Valuation Level 2 Flashcards
What is a loan security valuation?
A loan security valuation is a detailed report which allows banks (and other money lenders) to make a better informed decision about whether a loan should be issued and how much they could lend you safely.
What is VPGA?
Valuation practice guidance – application
What section of the Red Book relates to loan security valuations?
VPGA 2 Valuation of interests for
secured lending
What are VPS?
Valuation Practice Standards
What part of the Redbook relates to Terms of Engagement?
VPS1
What is involved in Terms of Engagement for Sydenham and Holland Park?
VPS1
- Client / Bank Name and address
- Accordance with RICS Red Book 2021
- Purpose of Valuation
- Valuation Date
- Fees
- Complaints handling procedure
- Liability = 33% of value
- Indemnity insurance
- Special Assumptions
What part of the Redbook relates to inspection?
VPS2
What are the important points on an inspection?
- Measure in line with RICS Property Measurement 2018 (OR IPMS where possible?
- Make detailed commentary in line with VPGA 8
- Take photos
In your level 2 example (Sydenham or Holland Park), what did you include within the report that related specifically to loan security, rather than any other valuation purpose?
What is an assumption?
Assumption is made where it is reasonable for the valuer to accept that something is true without the need for specific investigation or verification.
What is a special Assumption?
As special assumption is made when you make something this is different from the facts
What did you measure in accordance to?
RICS Property measurement 2022
When did IPMS come into place
2018
If you didnt use IPMS what do you do?
Have to inform client of the benefits of using it?
What IPMS relates to residential?
