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Valuation Tutorial, Aberystwyth, 2 July 2015


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Slides for a short valuation update tutorial for CAAV (Central Association of Agricultural Valuers) Examination candidates for discussion on 2 July 2015 at Aberystwyth.

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Valuation Tutorial, Aberystwyth, 2 July 2015

  1. 1. Charles Cowap MBA MRICS FAAV Valuation Update CAAV Valuation Tutorial Aberystwyth 2 July 2015
  2. 2. Charles Cowap MBA MRICS FAAV 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 Value Fair Value Worth Existing Use Value Other Basis?? Competence Purpose Assumptions Special Assumptions Inspection etc Sales comparison Investment approaches DRC Other? Extensive Revaluation Reinspection Appropriate publication
  3. 3. Charles Cowap MBA MRICS FAAV 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)
  4. 4. Charles Cowap MBA MRICS FAAV 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)
  5. 5. Charles Cowap MBA MRICS FAAV 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)
  6. 6. Charles Cowap MBA MRICS FAAV 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
  7. 7. Charles Cowap MBA MRICS FAAV 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
  8. 8. Charles Cowap MBA MRICS FAAV Question Time
  9. 9. Charles Cowap MBA MRICS FAAV Contact Details Translating new knowledge for rural professional practice   07947 706505 Twitter: @charlescowap Blog: Slideshare: