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Introduction to the role of the Chartered Surveyor in the valuation of real estate / property assets and interests

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  1. 1. The Valuation of Real Estate An introduction to the Chartered Surveyor’s role
  2. 2. Introduction <ul><li>The are a huge number of reasons for valuing an interest in property. It takes expert advice to ensure you get an accurate and reliable result which is fit for purpose. </li></ul><ul><li>This presentation is intended to act as a brief introduction to the role of the Chartered Surveyor in providing valuations and advice to clients. </li></ul><ul><li>The content is based on the experiences of the author. It is not endorsed by Daniel Watney or the RICS and is not intended to be reproduced, quoted or relied upon etc. </li></ul>
  3. 3. What does a surveyor do? <ul><li>A Chartered Surveyor is a specially qualified professional who can provide advice across a range of property related matters. </li></ul><ul><li>The valuation aspect of the surveyor’s role is one of the most important and is specifically regulated by the RICS in the RICS Valuation Standards (6 th Edition) </li></ul><ul><li>A Chartered Surveyor will identify what a client requires from the valuation, the nature of the property being valued and the best method of valuing it. </li></ul><ul><li>A Chartered Surveyor will provide a report containing information about the property, the markets and the valuation figure. </li></ul>
  4. 4. What does a surveyor ask? <ul><li>What am I valuing? </li></ul><ul><li>Identifying the tangible and intangible benefits is vital to arriving at a figure which is fit for the client’s purpose. </li></ul><ul><li>Why am I valuing? </li></ul><ul><li>Identifying the purpose for carrying out a valuation can have a direct effect on what is valued and how the exercise is approached. </li></ul><ul><li>How am I valuing? </li></ul><ul><li>Identifying the most suitable method will ensure a reliable and accurate figure is reached. </li></ul>
  5. 5. What? <ul><li>The tangible aspects of a property are effectively the land and structures upon it. The long history of land law in Britain has provided us with a framework for identifying the extent of the tangible assets to be valued. </li></ul><ul><li>The intangible aspects are also identifiable through the framework of land law. In essence, the intangible assets are the rights over the land which are detailed in the title documents. </li></ul><ul><li>In many cases, the client’s requirement of a valuation will mean that assumptions are made which do not reflect the existing reality of the land and rights over it. A Chartered Surveyor can advise a client on the likely impact of these special assumptions and incorporate them into the valuation process. </li></ul>
  6. 6. Why? <ul><li>Getting to the bottom of this question is essential. Some types of valuations are required and regulated by legislation. This can change the valuation process and final figure. Here are just a few of the reasons: </li></ul><ul><ul><li>Acquisition & disposal; </li></ul></ul><ul><ul><li>Secured lending; </li></ul></ul><ul><ul><li>Financial statements; </li></ul></ul><ul><ul><li>Takeovers and mergers; </li></ul></ul><ul><ul><li>Collective investment schemes; </li></ul></ul><ul><ul><li>Unregulated property unit trusts; </li></ul></ul><ul><ul><li>Capital gains & inheritance tax. </li></ul></ul>
  7. 7. How? <ul><li>The method of valuation is dependent on the ‘what’ and ‘why’ elements. There are a few key methods employed. In many cases, two or more methods are employed in one valuation in order to arrive at a figure or just as a means of checking the accuracy of the primary method. </li></ul><ul><li>Legislation can have a significant effect on the method employed. A Chartered Surveyor will be aware of the legislation and able to advise a client accordingly. </li></ul>
  8. 8. Conclusion <ul><li>The valuation report is the final document and contains the wealth of information which the surveyor has relied upon in reaching the final figure. </li></ul><ul><li>In addition to the facts and assumptions, a Chartered Surveyor will provide a commentary on the market and may include some discussion of the key factors involved in reaching the valuation figure. </li></ul><ul><li>The valuation figure is ultimately the sum of a Chartered Surveyors research and experience. </li></ul><ul><li>The regulation of Chartered Surveyors carrying out valuations is intended to protect the client and ensure a high standard of accuracy and consistency is achieved. </li></ul>
  9. 9. Who wrote this? <ul><li>My name is Tim Wordsworth and I am a Chartered Surveyor working for a firm called Daniel Watney. </li></ul><ul><li>Thanks for reading, if you have any questions please let me know. </li></ul>