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5.06

All valuation reports should normally contain the following information:—

(1) a description of each property including:—
(a) an address sufficient to identify the property, which should generally include postal address, lot number and such further designation as is registered with the appropriate government authorities in the jurisdiction in which the property is located;
(b) a brief description (e.g. whether land or building, approximate area, etc.);
(c) the existing use (e.g. shops, offices, factories, residential, etc.);
(d) the Ground/Government Rent;
(e) a summary of the terms of tenants' leases or underleases (including repairing obligations, where material);
(f) the approximate age of buildings;
(g) the terms of tenure;
(h) the terms of any intra-group lease granted by a parent company to a subsidiary on property occupied by the group (identifying the properties);
(i) the capital value in existing state at the effective date as at which the property was valued;
(j) the current planning or zoning use;
(k) the options or rights of pre-emption concerning or affecting the property;
(l) the basis of and approach to valuation for the property interest;
(m) when the site was last inspected;
(n) summary of investigation carried out, including details of inspection, such as building conditions, availability of building services, etc.;
(o) nature and source of information relied on;
(p) details of title and ownership;
(q) details of encumbrances;
(r) how the properties are grouped together for each valuation certificate;
(s) names and qualifications of persons who carried out the site inspection; and
(t) any other matters which may materially affect the value;
(2) where the property is not in the process of being developed, details of rentals of the property including:—
(a) the existing monthly rental before profits tax if the property is wholly or partly let together with the amount and a description of any outgoings or disbursements from the rent, and, if materially different, the estimated current monthly market rental obtainable, on the basis that the property was available to let on the effective date as at which the property was valued;
(b) a summary of any rent review provisions, where material; and
(c) the amount of vacant space, where material;
(3) where the property is in the process of being developed the following additional details, where available:—
(a) details of development potential and whether architectural plans have been approved or planning consent has been obtained and any conditions imposed in respect of such approval;
(b) any material restrictions on development including building covenants and time limits for completion of the development;
(c) existing stage of development;
(d) estimated completion date;
(e) estimated cost of carrying out the development or (where part of the development has already been carried out) the estimated cost of completing the development;
(f) estimated capital value in existing state at the effective date as at which the property was valued;
(g) estimated capital value after completion;
(h) any material special or general conditions affecting the development of the property;
(i) any conditions imposed as to construction of roadways, pathways, drainage, sewage and other facilities or services for public use, if material;
(j) any sales arrangements and/or letting arrangements existing at the effective date as at which the property was valued; and
(k) any construction costs incurred up to the effective date as at which the property was valued;
(4) where property is held for future development purposes the following additional details, where available:—
(a) details of development potential and whether architectural plans have been approved or planning consent has been obtained and any conditions imposed in respect of such approval;
(b) any material special or general conditions affecting the development of the property including building covenants and time limits for completion of the development; and
(c) any conditions imposed as to construction of roadways, pathways, drainage, sewage and other facilities or services for public use, if material;
(5) a classification of the property according to the purpose for which it is held. The acceptable categories are:—
(a) property held for development;
(b) property held for investment;
(c) property held for owner occupation; and
(d) property held for sale;
(6) details of any agreement or proposals as to any proposed transaction regarding the property between the issuer and any other member of the group;
(7) the name of the valuer, his address and professional qualification;
(8) the effective date as at which the property was valued and the date of the valuation; and
(9) such other information as the Exchange may require.

Note: See Practice Note 12