Valuation - Level 1 - Residential Specific Flashcards
1
Q
What is leasehold enfranchisement?
How does it differ for flats and houses?
A
TBC
2
Q
What is the basic procedure of leasehold enfranchisement?
A
TBC
3
Q
What is the basis of valuation?
A
TBC
4
Q
What are current mortgage rates (on a BTL mortgage)?
How have they changed over the past few years?
A
TBC
5
Q
What are current LTV ratios?
A
TBC
6
Q
How could you value an HMO using the investment method?
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TBC
7
Q
What were you specifically looking for in relation to the HMO use?
A
TBC
8
Q
How can you establish if a property is an HMO?
A
TBC
9
Q
What are the minimum rooms sizes for an HMO?
What is statutory overcrowding?
What legislation relates to this?
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TBC
10
Q
Tell me about any other legislative requirements relating to HMOs you are aware of?
A
TBC
11
Q
What planning use do HMOs fall into.
A
TBC
12
Q
Is there generally a premium attributable to HMO use over and above value as a single family house?
A
TBC
13
Q
Why did you use an investment method of valuation?
A
TBC
14
Q
What is an Article 4 direction?
A
TBC
15
Q
How might gross and net yields differ for HMOs?
A
TBC
16
Q
What RICS guidance are you aware of relating to HMO valuation?
Was there any UK-specific guidance you also complied with?
A
TBC
17
Q
What category of buy-to-let valuation does a HMO fall within?
A
TBC
18
Q
What are some of the broader issues facing the HMO sector?
A
TBC
19
Q
Tell me about the regulation of the HMO sector.
A
TBC
20
Q
How can rental incentives impact on HMO valuation?
A
TBC
21
Q
What are guaranteed rents / cash backs in lieu of rental income and how
can these impact upon value?
A
TBC
22
Q
How can Market Rent impact upon the underwriting of a loan?
A
TBC
23
Q
How have you commented upon any limitations to accuracy of your HMO valuations?
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TBC
24
Q
How can maintenance costs impact upon valuation and what does the Red Book say about these for HMOs?
A
TBC
25
When is it reasonable to adopt the income approach when valuing HMOs under the Red Book?
TBC
26
What additional considerations do you need to make for category 3 scenarios?
TBC
27
What is a lifetime mortgage/home reversion/sale and rent back/home purchase plan?
TBC
28
What are the Red Book requirements in relation to these?
TBC
29
What is shared ownership/shared equity scheme?
How would you value a shared ownership / shared equity scheme property?
TBC
30
What is a trustee mortgage valuation?
What legislation relates to this?
TBC
31
What is affordable/market rent?
TBC
32
What is your role in relation to advising a lender client?
TBC
33
Tell me about the requirements in relation to your terms of engagement /inspection.
What is the basis of value?
TBC
34
What factors may have a material impact on value?
TBC
35
What assumptions / special assumptions have you made in relation to value?
TBC
36
What is reinstatement cost and when would you be asked to provide it?
TBC
37
How would you calculate BCIS?
TBC
38
How would you deal with suspected hidden defects?
TBC
39
How would you treat incentives?
TBC
40
Tell me about the application of the RICS Residential Mortgage Specification in relation to a specific purpose, e.g., re-inspection or valuation without internal inspection.
TBC
41
Where would you find the RICS Residential Mortgage Specification?
TBC
42
What are the 3 categories of BTL investments?
TBC
43
Have you valued a historic building and what RICS guidance were you aware of? Can you tell me a key principle of this guidance?
TBC
44
How do you reflect the historic nature of a building in your valuation advice?
TBC
45
What type of RICS surveys include a valuation?
TBC
46
What level of valuation advice does a Level 2 Home Survey include?
What guidance does the RICS provide in relation to this?
TBC
47
Level 2 Home Survey - What is the basis of valuation in this type of report?
What assumptions are made in this type of report?
What else do you need to include in relation to your valuation?
TBC
48
Tell me about the RICS guidance relating to the valuation of individual new-build homes.
What is a key principle of this document?
TBC
49
What is the new build premium?
TBC
50
How would a valuation of new build home differ to a second hand home?
Tell me about how you have applied this guidance to a new build valuation.
TBC
51
Tell me about your use and understanding of AVMs.
TBC
52
Does the RICS provide any guidance on AVM's?
TBC
53
What is an AVM?
TBC
54
What is an advantage and a disadvantage of using an AVM?
TBC
55
Give me an example of an AVM you have used.
TBC
56
Have you valued a residential property purpose built for renting?
What RICS guidance are you aware of in relation to this?
What are the key principles?
TBC
57
What are the three key pieces of legislation which have impacted the UK residential market (and purpose built valuation)?
TBC
58
What valuation considerations would you take into account when valuing a purpose built for renting property?
What is the difference between a gross and net yield in this respect?
TBC
59
What factors influence yields?
What residential operating expenses would you need to take into account?
TBC
60
What is Net Operating Income?
How would you calculate it?
TBC
61
Have you valued a BTL / HMO property?
What RICS guidance are you aware of in relation to this?
What are the key principles?
TBC
62
What key factors might affect the impact on the market of a large release of new build property?
TBC
63
Can ‘hope value’ be considered in valuations falling under UK Appendix 10?
TBC
64
If Market Value is assessed prior to or during construction, should the valuation reflect the evidence and market at the date of valuation or an
assumed completion date?
TBC
65
Is there a set discount for a new build premium?
TBC
66
What do RICS say about sales incentives?
TBC
67
Should you reflect sales incentives in your valuation?
TBC
68
Where would you find details of incentives?
TBC
69
What are some of the ways that a home can be offered at a reduced price?
TBC
70
For houses with restrictions on occupancy, e.g. by income or job type, what is a typical discount used in the market?
TBC
71
What is a new build warranty?
TBC
72
How long would a typical warranty last for?
TBC
73
If a property was built in the last 10 years and does not have a professional certificate or guarantee/warranty, would this affect value?
TBC
74
What are the two special assumptions relating to Projected Market Value (PMV) and when would you adopt PMV?
TBC
75
What are some of the types of home finance product?
| Who further regulates valuations for home finance products?
TBC
76
What are the key differences between a lifetime mortgage and a conventional mortgage?
TBC
77
Would the amount of mortgage debt to be redeemed at the end of a lifetime mortgage term be less or more than that of a conventional mortgage?
TBC
78
What is home reversion?
TBC
79
What is sale and rent back?
TBC
80
What is a home purchase plan?
TBC
81
What are the bases of value for a registered social landlord’s housing stock for secured lending purposes?
TBC
82
What is a statutory valuation?
TBC
83
Who is responsible for Council Tax valuations?
TBC
84
What Council Tax bands exist in England?
TBC
85
What is the basis of value for Council Tax valuations?
TBC
86
What assumptions are made in a Council Tax valuation?
TBC
87
What is the Right to Buy?
| What legislation relates to Right to Buy?
TBC
88
When might a lender instruct a drive-by valuation?
TBC
89
What is the impact of the Rentcharges Act 1977?
TBC
90
Until 22 August 2037, how should rentcharges be dealt with?
TBC
91
Within what general distance of a dwelling might Japanese Knotweed have a material impact on value?
TBC
92
Do RICS publish any guidance on leasehold reform?
TBC
93
What right did the Leasehold Reform Act 1967 introduce?
TBC
94
What is the definition of a house under the Leasehold Reform Act 1967?
TBC
95
What are the qualification criteria to acquire the freehold of a house?
TBC
96
How long is a ‘long tenancy’?
TBC
97
Which section are the bases of valuation set out in?
TBC
98
What does the Section 9 (1) basis of valuation comprise?
What does the Section 9 (1A) basis of valuation comprise?
What does the Section 9 (1C) basis of valuation comprise?
TBC
99
Which is the most favourable basis of valuation?
TBC
100
How is a claim to acquire a freehold started?
TBC
101
What is the main impact of the tenant’s notice?
TBC
102
How long does a landlord (reversioner) have to reply to the tenant?
TBC
103
If a landlord intends to reoccupy or redevelop, what Sections can they rely on?
If the parties cannot agree on a price, where is the matter referred to?
TBC
104
What is marriage value?
TBC
105
What is hope value?
TBC
106
How is marriage value calculated?
TBC
107
What is the deferment rate?
TBC
108
What right did the Leasehold Reform, Housing and Urban Development Act 1993 introduce?
TBC
109
What is the basis of a new lease for a flat under the 1993 Act?
TBC
110
What is the basis of valuation in Schedule 13 for the new lease premium under the 1993 act?
TBC
111
How long can a lease be extended for?
TBC
112
Is a premium payable upon the grant of an extended lease?
TBC
113
What are the additional qualification criteria if the long leaseholder of a house wishes to extend their lease (rather than acquire the freehold)?
TBC
114
What are the ways to calculate a modern ground rent?
TBC
115
What precedent was set in the Sportelli v Cadogan Estate (2008) case?
How is the generic rate in Sportelli calculated?
TBC
116
Does a leaseholder have to pay the landlord’s reasonable professional costs?
TBC
117
What valuation approach should be used to assess the value of the freeholder’s loss (or landlord’s diminution in value)?
TBC
118
When does marriage value generally become payable?
TBC
119
What is collective enfranchisement?
What does the collective enfranchisement price under Schedule 6 include?
TBC
120
What is the Delaforce (1970) effect?
TBC
121
Explain your understanding of Sloane v Mundy and Reiss v Ironhawk Ltd.
TBC
122
Explain the impact of Cadogan Square Properties Ltd v Earl Cadogan and Cadogan v Erkman.
TBC
123
What is an adverse differential?
TBC
124
What is leasehold relativity?
TBC
125
Explain what you understand in relation to the issue of 'down valuation'.
TBC
126
What RICS guidance relates to residential leasehold properties and secured lending valuation? What principles from this are you aware of?
TBC
127
What sections of the Red Book and the UK National Supplement should this guidance be read alongside?
TBC
128
What length of unexpired lease term does the guidance relate to?
Why does it not relate to unexpired lease lengths below this?
TBC
129
What factors might affect the valuation of a leasehold property according to the Guidance Note?
TBC
130
What assumptions might be made in this type of secured lending valuation?
TBC
131
What special assumption might be agreed and why, with the lender client?
TBC
132
What methods are available to value a leasehold property and when/why might you adopt each?
TBC
133
When would you use a leasehold relativity graph?
TBC
134
What would you use a magnet / plumb bob / spirit level for during an inspection?
TBC
135
How would you value a property affected by Japanese Knotweed?
TBC
136
What does the legal case of Ryb v Conways (2019) say about the valuation of property affected by Japanese Knotweed?
TBC
137
What valuation approach does the RICS recommend is taken when valuing property is affected by Japanese Knotweed?
What guidance sets this approach out?
TBC
138
How can a NIY of zero be achieved?
TBC
139
In a scenario where rents are static and the capital value increases, would you expect yields to increase or decrease?
TBC
140
What impact does tenure/supply/location/immediate environment/structural condition/ specification/energy efficiency have on value?
TBC
141
What is the current version on the Red Book (global)?
TBC
