INTEREST VALUED – PROPERTY PRO

This will normally be fee simple with vacant possession. The fee simple indicates the nature of the interest in the property, while the "vacant possession" reflects that the property would transfer with that occupancy status.

Even if an interest in fee simple is held, a property may be subject to a long lease that could prevent vacant possession being available until expiry. In this case a value subject to long term lease is provided, however a vacant possession basis value is also provided.

An interest less than fee simple can be held. If so, the nature of the interest should be stated and its effects explained in the Additional Comments section.

VALUATIONS

The report can include various valuations depending on the type of property and the circumstances:

• Existing Property: showing both the land value and the added value of improvements as components of Market Value. This presentation of figures is suitable for any developed property (but not strata). Further, where a significant Extension/ renovation project is involved or significant repairs are required, there is also provision for an 'As if Complete' (see below) valuation to be included immediately below the Existing Property 'Market Value'.

• As if Complete: for use with TBE/Proposed Dwellings primarily. “As if Complete” is an assessment which envisages the proposed work as if it is already complete at the date of valuation and reflecting the current market. It does not attempt to anticipate what the market level will be when in fact the proposed work is completed.

• For as if complete basis valuations, the lender should request a final inspection by the Valuer to confirm satisfactory completion and to confirm the valuation as at the original report date (this will not normally be an updated valuation unless specifically requested).

• Vacant Land: while this report variation shows the land value, it also provides for showing the added value of minor improvements to arrive at market value.

• Strata title (unit title) property: for use with residential units. This shows a single figure only as land value is not relevant to strata.

• Vacant possession basis value: where more than 6 months of along term lease remains, the valuer should provide the market valuation of the property subject to the lease. In addition a fee simple vacant possession basis 'Market Value' should be included also.

The main valuation in each instance is shown in both words and figures.

The valuations are 'point in time' assessments relevant to the date of valuation (date of inspection). Real estate markets are dynamic and subject to change. However, several of the aspects under the Market Risk Ratings heading ('Reduced Value next 2 3 years.' and 'Market Volatility') should be helpful in indicating the 'sustainability' of the assessed value level.