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. Charles Cowap
MBA MRICS FAAV
Valuation Update
CAAV Valuation Tutorial
Aberystwyth
2 July 2015
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. 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. 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. 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. 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. 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
9. Charles Cowap
MBA MRICS FAAV
Contact Details
Translating new knowledge for rural professional practice
cdcowap@gmail.com
07947 706505
Twitter: @charlescowap
Blog: http://charlescowap.wordpress.com/
Slideshare: http://www.slideshare.net/cdcowap