Valuations for Fine Art & Antiques Rachel Doerr – Director, Valuations Sean McIlroy – Senior General Valuer 29 th

1. Valuations for Fine Art & Antiques Rachel Doerr – Director, Valuations Sean McIlroy – Senior General Valuer 29th September 2011

2. Types of Valuations include:- Insurance Valuations Walk Through Validation Inheritance Tax Valuations Divorce Valuations Willing buyer/Willing seller Auction Sale Estimates

3. Why have a valuation? Many years of valuation experience have shown us that more than 69% of the clients we visit are underinsured. An accurate and up to date Valuation provides the comfort of knowing that valuable possessions and collections and household items are correctly insured and that any claim would accurately reflect the loss and assist in the process. Many areas can affect values which we will look at within this presentation; having a professionally trained eye to confirm this is invaluable! Many clients unfortunately find out when it is too late! Asking us to value items from family photographs or damaged items – all when it is too late. As Trust Administrators and Managers you need to ask yourself can you sleep at night or do any of your clients worry you should you hear they had a flood or worst still a burglary? Does their policy accurately reflect the cover required?

4. From recent WTV’s completed over a two month period – it reported the following statistics Total No. under % under No. stayed No. over- % over insured   Completed insured insured the same insured • under 200k Contents 8 7 33% 0 1 32% • 200k - 250k Contents 11 8 38.18% 2 1 10.60% • 250k - 300k Contents 11 8 30.30% 1 2 5.05% • 300k - 350k Contents 11 6 34.20% 4 1 18% • over 350k Contents 24 14 19.82% 1 9 14.40%

5. Insurance ValuationWhat is it? A Picasso Madoura pottery ewer, painted in blue with a stylised face, No 19 of 100, painted and impressed marks, 32cm high £25,000 It is a confidential and discreet service which offers a fully detailed and illustrated contents inventory. A room by room category by category database is completed of a clients home. A threshold will be discussed with the clients whereby we would usually recommend itemising over £500 (to be discussed with client) and producing a global summary of remaining contents room by room. Providing a full summary for the client, with certificate.

6. Inheritance Tax ValuationWhat is it? For the purposes to provide an assessment of assets and calculation of taxation. With the ever increasing complexities of taxation, trust and domicile regimes, accurate and up to date valuations have become increasingly important. Valuations are provided at open market value (the value for which they could be sold if a bargain were made between a willing buyer and a willing seller) and in accordance with Section 160 of the Inheritance Tax Act of 1984. Items in the Valuation appear as a text document with images kept on file/or illustrated to help acceptance by HMRC without further inquiry and the risk of delay. Values are provided with the box number into which the value should be entered in accordance with form IHT 407. The report includes a final statement summary and inheritance tax valuation certificate.

7. Walk Through Validation? A less informal but detailed inspection of the home assessing on a room by room basis; category by category calculation providing global figures for insurance. The purpose of the assessment being a 1.5/2hr process is to establish:- • Current sums insured are correct or not • To give both confidence to the client, broker and insurer that the sums are correct should the client suffer a loss • To add value to your service and provide advice and recommendations where necessary.We particularly find nowadays that with mid net worth and high net worth individuals have an extraordinary range of lifestyles and priorities, and it is virtually impossible to guess or estimate what value their contents might be without first hand knowledge and sight. In most cases where people have significant quantities of antiques, fine art or valuables, there is really no substitute for specialist advice.

8. This is an old valuation – ensure your client has an up to date one!

9. What value do we place on items being valued within the home for Insurance Purposes? Buying History replacement value being:- i. High Street retail replacement ii. Auction retail replacement iii. Agreed values, ie asset value We would always clarify this within the report stating the levels.

10. What effects the valuer? • Many aspects affect the valuer when valuing an item from: • Seeing • Touching • Smelling • Hearing & Taste! • Knowledge • Question? How often has a valuer turned a piece upside down, or been under a table? • You need to see the piece to inspect it; feel it, etc – we cannot do it just from an image

11. What affects the value? • Quality • Medium • Size • Subject matter • Artist • Rarity

12. Quality IRISH GEORGE II MAHOGANY SIDE TABLE CIRCA 1750 the moulded rectangular top above an ornate high relief shell and foliate scroll carved frieze centred by a mask motif 120cm wide, 77cm high, 64cm deep Insurance value: £500,000 FINE IRISH GEORGE III MAHOGANY SIDE TABLE MID 18TH CENTURY the rectangular top with a moulded edge over a frieze carved with scrolling acanthus and flower heads against a stippled 96cm wide, 73cm high, 54cm deep Insurance value: £75,000

13. MediumPablo Picasso The Picador Glazed pottery, signed Insurance Value: £6,000 The Picador Ink and wash on paper, signed Insurance Value: £180,000

14. Quality & Rarity A 5.2 carat contemporary fancy yellow and colourless diamond set cluster ring with accompanying GIA Coloured Diamond Grading Report numbered 16395225 stating Principal Diamond Weight: Colour Origin: Natural; Colour Grade: Fancy Yellow; Distribution: Even; Clarity Grade: Internally Flawless Sold for £30,000 Insurance value: £85,000 A citrine and diamond cluster ring, also set to each shoulder with five similarly cut diamonds Sold for £780 INS £2,500

15. Artist ALFRED DE BREANSKI SENIOR (BRITISH 1852-1928) THE HEADS OF LOCH LOMOND Signed, oil on canvas 41cm x 61cm Sold £9,500 – Insurance value: £ 17,000 F**E**JAMIESON (BRITISH 19TH/20TH CENTURY) BRIDGE OVER A HIGHLAND STREAM Signed, oil on canvas 41cm x 61cm Sold £130 – Insurance value: £350

16. Subject matter LAURENCE STEPHEN LOWRY R.A (BRITISH 1887-1976) THE HAWKER'S CART Signed and dated 1929, oil on canvas 53.5cm x 39.5cm Sold £555,000 – Insurance Value : £1,000,000 CAREL WEIGHT R.A (BRITISH 1908-1997) VILLAGE CUP TIE Signed and inscribed verso, oil on panel 91cm x 130cm Sold £29,000 – Insurance Value: £75,000

17. Size really does matter! GUY WIGGINS (AMERICAN 1883-1962) WASHINGTON SQUARE, oil on canvas, signed 22.8 x 30.4cm (9” x 12”) Insurance Value: £7,500 GUY WIGGINS (AMERICAN 1883-1962) WASHINGTON SQUARE; Oil on canvas; signed lower left, signed and titled verso 45.7 x 61 cm. (18”x 24”) Insurance Value: £75,000

18. Rarity Ian Fleming Casino Royale, London, 1953. Casino Royale.  First edition, with original dust wrapper Sold £11,000 - Insurance value: £19,000 Ian Fleming Casino Royale. London, 1953. Casino Royale, First edition, later black morocco gilt with red heart inlay by Bayntun-Riviere Sold £700 – Insurance value: £1,250

19. Art is a good investment however you should always buy for love and enjoyment!

20. RICS Arts and Antiques Market Survey • Art and antiques prices continue to rise, as more buyers turn to the market as an alternative investment, says the latest RICS Art and Antiques Survey. • 26 per cent of surveyors reported a rise in art and antique prices, rather than a fall, up from 24 per cent the previous quarter. Evidence from surveyors suggests prices are rising as consumers increasingly view art and antiques as tangible assets which perform better than other forms of investment. • “The British art and antiques market is buoyant at the moment; as buyers continue to invest in material assets during uncertain economic times. After the recent £300million worth of art auctions Britain now commands 29 per cent of the global art trade and is the world second largest art market. As well as generating £8billion of sales and directly supporting 60,000 high value jobs in 2009, it also creates substantial revenue for ancillary businesses and support services, which generates another 66,000 jobs. • "London thrives as one of the most open art markets in Europe. Its position is highly vulnerable to any fiscal or regulatory changes which might disadvantage it in an increasingly competitive global art market. • Simon Rubinsohn, RICS Chief Economist – www.rics.org

21. Communication Once a relationship has been established and the requirements of our client confirmed, we can tailor all our documentation towards you and your clients. All our requests go via email or our dedicated Valuations line 0845 882 2794. Procedures All our ‘Requests for Valuations/Validations’ are emailed to valuations@lyonandturnbull.com whereby our team of administrators deal with the requests and contact the clients to arrange suitable appointments. Lyon & Turnbull work on strict Service Standards. It is a very simple process but we do need to put this in place for the service to work and be efficient.  Central Diary System All appointments are made through a central diary system so we maximise time and the geographical area – it also enables us to have a direct link with the client whereby the client is dealing with only one person when booking a valuation with multiple valuers. Central Intra-net site Intra-net spreadsheet - all the information is input onto our internal server which we allocate secure access to you, this enables our business partners to follow progress, ability to be made aware of appointment dates, status of reports etc without the need for telephone communications. Ensuring the company you recommend is paramount, you need to guarantee the support services are in place and the services are tailored to your organisation and clients. Lyon & Turnbull are happy to discuss ours with you!