Valuation Level 2

Question 1

Unit 23 Manvers - Talk me through each stage of your comparable valuation.

Answer 1

Look at current value, how long ago was it set, take opportunity to increase, other tenants at hand Manvers + Colliers, emailed agent for recent values, took info on in good faith, council tends to be cheaper

Question 2

Unit 23 Manvers - Why were the most recent lettings the most useful?

Answer 2

Not out of date

Question 3

Unit 23 Manvers - How did you adjust for quality and age?

Answer 3

Ensure rents don’t meet and Manvers remains cheaper

Question 4

Suite H Cotgrave - Talk me through the RPI calculation.

Answer 4

Calculation: (Base rent x Recent RPI) / previous RPI increases the rent by same amount RPI has increased

Question 5

Suite H Cotgrave - Why did the rent have a cap?

Answer 5

Agreed on occupation, entices tenants, less risk for them

Question 6

What are your Valuation Level 2 examples?

Answer 6

Unit 23 Manvers Business Park
When letting the property, I performed a valuation using comparable market evidence to determine the new rent. I review the previous rent, when it was set, and how the market had changed. I checked the rents of other units in the business park, focusing on the most recent lettings. I ensured that I checked the values at other business parks in the area to ensure there were no discrepancies with my other evidence, in these situations I would factor in the quality and age of the other business parks as those factors can influence their valuations.

Suite H Cotgrave Business Hub
A rent review came due to be increased by RPI, upwards only, up to a maximum of 8%.
I took the RPI Index and divided it by the RPI Base Rate, I then multiplied this by the Base Rent to come up with the new rent.
As this value ended up being more than an 8% increase to the rent it was not used, and the new rent was set at the 108% maximum rent cap.

56 Hallfields, Edwalton
The resident approached the Council to enquire about purchasing land bordering their garden, in the first instance I inspected and measured the land. I then determined what use the land may have and how it could affect the value of the purchaser’s property. Here it was usable only as garden land and valued on a price per square meter basis using previous sales data. In other cases, land could add a parking space or room for an extension, resulting in differing valuations.