Aylesmore Farm
Talk me through how you made adjustments for the comparable evidence
Collected comparable evidence of properties that had sold recently, within the locality and with similar features.
Aylesmore Farm
Why was this exempt from the Red Book
Because it was an informal valuation for internal discussion purposes
Aylesmore Farm
What other valuations are exempt
- Agency or brokerage
- Acting as an expert witness
- Statutory function
- Negotiation or litigation
Aylesmore Farm
What did you include in your valuation report
Approx. 10 headings
1. Name of the holding
2. The client/who the report intended for
3. Introduction
4. Background Information
5. Historic planning
6. Ownership structure
7. Tenanted property
8. Description of buildings
9. Valuation figure
10. Valuation issues/summary
Aylesmore Farm
Did you include any assumptions?
Yes
- The buildings were in good condition
- The title is that of the Land Registry
- Vacant possession
- The structures have proper planning consent
Aylesmore Farm
How did the planning history affect the value
There was a lappsed planning application for a barn conversion. The building therefore had a value above agricultural value
Malvern Road
Why did you use the residual method?
To determine the market value of the development land.
Malvern Road
How did you find the necessary figures for your calculation?
- Market evidence
- Industry benchmarks
- Project specific estimates
Malvern Road
What is GDV?
The total estimated market value of a development, assuming it is fully complete on the valuation date and based on the market conditions at that time.
If the value is calculated using a income-based method, standard market assumptions should be used when considering buyers costs. The GDV should reflect the expected selling price agreed in a contract.
Malvern Road
How did you adhere to the Red Book
As this valuation was for agency purposes and therefore departs from the RICS Red Book.
Hilltop Farm
What did you include in the Terms of Business?
- Identification and status of the responsible valuer
- Identification of the client
- Identification of any other users
- Identification of the asset being values
- Currency
- Purpose of the valuation
7.Basis of value adopted - Valuation date
- Nature and extent of the valuers work
- All assumptions and special assumptions
- Format of the report
- Restrictions on use, distribution and publication of the report
- Confirmation that the valuation will be undertaken in accordance with IVS and or RICS Red Book Global Standards
- How the fee will be calculation
- The firms complaints handling procedure, with a copy available
- A statement outlining valuation may be subject to monitoring under RICS
- Any limitations on liability agreed
- Any ESG factors
Hilltop Farm
This valuation included assumptions, which VPS deals with assumptions?
VPS2 (Valuation bases, assumptions and special assumptions)
PS 1 - Compliance with standards where a written valuation is provided
PS 2 - Ethics, competency, objectivity and disclosures
VPS 1 - Terms of Engagement
VPS 2 - Bases of value, assumptions and special assumptions
VPS 3 - Valuation approaches and methods
VPS 4 - Inspections, investigations and records
VPS 5 - Valuation models
VPS 6 - Valuation report
VPGA 1 - Financial reporting
VPGA 2 - Secure lending
VPGA 8 - Real property interests
VPGS 10 - Material uncertainty
Hilltop Farm
How did you determine the most appropriate comparable evidence?
Collate similar property transactions (location, size, character) that have recently sold.
Hierarchy of evidence
Cat A - Direct transaction
Cat B - General market data
Cat C - Other sources
RICS Professional Standard - Comparable evidence in Real Estate Valuation (Oct 2019)
Should be;
- Comprehensive - there should be several comparables rather than a single transaction or event
- Very similar or even identical
- Recent
- The result of an arms length transaction
Verifiable
- Consistent with the local market practice
- The result of an underlying demand
Hilltop Farm
What advice did you give your client on associated risk with the range of buildings/tenancies?
- Security of tenure / restricted access e.g. VP
- Financial and legal liabilities e.g. tenant dilapidations/fixtures
- Planning and restriction of use
- Tax implications e.g. if a building is let for a commercial use it may not comply with APR
Woodstreet Farm
This valuation was for IHT, how does the purpose of the valuation affect the advice you give?
Purpose - IHT
Determines the basis of value and valuation date.
An appropriate basis of value is Market Value.
In accordance with the Red Book, the appropriate basis was Market Value, reflecting the price the property might reasonably achieve on the open market.
For IHT, the valuation date is a key consideration as the valuation must reflect market conditions at that point in time.
Valuation may be reviewed by HM Revenue and Customs or the Valuation Office Agency, advice must be well supported by comparable evidence and clearly reasoned. Any adjustments, such as AOC and planning status of the building, are transparently explained and supported by market evidence.
Woodstreet Farm
What was the date of the valuation?
23rd October 2025 / the date of the report /death
Woodstreet Farm
How did the AOC impact the value?
AOC limits the potential pool of buyers to those working in agriculture.
Discount on value because of this, can be from 10% - 40%.
This property was discounted by 30%
Comparable evidence was found of similar properties
Woodstreet Farm
How did you justify your adjustement for the AOC to the client?
AOC - Results in a reduction in value by placing a restriction on who is eligible to occupy and therefore who is interested in purchasing.
APR - Character appropriate test, not a home for retirement
Woodstreet Farm
What alternative scenarios did you advise them to consider?
Antrobus - 30% less than market value
- Character appropriate test
- Elephant test
Farncombe Office
How did you determine the yield?
Look at comparable evidence of the sale of other investment properties in the area
Farncombe Office
What yield did you use?
10%
Farncombe Office
Briefly talk me through this valuation
Red Book valuation conducted for internal auditing purposes.
Farncombe Office
What is capital value?
The current market value or total worth of an asset if sold today
Farncombe Office
What information did you provide your client alongside the valuation report?
Comparable evidence of the sale and letting of similar commercial property in the area
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