Submission Examples / Final Bits

Question 1

What is the UK National Supplement?

Answer 1

An supporting document to the RBG providing specific requirements for valuation applications to UK jurisdictions. Effective May 2024

Question 2

3 parts of National Supplement?

Answer 2

Part 1: UK PS mandatory
Part 2: UK VPS mandatory
Part 3: UK VPGA’s

Question 3

Key changes include

Answer 3

VPS 3 - regulated purpose valuations (valuations relied on by 3rd parties) that require rotational valuers/firms

VPGA 8 - Valuation for Charity Assets

VPGA 10 - Valuation of commercial secured lending incorporating new ESG principles

Question 4

What are regulated valuations and what are the rotational rules?

Answer 4

Valuations that are relied upon by third parties

• Stock Exchange listings
• Mergers/acquisitions
• Collective investment schemes

Max 10 years rotation of valuation firm
Max single engagement of 5 years
Min 3 year break after rotating engagement

Question 5

Upcoming changes to the RBG due later this year

Answer 5

• Changes to VPS - there will be 6 VPS’s with:

VPS 5 being split into VPS 3 Valuation Approaches and;
VPS 6 Valuation Methods

Increased compliance on VRS - members conducting red book valuations must join the VRS

Integrating valuation review recommendations

Adapting practices for ESG and tech advancements

Question 6

Ethics L3

Answer 6

Chigwell Valuation - Single house valuation internal purposes

Agency Epping Forest - ongar barns - compliance ML checks on borrower

Question 7

Client Care L2’s

Answer 7

Valuation, Billericay - retail floor area discrepancies - informed client

Agency Ongar - marketing approach and provided weekly updates

Question 8

Communication & Negotiation L2’s

Answer 8

Valuation Chelmsford - Residential investment valuation - legg street - agreed deadline

Valuation Hertfordshire - Berkhamsted house - agreed basis of value required and agreed fee

Question 9

Health & Safety L2’s

Answer 9

Valuation Takeley - Arranged with Borrower the required PPE

Valuation Chelmsford - Gemini centre - lone working procedure

Question 10

Inspection L2’s

Answer 10

Levens Green Valuation - single house - downloaded DD, checked for defects and boundary discrepancies

Valuation London - Aldgate - inspection of high spec office to Cat B specification

Question 11

Inspection L3’s

Answer 11

Valuation Danbury - Presence of ACM, requested R&D survey and advised client to obtain prior to demolition. Advised to bank that remediation can affect Market Value.

Valuation Barking - Significant defects from water ingress, leading to rising damp and wet rot of door/window fixtures. Advised chartered building surveyor and caveated valuation on structural concerns

Question 12

Valuation L2’s

Answer 12

Hutton Mount Valuation - RBG - prime house - comparable method and RICS comparable evidence in RE valuation.

Valuation Aldgate - office - non-red book as was internal purposes - comparable for MR and investment method for MV - rack rented so applied an implicit ARY

Question 13

Valuation L3’s

Answer 13

Valuation Chelmsford - Legg Street - desk top for internal purposes - PDR change of use - irregular floor plates - analysed comps and discounted subject units for irregular shape and limited parking

Valuation Stebbing - development site 12 units - red book valuation - cross referenced build costs - adopted borrowers costs - calculated contingency and cash flow and advised costs should be verified by an independent cost consultant

Question 14

Measurement L2’s

Answer 14

Valuation Bocking - Adopted IMPS 3 - in RICS Property Measurement - as multi occupied office property - repeated measurements - calculated measurements on excel and dated/signed

Valuation Billericay - Industrial property - measured GIA in line with code of measuring practice - including columns - also measured access door and min/max eaves heights

Question 15

Development Appraisal L2’s

Answer 15

Thurrock Consultancy - 90 dwelling outline PP appraisal - 40% AH - established GDV and calculated profit

Shenfield Agency - airspace development of 16 flats - GDV and build costs with sensitivity using 2.5% increments

Question 16

Development Appraisal L3’s

Answer 16

Consultancy Chipping Ongar - assessed profit levels of 3 & 5 unit schemes - Cost plan by QS & 5% contingency - 18% Profit / GDV - recommended 3 unit scheme

Disposal Waltham Abbey - brownfield site w positive Pre-App for 32 units - 40% AH - established GDV & MV - sensitivity with £25 psf +/- increments and 10% +/- increments on cost. Advised client that delayed sale would maximise capital receipt

Question 17

Loan Security Valuation L2’s

Answer 17

Valuation Berkhamsted - refurbishment/extension project for Coutts bank - stated loan terms and determined GDV & MV with sensitivity - also provided reinstatement

Valuation Billericay - office asset - single tenant - analysed cov strength which was average - asset was rack rented so I capitalised with NIY

Question 18

Loan Security Valuation L3’s

Answer 18

Fyfield Valuation - dev land - calculated MV using build costs by borrower - SWOT - reported threat that plot sizes on existing land ownership were limited for dwellings. Advised client that the asset was not suitable for lending as borrower did not own/have contract over proposed plots - impacting value of prime units

Chelmsford Valuation - Gemini Centre - bank requested restricted marketing. Advised 90 days unrealistic unless auction. Property was not in high demand - 180 days applied 20% discount as supported by other restricted time transactions

Question 19

Purchase & Sale L2’s

Answer 19

Shenfield Agency - block of flats - private treaty - outlined selling rights and timeframes - attached ToB

Agency Colchester - brownfield site - prepared brochure and data room and monitored enquiries - provided viewing summaries

Question 20

Purchase & Sale L3’s

Answer 20

Ilford Agency - mixed use asset for development with no PP - due to high level of interest - informal tender and bid deadline - provided bid matrix summarising offers to help client decide offer

Ongar Agency - redundant barns for development - advised private treaty due to sentimental value of asset to client - control and confidentiality - client objective was not to maximise capital receipt

Question 21

Planning & Development Mgmt L1’s

NPPF? & Updates
Town & Country Planning Act?
CIL/S106?

Question 22

Planning & Development Mgmt L2’s

Answer 22

Basildon Planning Statement - supported full application by drafting planning statement - site previously used for leisure within Green Belt - scheme for 4 dwellings - analysed against NPPF and Local Plan policy - removal of green belt under H7b as deemed acceptable for development

CfS - Great Bentley - greenfield land parcel form part of Tendring CfS - analysed context, boundaries and services - neighbouring parcel granted 136 units - concluded reasonable for development due to Council’s housing supply position.