it would appear the drain has been dug out but does not seem aligned to the down pipe.

TENURE AND TENANCIES<= /p>

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The property is assumed to be held freehold with no onerous restriction as to t= itle and these details should be confirmed by your legal advisers.

TOWN AND COUNTRY PLANNING=

No formal enquiries have been made to = the Local Planning Authority. We = are not aware of any matters which would have a detrimental effect on the value= of the property.

In providing our valuation advice, we have assumed that any alterati= on or extensions to the property have been carried out with relevant Planning = and Building Regulation approvals. =

GENERAL REMARKS =

A new build 3/4 bedroom detached dormer bungalow situated in a popul= ar residential area and convenient for local amenities.

Our valuation of the property is based upon similar properties that = have sold in the local geographical area recently and also assumes that the developer of the building can produce the necessary warranties for the property. Your legal adviser = should obtain these prior to purchase.

VALUATION<= /span>

The appropriate definition of the basi= s of valuation adopted is as follows:-

Market Value<= /o:p>

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The estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing sel= ler in an arm’s-length transaction after proper marketing wherein the par= ties had each acted knowledgably, prudently and without compulsion.

In providing this valuation advice we have had r= egard to the interpretative commentary for the relevant basis of the valuation as defined in the R.I.C.S. Valuation Standards 6^th Edition.

After due consideration, we are of the opinion that the Market Value of the freehold interest in the premises with= the benefit of vacant possession is:-

£182,000 (One hundred and eighty two thousand pounds)

This figure is for the property alone = in its present condition and excludes any carpets or furnishings which may be incl= uded in a sale.

RE-INSTATEMENT COST

We are of the opinion that the reinstatement cost for insurance purposes of the above premises is:

£150,000 (One hundred and fifty thousand pounds)

This figure is for guidance only to ensure that the property is adequately insured. A formal estimate wh= ich would normally be provided by a Quantity Surveyor or equivalent expertise is not included.

We trust this report contains the information you require but if we = may be of further assistance please do not hesitate to contact us.

I Kite M.R.I.C.S.

Director

HWM Surveyors =

DEFINITIONS

= INFORMATION

= All information supplied by the client, members of staff, their Professional Advisors, local Authorities. or other statutory bodies, and other stated sources are assumed to be accurate and correct, unless otherwise specified.=

= TERMS OF ENGAGEMENT

= The valuation has been carried out by an Independent Valuer as defined by, and = in accordance with , the Practice Statements in the RICS Valuation Standards 6= ^th Edition and unless otherwise stated in our confirmation letter of instructi= ons has had no previous involvement with either the property or any parties to = the transaction.

= TENURE

= Title Deeds and Leases are not inspected (unless specifically stated) and, it is assumed that the subject property is free of any onerous covenants, easemen= ts or other restrictions which may affect value. We have not investigated the statu= s of any tenants on site.

= SITE AREAS

= Any information supplied in respect of site areas have been provided having reg= ard to information supplied to us by the clients or their advisors, or computed from plans etc. We would conf= irm that we have not carried out a physical site survey, and any measurements m= ust be considered as being approximate.

= FLOOR AREAS AND DIMENSIONS

= Floor areas and dimensions are taken from inspection unless otherwise specified, = but are nevertheless approximate. All measurements quoted are calculated in accordance with the relevant Code of Measuring Practice published by The Royal Institution of Chartered Surveyor= s.

= GROUND CONDITION

= Soil stability, mining and geological reports are not undertaken by us or normal= ly inspected. In providing our valuation report we have assumed that the ground and any adjoining or nearby areas are not contaminated, that there are no dangerous materials either on site or within the vicinity, and that the ground is capable of development witho= ut the need for abnormal costs on foundations or services.

= CONDITION OF BUILDINGS, PLANT ETC.

= For the purposes of our valuation we assume that the property is in a condition commensurate with its age and purpose, and will remain so for the foreseeab= le future.

= DEFECTIVE PREMISES ACT 1972

= Any obligations, liabilities or rights thereunder, whether prescriptive or accr= ued, are not reflected in valuations unless otherwise specified.

= ENVIRONMENTAL ISSUES

= Within our report we may as appropriate, pass general comments on the impact of the existing or proposed use of the subject on its immediate environment and ot= her related aspects such as the environmental efficiency of buildings on site etc. Our report does not howe= ver constitute an environmental survey or audit, nor does it imply that the property or any process carried on there complies with existing or proposed legislation on environmental matters.

= In providing our valuation advice we have made the strict assumption that no R= adon gas is present at the property.

= If however the property is situated in an area identified by the National Radiological Protection Board as one in which the level of Radon gas enteri= ng the property is in excess of more than l% of dwellings, then remedial actio= n is recommended.

= It is not possible in the course of inspection/survey to determine whether Radon = gas is present in any given building, as the gas is colourless and odourless. Tests can be carried out to assess= the level of Radon in a building. At a small charge test instruments and results are available by post from the National Radiological Protection Board and other approved laboratories. The minimum testing period is three months. The National Radiolog= ical Protection Board strongly advises against using shorter term testing instruments as they can give misleading results. If the property is one in which, i= n more than l% of dwellings, the levels of Radon gas entering the property are such that remedial action is recommended, if tests have not been carried out then they are recommended. It has = been the experience of the National Radiological Protection Board that it is not expensive, in proportion to the value of the property, to effect the recommended remedial measures.

= ENQUIRIES

= Enquiries of Local Authorities and Statutory Undertakers are made verbally in respect= of contingent liabilities such as road widening, road charges, re-development proposals, and the effect of any Town Planning restrictions etc, where appropriate. No responsibilit= y is accepted for any inaccurate information provided.

= In providing our valuation advice it is assumed that the buildings have been constructed and used in accordance with valid Town Planning Consents, permi= ts, Licences and Building Regulation Approval and that there are no restrictions which would adversely affect the use of the property and there are no outstanding statutory or other notices in connection with a property or its present or intended use. It i= s also assumed that any permits will be transferable to a new occupier as appropri= ate.

= PLANT MACHINERY, FIXTURES AND FITT= INGS

= Unless otherwise specified all items normally associated with the valuation of land and buildings are included in our valuations and re-instatement cost assessments. No allowance is = made for the cost of repairing any damage caused by the removal from the premise= s of items of plant, machinery, fixtures and fittings.

= In the case of hotels, petrol filling stations and other properties normally sold = and valued as operational entities, all those items of equipment normally associated with such a property are assumed to be owned and are included wi= thin the valuation unless otherwise specified.

= TAXATION AND GRANTS=

= Value Added Tax, Taxation, Grants and allowances are not included in Capital and Rental values and all figures reported are exclusive of any V.A.T. liability unless otherwise stated. V.A.= T. will however be payable in certain cases.

= Unless otherwise stated no account is taken of any existing or potential liabiliti= es arising from Capital Gains or other Taxation as a result of Grants or Capit= al Allowances.

= INSURANCE

= Insurance is usually arranged by clients (or their brokers) based on re-instatement c= ost assessments, and other methods of valuation are not appropriate.

= Any re-instatement cost assessment provided includes the following items:-

= Site Clearance and demolition works, cost of construction of a replacement build= ing, cost of replacement of sewerage works drainage etc., Local Authority fees, professional fees and V.A.T. on any costings.

= Our re-instatement cost assessment is based on the gross external floor area, a= nd allows for provision of contingency sums as appropriate.<= /p>

= Specifically excluded from any re-instatement value are any figures for special foundati= ons, plant machinery and equipment, loss of rent or income during the period, and any allowance for inflation during the re-building period.

N.B. A re-instatement cost assessment is not a valuation.=

= LEGAL ISSUES

= Any interpretation of Leases or other legal documents, and any legal assumptions stated are given in our capacity as Property Consultants, and must be verif= ied by a suitable Qualified Lawyer if it is to be relied upon. No responsibility or liability is accepted for the true interpretation of the legal position of the client or other parties.

= JURISDICTION

= In the event of a dispute arriving in connection with a valuation, unless otherwise specifically agreed in writing, the client and any third party using this valuation will be subject to the Jurisdiction of the British Courts only.

= VALIDITY OF VALUATIONS

= Valuation reports are provided solely for the party to whom it is addressed and no liability is accepted to any third party without our prior written consent. Reports should= be considered in their entirety and no part to be published without prior writ= ten consent from HWM Surveyors.

= The valuation reports are for the stated purpose and as at the date specified.<= span style=3D'mso-spacerun:yes'> In normal market conditions the va= lue may change materially in a short term and if any reliance is to be placed on the valuation figure following any changes which could affect business confidence, then further consultation is strongly recommended. In any event, the valuation should= not be considered valid after a period of three months.

= INSPECTION

= We confirm that we have not undertaken a building survey and, of course, we ha= ve not examined woodwork or other parts of the property which are covered, unexposed or inaccessible and are, therefore, unable to confirm that such p= arts of the structure are free of rot, beetle or other defect. We have not tested the electrical = installations, drains or other services. Whe= re possible appropriate enquiries have been&n= bsp; made in respect of matters that&nbs= p; commonly impact on value including those relating to the Disability Discrimination Act 1995, Fire Precautions Act 1971, High Voltage Electrical Supply Apparatus Radon Gas Contamination etc.

= PUBLICATION

= Neither the whole or part of this Valuation Report or any reference hereto may be included in any published document, circular or statement, or published in = any way, without the Valuer’s written approval of the form and context in which it may appear.

= LIMITS ON EXCLUSION OF LIABILITY

= This Report is confidential to the client and the client’s immediate professional advisers and excludes responsibility and liability to third parties unless otherwise stated.

= KNOWLEDGE AND SKILLS=

= The report will be prepared by a person with the appropriate knowledge, skills = and understanding to undertake the valuation competently.

= MONITORING

= The Valuation may be subject to monitoring under the Institution’s Conduct and Disciplinary Regulations.

= COMPLAINTS PROCEDURE

= HWM Surveyors operate a complaints handling procedure which complies with the R= ICS Rules of Conduct and this is available on request.

HWM/DE= F/1/10

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