Valuation Definitions

Question 1

When do you require a Redbook Valuation?

Answer 1

Tax planning, capital gains tax, inheritance tax, probate valuation, secured lending

Question 2

Why would you undertake a probate valuation?

Question 3

What are the 4 exemptions from the RICS Redbook Valuation?

Answer 3

Internal purposes;
Marketing appraisal;
Statutory purpose/claims;
Litigation in court (e.g. expert witness)

Question 4

What is the Net Internal, Net External, and Zone areas?

Question 5

Identify 8 headings you would expect to find in the Terms of Engagement?

Answer 5

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Question 6

What is a special assumption?

Question 7

What is the difference between terms of business and terms of engagement?

Question 8

What is the benefit of valuers registration scheme?

Answer 8

to maintain standards of valuation across the board, maintain parity, transparency and enable scrutiny

Question 9

Define Market value?

Question 10

Define Market Rent?

Question 11

What other bases of valuation other than Market Rent and Market Value could be used in a Valuation?

Question 12

Why do you make assumptions in a valuation?

Question 13

What is your firms complaints handling procedure?

Question 14

When would you use Term and Reversion Valuation

Question 15

What is a yield in a Term and Reversion

Question 16

How does a rent review and break clause effect Term and reversion

Question 17

Define net Present Value, NPV?

Question 18

Why do you need to consider Index Calculation on the Discounted cash flow