Valuation Techniques And Issues 2 Flashcards
What is the Annual Tax on Enveloped Dwellings?
It aims to stop on-shore and off-shore individuals from using companies to avoid SDLT for residential property.
What is the current threshold for the Annual Tax on Enveloped Dwellings?
The current threshold is £500,000.
How often are revaluations required for the Annual Tax on Enveloped Dwellings?
Revaluations are required every five years.
What should you do if you intend to undertake work on a party wall?
You must inform all adjoining owners of your intention to undertake any work on the party wall.
What is the RICS Guidance Note related to Rights to Light?
There is an RICS Guidance Note: Rights of Light, 2016.
How is a right to light established?
The right to light arises after twenty years of uninterrupted enjoyment of light without the consent of a third party by way of an easement with a prescriptive right.
What can happen if a right to light is infringed?
An injunction can be granted, or damages awarded.
What landmark case is associated with Rights to Light?
A landmark case is HKRUK II (CHC) Ltd (a subsidiary of Highcross) v Heaney (2011).
What was the outcome of the HKRUK II case?
Highcross was left with a remedial works bill and a mandatory injunction to reduce the scale of its extended Toronto Square scheme in Leeds.
What is the RICS Consumer Guide related to Rights to Light?
It was published in April 2022 for home-owners.
What is a surrender and renewal valuation?
It occurs when the landlord/tenant wants a surrender of the existing lease and agrees to grant a new lease simultaneously.
What is required for surrender and renewal valuations?
Calculation of a premium to reflect the change in the value of the leasehold interest.
What does the Charities Act 2011 require regarding asset disposal?
Trustees of a charity must obtain a valuation prior to the disposal of an asset in accordance with Section 119.
What changes did the Charities Act 2022 introduce?
It made changes to the legal requirements for disposing of property and land, effective from June 2023.
What must the report confirm when a charity disposes of an asset?
The report must confirm that the charity has obtained the best terms for the transaction.
What does the new Charities Act simplify?
It simplifies the requirements for the report and widens the categories of potential advisers charities can use.
How does Red Book Global define a special buyer?
A particular buyer for whom a particular asset has special value because of advantages arising from its ownership that would not be available to other buyers in a market.
What could generate special value in a transaction?
Special value may arise from the physical, functional, or economic association of the property with some other property.
What is an example of a special purchaser?
A tenant purchasing their freehold interest.
What are building cost reinstatement valuations used for?
For building insurance purposes.
What should be included in building cost reinstatement estimations?
Add VAT, demolition costs, professional fees, planning and building regulation fees, and inflation allowance if applicable.
Is a replacement cost figure for insurance purposes a ‘written opinion of value’?
No, it is not a ‘written opinion of value’ so Red Book Global compliance is not required.
