Flashcards in The underlying principles of property law, planning and other relevant regulations or controls and their impact on property values Deck (11)
Which valuation method expressly reflects the cost of planning obligations, s106 and CIL payments?
Expressly reflected in the RESIDUAL method
What purchaser's costs are usually paid on a property purchase?
Stamp Duty Land Tax - at the prevailing rate
Agent's fees - say 1% of the purchase price + VAT
Solicitor's fees - say 0.5% of the purchase price + VAT
What are the current SDLT brackets?
(REVIEW BEFORE INTERVIEW)
What planning / legal considerations should a valuation consider?
Valuation of Ransom strips
Rights of Light
Surrenders / renewals
How should flooding be considered in a valuation?
Valuation report should include advice on risk of flooding as this may detrimentally impact on marketability and valuation of property
The Environment Agency website can be used to check flooding risk
What is a ransom strip and how should they be considered in a valuation?
This is a piece of land which controls access to another piece of land
Lands Tribunal evidence suggests value of a ransom strip could be 15%-50% of development value unlocked by inclusion of the ransom strip within proposed development
The Lands Tribunal assesses each case on its own particular facts
The key case is Stokes v Cambridge (1969) when a value of one third of the uplift in development site value was awarded to the owner of the ransom strip
How should zoning (ITZA) be considered in a valuation? (HINT: HUT)
Remember HUT when talking about zoning:
- Halving back principle
- U - A zone A rate is a Unit of comparison
- T - Zoning is a valuation Technique NOT a method
Used for comparison of retail properties to create unit of comparison for different sized buildings
Areas ‘zoned’ on ground floor and value attributed to each zone is ‘halved back’ from front to rear
Rationale - rental value of property reduces away from the street
The halving back principle with 6.1m (20ft) zones
Treatment of return frontages - usually 10% uplift but depends on comparable evidence and shoppers' footfall
What is natural zoning?
Natural zoning is when the property zones reflect physical changes in the building, such as steps
What is a party wall and how should party walls be considered in a valuation?
A wall is a ‘party wall’ if it stands astride the boundary of land belonging to two / more different land owners
There are Chartered Surveyors who specialise in party wall disputes
Party Wall Act 1996 provides a framework for resolving party wall disputes, boundary walls and excavations near neighbouring buildings
Act provides a building owner, who wishes to carry out various sorts of work to an existing party wall, with additional rights going beyond ordinary common law rights
How should rights of light be considered in a valuation and what relevant case can you think of?
Right to light of a building lasts for 20 years uninterrupted enjoyment of light without consent of a
If a right to light is infringed, an injunction is granted /damages awarded
A recent case = HKRUK 11(CHC) Ltd (a subsidiary of Highcross) v Heaney (2011)
Outcome left Highcross with a remedial works bill £1m-£2.5m and a mandatory injunction to reduce scale of extended Toronto Square scheme in Leeds where
2 new floors = added to existing office building