Definitions

Question 1

Market Value

Answer 1

The estimated amount which an asset would exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing where both parties have acted knowledgably, prudently and without compulsion.

Question 2

Fair Value

Answer 2

The price that would be received to sell an asset in an orderly transaction between market participants at the measurement date

Question 3

Market Rent

Answer 3

The estimated amount a property should be leased on the valuation date between a willing lessor and a willing lessee on appropriate lease terms in an arm’s length transaction, after proper marketing, and where both parties have acted knowledgably, prudently and without compulsion.

Question 4

Investment Value

Answer 4

Value of an asset to the owner or a prospective owner for individual investment or operational objectives.

Question 5

What is included in standard office spec

Answer 5

• Defined by British Council for Offices (BCO)
• Raised floors – (void 150mm)
• Suspended ceilings – (void 350mm)
• Floor loading 1.5-3kn/sq,
• Air conditioning – VAV or 4 pipe fan coil
• Double glazing
• 2.6-2.8m ceiling height

Question 6

What is included in standard industrial spec

Answer 6

• Steel portal frame with insulated profiled steel cladding
• Floor loading 30kn/sqm
• 10% roof lights
• Minimum 8-10m internal eaves height
• Full height loading doors
• 3 phase electricity power
• 10% office content
• Approximate site cover 40%
• Yard depth 40m depending on size of unit

Question 7

Special Assumption

Answer 7

An assumption that assumes facts that are different from the actual facts at the valuation date.

Question 8

Assumption

Answer 8

A supposition taken to be true