L3 Valuation Flashcards
Example 14 – how did you value for CGT purposes?
I carried out a comparable method of sale, where I collected similar, recent and local transactions. The property comprised a detached dwelling set in a local area, although not identical, I found several useful comparables.
I set these in a table, to assist me comparing the comparables. I adjust the values and calculate per bedroom valuation, in order to achieve a market value for the subject property.
What was the basis of value under the CGT?
Market value.
estimated amount
asset or liability
valuation date
between a willing buyer and a willing seller
in an arm’s length transaction
after proper marketing
where the parties had each acted knowledgeably, prudently, and without compulsion
Explain your advice on the valuation and transfer.
I carried out a market appraisal to assist my client with her decision-making. This enables her to discuss with her accountants. However, I did state that the market appraisal did not equate to a red book valuation, which would be required.
How did you apply the comparable method?
I collected similar, recent, local transactions and summarised in a table.
I adjust the valuations as required in order to value the subject property.
I also calculate the value per bedroom.
How did you analyse your evidence?
I summarised my findings in a letter format, stating the information of the property we inspected, listed the comparables and stated my valuation.
How did you apply the hierarchy of evidence?
I commented on which comparable I mostly depended on and which ones I least relied.
Why was this not a full Red Book valuation?
What sections of the Red Book did not apply?
Less time consuming and cheaper.
Will need a full red book valuation if deciding to transfer asset to daughter.
What was the property type and how did this affect your valuation method?
Detached house.
Plenty of comparable evidence.
Example 15 – how did you value this property?
Comparable.
Was this a valuation or an appraisal? Is this suitable at level 3 – what advice did you
give?
Valuation for market appraisal.
I set as an example of level 3 as i provided advice on the lotting.
How did you value the two properties?
How did you value the high specification?
How did you advise on prudent lotting?
Considered the market.
Attracting small holders generally will achieve a higher price.
How did you advise on maximising sale price?
How did you apply the Red Book?
Wrote in report format and applied PS and VPS as per Red Book Standards.
