Property & Estates Flashcards
What is a valuation
To calculate and determine the current value of an asset or liability
What is a liability
Something a company or person owes, usually a sum of money
Valuation of current Liabilities
Quantifying debt obligations that are expected to come in
What are 3 types of liabilities
Current, none current and contingent liabilities
Who does Valuation Basis mean?
A statement of the fundamental measurement assumptions of a valuation
Recognised basis values
Market Value (MV)
Market Rent (MR)
Worth
Fair Value
What is the meaning of asset valuation
The process of calculating the current value of a company’s assets such as stock, buildings and equipment. This will allow you to calculate a business net worth by adding the current value of the assets less the value of its liabilities
What does market value mean?
What someone is willing to pay for an asset, not necessarily how much the asset is worth.
What is an acquisition
Buying or obtaining an asset
What does disposals mean?
The process of getting rid of an asset
What is a disposal
Transfer of a freehold or leasehold property to a 3rd party for the payment of a premium
What is the purpose of acquisitions and disposals at a council?
To inform officers, members and other parties which land and property they have acquired and disposed of
What is a strategic forecast
Looking into the future to see what markets may develop, what resources are needed to make use of those markets and how to get ahead of other competitors. Mostly guesswork but can be based off solid principles
What is a lease?
A long term agreement that contractually binds a tenant to a property for a set period of time unless any break clauses are discussed
What is a break clause?
Allows either the tenant or the landlord to end the tenancy early
