Provide a brief explanation using an example to illustrate the method.Explaining and justifying why the procedures, preparation and presentation of valuation

Applied Valuation

Description

Prepare a report for your line manager that contains the following (stating any assumptions

necessary):

a. The synergistic (marriage) value that may be realised from combining the interests at 16

Silver St, as well as your recommendations as to offers which your client should make to

the tenant.

b. The value of the factory freehold interest. You should also explain the elements that a

valuer must consider when carrying out a valuation of a contaminated property.

c. An estimation of the new level of rent for the warehouse, which the parties are likely to find

acceptable.

d. In their correspondence with your firm, the clients have mentioned that they are aware of

the concept of true equivalent yield but are unsure what this means or how this is

calculated. Provide a brief explanation using an example to illustrate the method.

e. The client has also stressed that they need valuation advice quickly. The end of the

financial year is approaching and have asked if your employers can just provide the

valuation figures as they do not require a valuation report nor any additional information.

Your line manager has asked you to draft a short memo to the client, as part of your report,

explaining and justifying why the procedures, preparation and presentation of valuation

reports, as required by the RICS Valuation – Global Standards (effective from 31st January

2020), are important.