Valuation Tutorial, Aberystwyth, 2 July 2015

Charles CowapMBA MRICS FAAV

Valuation Update

CAAV Valuation TutorialAberystwyth2 July 2015


Revisited ~

Valuation: a broad scheme

Agree Terms of Engagement

Must include: Defined Basis

of Value ....

Apply Valuation Methods

Formal Reporting

Requirements

Follow up advice -

publication issues

Market ValueFair ValueWorthExisting Use ValueOther Basis??

CompetencePurposeAssumptionsSpecial AssumptionsInspection etc

Sales comparisonInvestment approachesDRCOther?

Extensive RevaluationReinspectionAppropriate publication


Past written papers: 2010-2014

2010• Rent reviews on farms• Commercial rents• Conversion costs• Yield!!! (1 mark)2011• Part One Claim?? (4 marks)2012• Utility compensation – landlord and tenant (conflict?)• FBT Rent review basis (4 marks)


2013• MV of a small estate – key factors and different ‘methodologies’

– Arable land in hand– Arable land on 5 year FBT, 4 years to go– Arable land, tenancy commenced 1 June 1984– Modern 3 bedroom cottage, subject to Ag Tie

• 5 marks each!

• CPO for a trunk road – should it be a DCO?– The 6 rules ….. (s5, LCA 1961) (6 marks)– Outline Heads of Claim – no figures required (4 marks)


2014• Mobile phone mast rent review basis (2 marks)– Factors affecting rent (6 marks)– Approx rent after review and Approx sale value of

landlord’s interest (for 3 marks – explain your workings)• Basis of value for land for Fred who wishes to sell

his one third share in a farm, occupied under AHA by his brother Bill who is also a one-third owner. (14 marks) Who might be the prospective purchasers? (2 marks)


Ham v Ham [2013] EWCA Civ 1301

• Farming partnership– Young John leaves family partnership– Mum and dad elect to buy out share

• Calculation of ‘net value’?– John had introduced no capital– Land shown at book value– Book value or market value?

• Market value– Need for clarity in partnership agreements


Freemont (Denbigh) Ltd v Knight Frank LLP [2014] EWHC 3347 (Ch)

• A former asylum• A valuation for secured lending• Was Knight Frank liable when P relied on it to judge an offer

on the property?• NO

– Exclusively for secured lending purposes


Question Time


Contact DetailsTranslating new knowledge for rural professional practice

[email protected] 07947 706505Twitter: @charlescowapBlog: http://charlescowap.wordpress.com/Slideshare: http://www.slideshare.net/cdcowap

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Valuation Tutorial, Aberystwyth, 2 July 2015

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