Summary of Experience - Technical Flashcards
What are the five valuation methods?
Profits Residual Investment Comparable Contractors (Depreciation Replacement Costs)
What different purposes are there for a valuation?
Advise in acquisition or disposal
Insurance coverage (replacement val)
Loan collateral
What are the mandatory elements of the red book?
Professional Standards (1&2) PS1 - Compliance with standards (5 exceptions) PS2 - Ethics, competency, objectivity & disclosures
Technical and Performance Standards denoted VPS
1- Terms of Engagement (Scope)
2- Inspections, investigations and records
3- Valuation reports
4- Bases of value, assumptions, special assumptions
5- Valuation approach / method
International Valuation Standards (Part 6) (e.g. IVS410 - Development Property)
Provide some best practice guidance from the Red Book.
Valuation Practice Guidance Applications
Val of secured lending, plant and equipment, intangible assets
Walk me through a comparable valuation.
Maidstone Select comps (new build / secondhand) - 5-10% NB Premium Verify details with sales staff Assemble comparables schedule Adjustment & hierarchy of evidence Set out opinion of value Report
Walk me through a residual valuation
Maidstone GDV £360/ft - £235/ft -Build Cost £155/ft -S106 £10k/plot (No CIL) -Dev Cost 8% private t/o (SI, PP, PA, S&M) -Stamp Duty @5% Dev Profit 24% (50% ROCE) =Land £8m (£743k /acre)
Serviced Land Val add back in S106 & Infra (£1.2/acre)
What is the difference in Market Value and Existing Use Value?
The term existing use value (EUV) describes what property is worth in its current form
Market value is the price that property be sold for on the open market
Known as valuation bases
What aspects can impact a sites/parcel value ?
Topography (Retaining Structures, Build, Material)
LPA (Design, S106, CIL)
Location (GDV, Infra, Services)
Access/ Ransom
What are the benefits of using Argus?
Negatives?
Automated sensitivity testing (no formula)
Ease of use (UI)
Strong reporting- summaries or extracted data
Cost of application / training required
How/What adjustments did you make to parcel comparables at Bicester?
Based on quantum of developable area and dwellings i felt this would support a smaller developer that would not benefit from economies of scale in large developments and allowed for a reduced GDV
What are the various classifications of comparable evidence?
Comparable evidence GN 2019
Cat A - direct comparable (asset/ location)
Cat B - general market data (historic data, indices)
Cat C - other sources (background data e.g. interest rates or transactions elsewhere)
How are local plans adopted?
Evidence gathering (call for sites) R18 Issues & Options R19 Preferred Options Submit Core Strategy to SoS (5YLS) Examination in Public -> Inspectors Report (Sound/Unsound) Council Vote on adoption
Inspectors soundness test
NPPF
Positively prepared – meet objectively assessed development and infrastructure requirements, including DtC
Justified – considered against the reasonable alternatives, this is most appropriate
Effective – the plan should be deliverable over its period and based on effective joint working on cross-boundary strategic priorities
Consistent with national policy – sustainable development
What is the hierarchy of planning policy in England?
NPPF
London Plan
Local Plan / Core Strategy
Neighbourhood Plan
What is the consequence of not demonstrating a fiver-year land supply?
National -
Local - A presumption in favour of sustainable development will apply to planning applications.
Deliverable - planning status, site information available, progress made in submission or site assessments & PPA, in principle decision
Tell me about the Planning for the Future consultation?
A White Paper published in
Sets out changes to the planning system:
- Interactive map based local plans setting out growth, renewal and protected land
- Binding targets for housing delivery set nationally to delivery 300,000 dpa
- Single statutory “sustainable development” test, replacing existing tests of soundness (30Mos adoption)
- Infrastructure levy on all development replacing S106 & CIL and used at LPA discretion
How will the Planning for the Future be more efficient?
- Local plans are to be reduced in size focussing on a mapped approach and published within 30-months
- LP single test of sustainable development replacing soundness (4) test
- Open data approach moving from reliance on documents to data
- Funding of planning system to move to beneficiaries rather than taxpayer
What is the impact of best and most versatile land on development prospects?
Where there is a loss of over 200,000ha Natural England are consulted
NPPF should use areas of poorer quality instead
Higham- loss of grade 3 only part of site, explore options to mitigate loss
What is best and most versatile land?
Based on the Agricultural Land Classifications BMV is better quality land in grades 1-3 of 5. 1 is best
Based on crop yield output and consistency, range of uses & minimal inputs
These can be found on 1988 MagicMaps Plans
What is a landscape of local value?
This is a local landscape designation used to protect landscapes.
Maidstone used to protect sensitivity and character. Prevented development and sensibility of treatments
What are five test of the Green Belt?
Dartford (4)
- to check the unrestricted sprawl
- to prevent neighbouring towns from merging
- to assist in safeguarding the countryside from encroachment
- to preserve the setting and special character of historic towns
- to assist in urban regeneration by encouraging the recycling of land
Dartford green belt review
What are Air Quality Management Areas?
These are places that have been found locally to not meet the national air quality minimum standards. (based on max particulates measured eg. lead, sulphur carbon
Managed locally and by DEFRA
What scales are drawings made to?
Conveyance plans..
1: 50 - Room Plan
1: 100 - Building Plan
* 1:1250 - Street / Location Plan
* 1:2500 - Location Plan
1: 50000 - Road / Walking Map
What scale are conveyance plans drawn to?
Title plans
1: 1250 - Urban Locations
1: 2500 - Rural Locations
Who are the main duty holders in CDM Regulations 2015?
Commercial Clients - appoint others and provide information
Domestic Clients - often transfers responsibilities to a contractor
Designers - produce and edit plans minimising risks in construction and operations
Principal Designers - where more than one contractor present they plan manage and monitor H&S at pre-construction
Principal Contractor - plan manage and monitor H&S during construction (welfare/inductions)
Contractors - Plan, manage and monitor construction work under their control
Workers - take care of own and others H&S, reporting issues as they arise
What is the importance of complying with CDM regulations?
Failing to comply is a criminal offence
Companies can be fined
Directors and individuals can face up to 2 years in jail
What are the legal tests for s106 agreements/obligations?
- Necessary to make the development acceptable in planning terms
- Directly related to the development
- Fairly and reasonably related in scale and kind to the development
What are local land charges?
These are obligations or restrictions held on land imposed by a public authority.
Usually used for planning conditions they can also apply to TPO, listed buildings etc..
A search must be conducted to find these
Land Registration Act conventions designating land?
a?
What are Commercial Property Standard Enquiries?
CPSEs are a standard set of enquiries which draw out detailed information about the property. These are raised by the buyer w/ ans from seller.
Must be as accurate as possible to avoid damages claim or risk seller aborting
How do you create transfer plans in the convention of Land Registry guidance?
Metric Scale 1:100 or 1:200
- Scale Measurement Bar
- Scale noted on plan
- Scale Location Map 1:1250 (urban)
- Full Address & Postcode
- North Point
- Red Line Demise
What is a TP1 form?
This is a standard legal form used by Land Registry to transfer part of a registered title
Tell me about IPMS
Developed by a coalition of 80 different groups to produce a standardised measuring standard across the globe.
IPMS published for Office, Residential, Retail & Industrial Buildings
Office & Residential adopted by RICS - Measurement PS 2018
Code of Measuring Standards still in use
Consultation on All Buildings Asset Classes end in 31 March (Mixed-Use & Specialist Buildings)
How can you manage the downfalls of lasers in measurement?
- Use a shadow on the target area
- Use a white sheet of paper as a target
- Recalibrating the baseline (10 times) of a known distance
- Send off for recalibration
- Check against scaled plan
- Ask for assistance
