GP Surgery, Crayford: What did you do?
Valuation steps
Client instructed valuation for partnership changes.
Acting as external valuer, red book purposes.
Checked competency, COI and issued TOEs to VPGA1, records kept.
DD and desk top checks
Inspect, measure
Analyse comparable evidence
Prepare report, min VPGA6
Peer review, audit and sign off
issue to client
What DD would do?
Legal: title, tenure, boundaries, restrictions
Property specific: tenants, condition, age, obtain plans, NHS reimbursement
Legislative: planning, listed,
Financial: Rates,
Environmental: EPC, sustainability, flooding, contamination, mining, radon
Risk assess in line with Surveying Safely, assess locality,
Valuation:
property owner occupied, regard given to the partnership agreement valued in existing use.
I reached opinion of MRV by Market Approach and adopting the Comparable Method, then applied the Income Approach through using the Investment Method to capitalise the notional rent income of the property.
I capitalised this at the appropriate yield into perpetuity. Deducting acquisition costs to reach MV.
What hypothetical terms did you adjust to?
Being owner occupied, property received NHS rent reimbursement and assumed will continue to do so.
PCDs state hypothetical terms as
TIR, LL resp for external repairs, insurances
3 yearly RR, OMV
15 year term
user clause premises for medical purposes with planning granted
exclusive of rates and SC
as on CMR/TIR terms, an adjustment to FRI consistent with investment evidence of 5%
What yield did you adopt?
6.25%
