Valuation - lvl 3 Flashcards
891 Lea Bridge Road - upon receiving instruction, did you feel competent to accept the instruction?
Yes I was competent to undertake the instruction.
I had the necessary skills, understanding and knowledge to carry out the instruction.
891 Lea Bridge Road - did you have knowledge of the instruction and the market?
Yes I had the knowledge to undertake the instruction.
I had undertaken multiple valuation reports in the past and knew what process and methodology was required for the instruction.
891 Lea Bridge Road - can you tell me about market rent in the local area.
The market rent for shops at the date of valuation was approximately £35 to £40 per sq ft ITZA.
891 Lea Bridge Road - what was the rent psf at the time of review?
The passing rent for the shops at the date of valuation was approximately £30 per sq ft ITZA.
891 Lea Bridge Road - you mention the passing rent was under rented, when was the passing rent set?
The passing rent was set in June 2021 at the term commencement. I assumed it will revert to MR in the rent review which is year 4.
891 Lea Bridge Road - if it was over rented, what valuation method would you use?
I would use the core and topslice method.
891 Lea Bridge Road - tell me about the yield you applied.
I applied a lower yield of 4.50% to the passing rent until the reversion to MR. A applied a higher yield of 5.00% at reversion.
This was to reflect the added security that a below MR was being paid until the reversion was due.
143-145 Morning Lane - why did you report on a dual basis?
I am required to report on a dual basis according to the RICS Property Measurement which incorporates the RICS Code of Measuring Practice.
I had to measure on a dual basis because the comparables I sourced were analysed to GIA, which is adopted by the COMP.
143-145 Morning Lane - did you rely on one set of costs for modernisation?
I relied on multiple sets of costs for modernisation. I checked costs with valuation and building surveyors, and cross checked with BCIS.
143-145 Morning Lane - how did you quantify the vacancy?
I considered sales comparables for vacant three and five bedroom flats analysing them in relation to the subject property.
143-145 Morning Lane - did you offer advice to the client on the vacancy and the time it could take to relet?
I advised my client on vacancy and the time it could take to relet the property.
I advised that the strong residential letting market meant that residential accommodation would typically be let in a short timescale. Say 3 months.
143-145 Morning Lane - how does vacancy impact market value?
Vacancy would typically have an adverse effect on market value.
