Valuation - Zoning

Question 1

What can you tell us about zoning?

Answer 1

• It is a valuation technique not a method
• Allows for comparison for retail properties with a unit of comparison for different sized properties
• Rationale is that the rental value decreases the further into the shop you go
• Zones are every 9.14m
• Halve back *

Question 2

How would you carry out a zoning valuation?

Answer 2

• Collate and review all information and carry out statutory research
• Inspect to look for defects, surrounding use and to verify any information provided
• Measure on an NIA basis
• Calculate ITZA based on the halving back principle.
• The ITZA rent is x then x/2, x/4, x/8 etc. first floor
• Storage / basement is usually x/10
• Collect comparable evidence
• Calculate opinion on Value

Question 3

What Is mirrored zoning?

Answer 3

• Zoning technique for two frontages

Question 4

What is a party wall?

Answer 4

• A wall that stands astride the boundary of land belonging to two or more land owners
• Party wall act 1996 used for disputes

Question 5

What is masked zoning?

Answer 5

• Zoning technique used for the valuation of hidden or obscure areas