Valuation and Ethics

    LO1 Critically evaluate valuation methodologies and their uses LO2 Critically appraise aspects of ethics and regulation and provide reasoned solutions and advice to ethical problems LO3 Critically analyse comparable rents, yields and capital values, to evaluate the current UK and international property markets in a range of sectors LO4 Develop basic valuation reports and provide justified solutions to a range of real estate valuation problems Scenario You are employed as a graduate surveyor by Castlebrook, a firm of general practice surveyors. A well-established client, Cathedral Properties Ltd, owns a portfolio of different types of real estate. Castlebrook have been asked for advice concerning two properties from their portfolio. Property 1 The first property comprises a ground floor mid-parade lock-up shop, with the following internal dimensions: Internal width (at front): 7.65m Shop depth: 26 m At a depth of 15m the shop widens for the remainder of the shop by 3m giving an internal width of 10.65m. The shop provides an ‘L’ shape configuration. Within the shop there are three columns spaced at 5m intervals from the frontage. These columns measure 0.45 m by 0.45m. At the rear of the shop there are WCs measuring overall 1.8m by 1.8m. Property 2 The second property is a vacant office building known as Belmont House, situated on Belmont Business Park. Belmont Park was built in 2010 and comprises 10 modern office buildings, situated on the edge of a large regional city. Basic details of the subject property are as follows: Address: Belmont House, 1 Belmont Business Park. Title: Freehold. Three-storey open-plan office. Total accommodation 1,950 square metres (20,990 sq ft) International Property Measurement Standard 1 (IPMS 1) with 20 car parking spaces. Freehold interest to be placed on the market imminently. © University College of Estate Management 2020 Page 3 of 11 Table 1: Comparable Evidence – Belmont Business Park Address Description Lease terms Floor areas Transaction/Ren t p.a.