Commercial Asset Management. Procedure 1 (P1) - Valuation. Checklist P1 VALUATION CHECKLIST & PERFORMANCE INDICATOR. Date Commenced: Date Due:

Transcription

1 Commercial Asset Management Procedure 1 (P1) - Valuation Checklist P1 VALUATION CHECKLIST & PERFORMANCE INDICATOR Date Commenced: Date: Date Due: INVESTIGATION Case Officer: Property Address: 1 Vacant Property Procedure complied with 2 Review file & prepare notes ECS Unit Ref: ECS Tenant Ref: 3 External inspection 4 Internal inspection & measurement Ward: ALMO: Tenant: VALUATION 1 Gather comparable evidence File Ref: INSTRUCTION Date 2 Calculate RPI increase if appropriate 3 Valuation carried out NB Comply with RICS Valuation Standards 1 Date instruction received (M) 2 Terms of engagement agreed 3 Basis of value agreed REPORTING / APPROVAL 1 Report prepared 2 Date Valuation approved by authorised officer (M) 3 Close File

2 Checklist Std Form Linked to Another Procedure Milestone 1 INSTRUCTION 1.1 Date instruction received. (To include plan of site/building) Terms of engagement to include level of investigation required. (e.g. Desktop, Drivepast or Full Survey) Target date for completion Keys provided. M VPDF provided where necessary. 1.3 Basis of value agreed. 2 INVESTIGATION Read file and prepare notes on history Check Planning / Highways status if applicable. 2.2 External inspection to include photographs. 2.3 Internal inspection and measurement in accordance with RICS Code of Measuring Practice. (Refer to VPDF before entering property for Health and Safety). 3 VALUATION 3.1 Gather comparable evidence from usual sources to include CAM Comparable Schedule and private comps. 3.2 Calculate RPI increase if appropriate Analyse comparables in relation to property being valued.

3 4 REPORTING / APPROVAL 5 CASE COMPLETION Carry out Valuation in accordance with the agreed basis, terms of engagement and RICS Valuation Standards. 4.1 Prepare report in standard form to include the following; Client Purpose Property address Basis of value (Definition to be provided in full) Date of valuation Currency adopted Assumptions Special Assumptions Reservations Extent of investigation Sources of information Consent or restrictions on publication Confirmation that the valuation accords with RICS Valuation Standards Statement of valuation approach Opinion of value, in words and figures Signature Date of the report 4.2 Valuation to be approved by authorised officer 4.3 Inform client department as requested. 5.1 Ensure checklist is fully completed and close file. V1/V2 V3 M

4 Operating Procedure Valuation CONTENTS Go to : LEAD OFFICER DEFINITION BASES OF VALUATION SIGNATURE AND APPROVAL FEES PERFORMANCE MEASUREMENT TARGETS PROCEDURE CHECKLIST LEAD OFFICER (Return to CONTENTS ) DEFINITION (Return to CONTENTS ) A valuation for the purposes of this procedure is defined as the provision of a written opinion as to capital price or value, or rental price or value, on any given basis in respect of an interest in property, with or without associated information, assumptions or qualifications. Property it to be construed as applying to all rights and interests in land (with and without buildings) BASES OF VALUATION (Return to CONTENTS) Valuations are undertaken according to the Royal Institution of Chartered Surveyors Appraisal and Valuation Manual (RICS Red book) and on the bases defined therein. The main bases under are :- 1. Market Value (MV) 2. Open Market Value (OMV) 3. Existing use Value (EUV) 4. Existing Use Value for Social Housing (EUV-SH) 5. Estimated Realisation Price (ERP) 6. Depreciated Replacement Cost (DRC) 7. Open Market Rental Value (OMRV) 8. Estimated Future Value (EFRV)

5 LEVEL OF WORK Three levels of valuation are undertaken defined as desk top, drive past and full valuation. The amount of work undertaken and hence reliability varies according to the level used. 1. A desktop valuation is carried out in the office utilising and information available e.g files, plans. Photographs etc. 2. A drive past includes the above plus an external inspection. 3. A full survey includes the above plus and inspection/ survey of the land/property. SIGNATURE AND APPROVAL (Return To CONTENTS) All valuations need to be signed by the case officer and approved and countersigned by an Authorised Surveyor who shall be RICS qualified, with supervisory responsibility and grade PO4 Or above. In some sections the Authorised Surveyor may be a dedicated named officer within these parameters. Revisions to valuations are to be approved by an appropriate section head (or above) who is RICS qualified. VALUATIONS TO BE USED IN NEGOTIATIONS Where a figure is to be negotiated with a third party, prior to negotiations commencing, the case officer must carry out a valuation. Have this approved and include a minimum and maximum figure to establish negotiating parameters. Any figure outside the negotiating parameter, due to new information (e.g Abnormals) will require further valuation work. This is to be attached to the original valuation and summarised in the space provided on the front of the valuation front sheet. PERFORMANCE MEASUREMENTS (Return to CONTENTS ) Note, this information is only collected for valuations done as separate pieces of work for an identified client, ( eg Asset Management Unit, other Departments etc) and would not include valuations undertaken as part of a larger piece of work eg disposals. 1. ECONOMY Hours of staff time from date of receipt of instruction (including VPDF if required) in LDA to date of report. 2. EFFICIENCY Length of time from date of receipt of instruction (including VPDF if required) in LDA to date of report TARGETS (Return to CONTENTS) None set