1. We will advise the Client as to our opinion of the value of the relevant interest in the property, as specified by the Client.
2. The purpose for which the valuation is required shall be as agreed between the Client and ourselves.
3. Unless otherwise specifically agreed the value advised by ourselves will be the market value current at the date of the valuation.
4. Market Value is defined as:
The estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm's-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.
The interpretive commentary as set out in the RICS Valuation Standards (PS3.2) has been applied.
5. Market Rent is defined as:
The estimated amount for which a property or space within a property, should lease (let) on the date of valuation between a willing lessor and a willing lessee on appropriate lease terms in an arm's-length transaction after proper marketing wherein the parties had acted knowledgeably, prudently and without compulsion.
As per RICS Valuation Standards (PS3.4).
6. Projected Market Value of Residential Property is defined as:
The estimated amount for which a property is expected to exchange at a date, after the date of valuation and specified by the valuer, between a willing buyer and a willing seller, in an arm's-length transaction, after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.
Based on RICS Valuation Standards (UK PS3.3).
7. Valuations for the purpose of possession or sale of a repossessed property shall be on the basis of Projected Market Value (PMV), assuming:
a) The property is unoccupied and all furnishings/fittings removed during the marketing period.
b) The vendor (mortgagee) must sell within a reasonable period to recover the secured debt.
RICS Standard (UK PS4.2) applies.
8.0 Unless otherwise expressly agreed, we will assume the following:
8.1 That vacant possession is provided.
8.2 All valid planning permissions and statutory approvals for the buildings and their use, including extensions or alterations, have been obtained and complied with.
8.3 No damaging or hazardous materials or techniques have been used; no contamination or landfill ground exists.
8.4 The property is not subject to unusual or especially onerous restrictions or outgoings and has good title.
8.5 The property is unaffected by any issues revealed in Local Search or statutory notices and is not unlawful in use or condition.
8.6 An inspection of uninspected parts or a full survey would not reveal defects that would alter the valuation.
8.7 Newly built properties are constructed under NHBC, Zurich, Housing Association Property Mutual Scheme, Premier Guarantee, or by an acceptable professional consultant.
8.8 The property is connected to, and entitled to use, the main services under normal terms.
8.9 Sewers, mains services, and access roads have been adopted, and leases provide rights to all communal areas and facilities.
8.10 For incomplete new builds, satisfactory completion is assumed.
8.11 For flats or maisonettes, unless otherwise instructed:
a) Repair/maintenance costs are fairly shared.
b) Enforceable covenants exist between leaseholders or through the landlord.
c) No onerous liabilities exist.
d) No substantial defects are expected to cause service charges exceeding 10% of Market Value in the next 5 years.
8.12 For leaseholds, assuming no better knowledge:
a) Lease term unexpired is 70 years; no action for extension/freehold acquisition.
b) No exceptionally onerous leaseholder covenants.
c) Lease cannot be terminated except for serious covenant breach.
d) All lease terms are consistent across freeholders/head/sub-head leaseholders.
e) Terms are mutually enforceable.
f) No covenant breaches or disputes exist.
g) All leases in the development are materially the same.
h) Ground rent is fixed for the remaining term.
i) Management is either by the freeholder or bonded managing agent.
j) No significant changes in use or occupancy patterns are expected.
k) Lease terms apply only to the subject block, with shared costs only for common areas.
l) Necessary rights/reservations exist for subdivided developments.
m) No unusual assignment or sub-letting restrictions.
n) No claims or litigation are outstanding for this or nearby leases.
o) Additional facilities are adequately covered by lease and do not involve extra charges beyond the service charge.
p) Insurance assumptions:
(i) Property is covered for all risks, including subsidence, heave, and landslip.
(ii) Insurance is available on normal terms.
(iii) No outstanding claims or disputes.
(iv) Leases provide for mutual enforcement of insurance/repair obligations.
(v) Landlord (if applicable) is required to rebuild in compliance with current building and planning laws.
We will provide to the Client a written report setting out our opinion of the market value of the property. This report will be confidential and may only be shared with professional advisers assisting the Client. It may not be reproduced in whole or in part without written permission.
Our report will be provided as soon as reasonably possible after inspection and investigations. Any verbal comments provided beforehand are given in good faith. The Client should not act on these until the full report is received and studied.
The Client agrees to pay MC Surveying the agreed fee for the valuation. In addition, VAT at the prevailing rate will be payable. The fee must be paid in advance, and the inspection/report will not proceed until full payment is received.