Valuation Level 2

Question 1

Why did you choose the comparative method?

Answer 1

In line with VPS 5 of the Red Book, I had regard to the nature of the asset as well as the purpose of the valuation when selecting the appropriate method.

No income stream attached to the property. It was owner occupied.

This is typically how a buyer in the market would approach their pricing. Looking on a per acre basis.

Question 2

Talk me through your key comparables

Answer 2

• My top comparable was Henderson Sports Club in Romford sold in October 23 at £85k an acre, c.10 acres – also in greenbelt – competitive process
• Long lane park, Wolverhampton – 8 acres – 90k per acre - 2019

Question 3

How did you find your comparables?

Answer 3

• rang up agent after seeing brochure
• some comps had been collected historiclally and were in our internal database

Question 4

Tell me about the property in Chislehurst

Answer 4

• The site comprises a sports ground located in Chisleurst, South East London
• Broadly rectangular demise, c.19 acre sports field with club house facilities.
• Held Freehold

Question 5

Tell me about the property in Marylebone

Answer 5

• Long leasehold tenure
• converted car park self storage property
• 2 floors
• refurbushed in 2020
• Located in Marylebone, an affluent area in central london
• good state of repair

Question 6

What is the definition of Fair Value?

Answer 6

‘The price that would be received to sell an asset, or paid to. transfer a liability, in an orderly transaction between market participants at the measurement date.

Question 7

Why is it important to verify comparable data?

Answer 7

To ensure as reasonably possible that your information is accurate

Question 8

Why was development at the site unlikely to be approved?

Answer 8

• From investigations into the Bromley council website
• Located within the Green Belt and is within the East Chislehurst Conservation area
• Additionally, the Local Plan supports the protection of sports and recreation facilities and enhancing existing provision.

Question 9

Tell me about the condition of the club house

Answer 9

• Appeared to be in a good condition commensurate of its age & use.
• Some rooms could be described as dated and there were signs of wear & tear including chipped paint & broken tiles.
• The toilet and shower facilities were very basic.

Question 10

Describe the Self storage property

Answer 10

• The property was a self storage facility converted from a historic car park in Marlyebone
• Refurbished in 2020
• Located in Marylebone, an affluent area in central London
• Good state of repair
• Building constructed around 1930 and converted to self storage around 2020.
• The building extends to approximately 6m in height with 2 structural levels and with 0 mezzanine levels. Construction is of reinforced concrete, underground car park under a flat roof.

Question 11

Talk me through the steps you took in carrying out the comparable method for your Sports Ground Valuation.

Answer 11

1. Searched for comparable evidence - internal / external databases , calling agents
2. Verified information
3. Assembled my comps into a schedule
4. Adjusted them to look at most important, using hierarchy of evidence
5. Analysed comps to form an opinion of value
6. Reported value

Question 12

Talk me through the hierarchy of evidence.

Answer 12

Category A - direct comparables
- completed near identical with full info
- completed similar with full info
- completed similar with less info
- under offer
- asking prices

Category B - general market data which can provide guidance
- indicies
- info from published sources
- supply / demand data

Category C - other sources
- evidence from other asset types