1. The purpose for which the valuation is required shall be to provide an opinion of the value of the Freehold/Leasehold interest in the property as specified by the client.
2. The valuation will be undertaken in accordance with the latest version of the Royal Institution of Chartered Surveyors Valuation Standards, and for simplicity the key points are listed below.
3. It is confirmed that the valuer has no interest in the property or any other conflict that will prevent the valuation being undertaken.
4. Unless otherwise specifically agreed in writing, the value advised by the valuer shall be in accordance with one or more of the following definitions:-
- (a) Market Value (MV). “The estimated amount for which a property should exchange on the date of valuation, between a willing buyer and a willing seller, in an arms length transaction after proper marketing wherein the parties have each acted knowledgeably, prudently and without compulsion”, or
- (b) Market Rent (MR). “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 on appropriate lease terms, in an arms length transaction after proper marketing wherein the parties have each acted knowledgeably, prudently and without compulsion”, or
- (c) Projected Market Value (PMV). “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 arms length transaction, after proper marketing wherein the parties have each acted knowledgeably, prudently and without compulsion.
5. Insurance Value. The reinstatement cost figure for permanent buildings is provided for insurance purposes and is not directly related to market value of the property. Unless the surveyor has access to particular cost information relating to the property or the locality, the reinstatement cost will be calculated by reference to the Indices and Guidance published by the Building Costs Information Service. The figure stated will only include value added tax on professional fees not on building costs and will not take into account other potential or consequential losses such as costs of alternative accommodation. The reinstatement cost should be revised annually or when any significant alterations or extensions are undertaken. Where a flat is the subject of the inspection the figure which will be given will be for the subject property only and it will be assumed that the client’s legal adviser will confirm what appropriate alternative arrangements will require to be made. N.B. An explanation of the definitions is available from the valuer’s office if requested.
6. All monetary values will be quoted in pounds sterling.
7. Certification of Property. Assumptions for type of property will be categorised as follows:-
- (a) Freehold or Leasehold.
- (b) Owner Occupied.
- (c) Held as an Investment.
- (d) Specialised Property.
- (e) Property held for Special Purposes.
- (f) Mineral bearing Land or waste management assets.
8. All valuations of property will be expressed in figures exclusive of value added tax or any other duties or taxes.
9. The report will be provided for the stated purpose and for the sole use of the named client. It will be confidential to the client and the client’s professional advisers. The valuer accepts responsibility to the client alone that the report will be prepared with the skill, care and diligence reasonably to be expected of a competent chartered surveyor, but accept no responsibility whatsoever to any parties other than the client. Any such parties rely upon the report at their own risk. Neither the whole nor any part of the report or any reference to it may be included in any published document, circular or statement nor published in any way without the valuer’s written approval of the form and context in which it may appear.
10. JPA Surveyors will rely on information provided by the client and/or the client’s legal or other professional advisers relating to tenure, tenancies and other relevant matters.
11. will not be providing a formal environmental assessment of the property and either:-
- (a) that the property is to be valued on the assumption that there is no contamination, or
- (b) that the valuation is to reflect the contents of an environmental audit, land quality statement or similar environmental report prepared by a specialist advisor, and if so the arrangements to apply in respect of any appointment of consultants to investigate and report upon contamination and provide an estimate of remedial costs.
12. JPA Surveyors will not be providing a disabled access audit of the property and therefore cannot comment on whether the property complies with the Disability Discrimination Act, equally JPA Surveyors will not be providing an asbestos audit of the property and therefore cannot comment on whether the property complies with the Control of Asbestos at Work Regulations. If either of these issues are of concern to the client, they should seek their own independent specialist advice.
13. Any advice or statement concerning the environmental condition of the property and the need for further assessment or otherwise will be an expression of judgement based on the findings and local knowledge of JPA Surveyors. There will be matters which it is reasonable for a chartered surveyor to comment upon and will not imply any expert knowledge regarding contamination and pollution issues. At the site inspection, observations will be limited to those of visible signs of contamination and those pathways which could transfer pollutants to and from the site which would be readily apparent to a chartered surveyor carrying out a normal site inspection for valuation purposes. The advice to the client whether or not to commission an environmental audit will be based upon the judgement whether a valuation prepared disregarding remediation costs might lead to a significant over valuation of the interest in the property to be valued if environmental factors were taken into account. Such a judgement will be based upon consideration of the degree of observed contamination and its impact on fitness for purpose of existing and potential uses, the potential for transmission of contamination on to or off the site, the risk of criminal or civil enforcement action, the potential existing user life of the property, the prospects of redevelopment and finally the impact of stigmatisation resulting from the identification of contamination on the value of the property. Where JPA Surveyors find any evidence of contamination this will be reported but the final judgement as to whether an environmental audit is necessary will rest with the client.
14. JPA Surveyors shall carry out such inspections and investigations as are, in their professional judgement, appropriate and possible in the particular circumstances.
15. The valuer shall have regard to apparent state of repair and condition of the property but shall be under no duty to carry out a building survey of the property nor to inspect woodwork or other parts of the structure which are covered, unexposed or inaccessible and will not undertake the testing of electrical, heating or other services. Furthermore, the valuer will be entitled to assume that an inspection of such areas would not reveal defects of significant magnitude to require him to make a material adjustment to the valuation.
16. The date of valuation will be deemed to be the date on which the inspection was made unless otherwise stated.
17. The valuer, unless otherwise expressly agreed, will rely upon information provided to him by the client or the client’s legal or other professional advisers relating to tenure, tenancies and other relevant matters.
18. In reporting, JPA Surveyors will meet the relevant requirements of the Royal Institution of Chartered Surveyors Valuation Standards and will make the following assumptions, which the firm will be under no duty to verify:-
- (a) That no harmful or hazardous material has been used in the construction of the property or has since been incorporated and the ground is not landfilled,
- (b) That good title can be shown and that the property is not subject to unusual or especially onerous restrictions, encumbrances or outgoings.
- (c) That the property and its value are unaffected by any matters which would be revealed by a local search and replies to the unusual enquiries or by any statutory notice and that neither the property nor its condition nor its use nor its intended use is or will be unlawful. For the avoidance of doubt, in the case of any property which is Listed as a Building of Architectural or Historic Importance, it will be assumed that no unauthorised works have been undertaken to the property,
- (d) That the inspection of those parts which have not been inspected will neither reveal material defects nor cause the valuer to alter the valuation materially,
- (e) That no radon gas is present at the property.
- (f) That the property and its value are unaffected by any matters which would be revealed by the local authority search and replies to usual enquiries or by any statutory notice that neither the property nor its condition nor its use nor its intended use is or will be unlawful.
- (g) It is assumed that, unless otherwise stated, roads, sewers and services outside the curtilage of the property are the responsibility of the local authority or other statutory body. It is assumed, unless otherwise stated, that all services, roads, etc. are under normal terms.
- (h) That further investigation into planning permission, building warrant, hazardous materials, onerous restrictions, etc. will not reveal anything sufficiently adverse as to materially affect the value. Any other assumptions will be clearly stated in the report.
- (i) Any other assumptions will be clearly state in the report. However the valuer shall be under no duty to verify these assumptions.
19. Where a property or part of a property is subject to tenancy we will reflect our general understanding or a tenant’s status in our valuation, we will make no enquiries about the financial status of the tenants, and rely upon you to advise us if tenants are in default of rental payments, or where there appear grounds for concern. We assume that appropriate enquiries were made when leases were originally exchanged or when consent was granted to tenants to assign or underlet, and that tenants are therefore not in breach of covenant. The valuations will not take account of any rights, obligations or liabilities whether prospective or accrued under the Defective Premises Act 1972.
20. All measurements will be carried out in accordance with the Code of Measurements Guidelines issued by the Royal Institution of Chartered Surveyors. In the event of other dimensions or areas being calculated from plans or other sources, the valuer will so state in the report.
21. The valuer will carry out such inspections and investigations as are in the valuer’s professional judgement appropriate and possible in the circumstances. These will include verbal town planning enquiries. It is an assumption that the
property and its value are unaffected by any matters which would be revealed by a local search and replies to the usual enquiries or by any statutory notice and that neither the property nor its condition, nor its use, nor its intended use is or will be unlawful. It is recommended that verification is obtained from the borrower’s solicitors that:-
- (a) the position is correctly stated in the report
- (b) the property is not adversely affected by any other decisions made or conditions prescribed by local authorities.
- (c) that there are no outstanding statutory notices.
The valuations are prepared on the basis that the premises comply with statutory regulations including applications to fire regulations.
22. An indication will be provided for insurance purposes unless otherwise advised (which is given solely as a guide as a formal estimate for insurance purposes can only be given by a quantity surveyor or other person with sufficient current experience of replacement costs) of the current replacement cost of:
- (a) the buildings in their present form (unless otherwise stated)
- (b) buildings being constructed as proposed to be completed
each including the cost of clearance and professional fees but excluding:-
i) VAT (except on fees)
ii) Loss of rent and/or
iii) Cost of alternative accommodation for the reinstatement period.
23. Unless otherwise specified, all items normally associated with the valuation of land and buildings are included in the valuation and reinstatement costs to the extent that they existed at the date of inspection including:-
- Fixed space heating, domestic hot water system, lighting, mains services supplying these, sprinkler systems and associated equipment, water, electricity, gas and steam circuits not serving industrial or commercial processes, sub station buildings, lifts, and permanent structures including crane rails where forming an integral part of the building structure, fixed demountable partitions, suspended ceilings, carpets, drains, sewers and sewerage plants not primarily concerned with treating trade effluent, air conditioning except where part of a computer installation or primarily serving plant or machinery.
Unless otherwise specified, the following items are excluded:-
- All items of processed plant and machinery tooling and other equipment not primarily serving the building, cranes, hoists, conveyors, elevators, structures which were ancillary to or form part of an item of processed plant and machinery, sewerage plant primarily concerned with treating trade effluent, air conditioning where part of a computer installation or primarily serving plant or machinery, and water, electricity, gas and compressed air supplies and circuits serving industrial and commercial processes.
Unless otherwise specified, no allowance is made for the cost of repairing any damage caused by the removal from the premises of items of plant, machinery, fixtures and fittings.
24. The client will pay to JPA Surveyors the fee set out in the letter of Confirmation of Instructions and the amount of value added tax on the fee and in addition the client will reimburse JPA Surveyors the cost of all reasonable out-of-pocket expenses which may be incurred, and any value added tax thereon, unless there is a general fee agreement in existence between the clients.
25. If you have any dissatisfaction with our service, JPA Surveyors, Chartered Surveyors, has a complaints procedure in accordance with the requirements of the Royal Institution of Chartered Surveyors. A copy of this can be provided on request.