Valuation Level 2 Flashcards
Unit 23 Manvers - Talk me through each stage of your comparable valuation.
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
Unit 23 Manvers - Why were the most recent lettings the most useful?
Not out of date
Unit 23 Manvers - How did you adjust for quality and age?
Ensure rents don’t meet and Manvers remains cheaper
Suite H Cotgrave - Talk me through the RPI calculation.
Calculation: (Base rent x Recent RPI) / previous RPI increases the rent by same amount RPI has increased
Suite H Cotgrave - Why did the rent have a cap?
Agreed on occupation, entices tenants, less risk for them
What are your Valuation Level 2 examples?
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.
What is your experience of Capital Valuations?
I don’t perform any capital valuations as part of my role. I have shadowed my colleague going some asset valuations before. I wouldnt be comfortable doing any myself and would hire an RICS registered valuer to do one for any real scenario.
Explain the calculation of a term and reversion valuation?
The term and reversion method is often used to value under-rented properties.
The fixed income is known as the term, and the income from the next time the rent is reviewed is known as the reversion.
One yield is applied to the current term income, and another, different yield, is applied to the reversionary income. The resulting capitalised and discounted sums are added together to form the property’s present value.
