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 to the above definition.
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 or appropriate lease terms in an arm's-length transaction after proper marketing wherein the parties had acted knowledgeably, prudently and without compulsion.
The interpretive commentary as set out in the RICS Valuation Standards (PS3.4) has been applied to the above definition.
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.
The interpretive commentary as set out in the RICS Valuation Standards (UK PS3.3) has been applied to the above definition.
7. Valuations of residential property for the purpose of possible possession proceedings, or the proposed sale of a repossessed property, shall be on the basis of Projected Market Value (PMV) subject to the following additional assumptions:
a) That during the marketing period the property has been unoccupied and that all furnishings and fittings have been removed;
b) That the vendor (the mortgagee) has to sell the property within reasonable period to recover the secured debt.
The interpretive commentary as set out in the RICS Valuation Standards (UK PS4.2) has been applied to the above definition.
8. Unless otherwise expressly agreed we will in arriving at our valuation of the property, make the following assumptions which we will be under no duty to verify:
8.1 That vacant possession is provided.
8.2 That all required valid planning permissions and statutory approvals for the buildings and for their use, including any extension or alterations, have been obtained and complied with.
8.3 That no damaging or hazardous materials or techniques have been used, that there is no contamination nor from the ground, and is not land filled ground.
8.4 That the property is not subject to any unusual or especially onerous restrictions, encumbrances or outgoing and that good title can be.
8.5 That the property and its value are unaffected by any matters which would be revealed by a Local Search (or their equivalent in Scotland and Northern Ireland) and replies to the usual enquiries, or by a Statutory Notice and that neither the property, nor its condition, its use, or its intended use, is or will be unlawful.
8.6 That an inspection of those parts that have not been inspected, or a survey inspection, would not reveal material defects or cause the valuer to alter the valuation materially.
8.7 That in case of a newly constructed property, it has been built under the NHBC Buildmark Scheme, Zurich Municipal New-Build and Rebuild Schemes, Housing Association Property Mutual Scheme, Premier Guarantee for Private and Completed Housing or equivalent, or by a professional consultant acceptable to a lender.
8.8 That the property is connected to and there is the right to use the reported main services on normal terms.
8.9 That sewers, mains services and the roads giving access to the property have been adopted, and that any lease provides rights of access and egress over all communal estate roadways, pathways, corridors, stairways and to use communal grounds, parking areas and other facilities.
8.10 That in the case of a new property, the construction of which has not been completed, the construction will be satisfactorily completed.
8.11 That where the property is part of a building comprising flats or maisonettes, unless instructed or otherwise aware to the contrary:
a) The costs of repairs and maintenance to the building and grounds are shared equitably between the flats and maisonettes;
b) That there are suitable, enforceable covenants between all leaseholds, or through the landlord and upon the freeholder/any feuholder;
c) There are no onerous liabilities outstanding; and
d) There are no substantial defects or other matters requiring expenditure (in excess of the current amount or assumed amount of service charge payable on an annual basis) expected to result in charges to the leaseholder of the subject property during the next five years equivalent to 10% or more of the Market Value being reported.
8.12 That, where the dwelling is leasehold and because the Valuer has no further and better knowledge or information:
a) The unexpired term of the lease is 70 years, and no action is being taken by any eligible party with a view to acquiring the freehold or to extending the lease term;
b) There are no covenants exceptionally onerous upon the leaseholder;
c) The lease cannot be determined except on the grounds of a serious breach of covenant in the existing lease agreement;
d) If there are separate freeholders, head and/or other sub-head leaseholders, the terms and conditions of all the leases are in the same form and contain the same terms and conditions;
e) The lease terms are mutually enforceable against all parties concerned;
f) There are no breaches of covenants or disputes between various interests concerned;
g) The leases of all the properties in the building/development are materially the same;
h) The ground rent stated or assumed is not subject to review and is payable throughout the unexpired lease term;
i) In the case of blocks of flats or maisonettes of over six dwellings, the freeholder manages the property directly or it is managed by a professional, properly bonded managing agent;
j) Where the subject property forms part of a mixed residential or commercially used block or development, there will be no significant changes in the existing pattern therein;
k) Where the property forms part of a development containing separate blocks of dwellings, the lease terms of the subject property apply only to the subject block, and there will be no requirement to contribute towards costs relating to other parts of the development, other than in respect of common roads, paths, communal grounds and services;
l) Where the property forms part of a larger development the ownership of which has since been divided, all necessary rights and reservations have been reserved.
m) There are no unusual restrictions on assignment or sub-letting of the subject property for residential purposes;
n) There are no outstanding claims or litigation concerning the lease of the subject property or any others within the same development;
o) Where the subject property benefits from additional facilities within the development, the lease makes adequate provision for the lessee to continue to enjoy them without exceptional restriction, and for the facilities to be maintained adequately, and that there are no charges over and above the service charge for such use and maintenance; and
p) In respect of insurance:
(i) The property will be insured under all risks cover, which includes subsidence, landslip and heave, for the current reinstatement cost;
(ii) The cover assumed is available on normal terms;
(iii) There are no outstanding claims or disputes;
(iv) Where individuals in a block make separate insurance arrangements, the leases make provision for mutual enforceability of insurance and repairing obligations; and
(v) Any landlord responsible for insurance is required to rebuild the property with such alterations as may be necessary to comply with the current building regulations and planning requirements.
9. We will provide to the Client a report in writing setting out our opinion of the market value of the property.
This report will be confidential to the Client. It may be disclosed to other professional advisers assisting the Client in respect of that purpose, but the Client shall not disclose the report to any other person. The report should not be reproduced in whole or in part without written permission.
10. Our report will be provided in writing as soon as reasonably possible after completing our inspection and investigations. Any verbal comments given to the Client prior to receipt of the full written report are given in good faith but, in order to avoid any possible misinterpretation or misunderstanding, the Client should not act upon these verbal comments until the full written report has been received and studied.
11. The Client will pay to MC Surveying the agreed fee in respect of this advice. In addition, the Client will pay the amount of any Value Added Tax on the fee at the appropriate prevailing rate. The fee is payable in advance and normally our inspection will not be undertaken and our report will not be released until payment, in full, has been received.