The Background
You are a Chartered Valuation Surveyor. A new instruction has come in. Your client is
high street bank, Santander and they need your professional advice. Santander is about
to lend finance to their client, the Borrower. The loan amount will be for a proportion of
the Market Value. The Market Value will be confirmed by you in your report.
The Task
Undertake a loan security valuation for the Property that is outlined on the Property
Information Sheet (this will be provided to you). You should refer to the RICS Red
Book and your notes to ensure your Report complies with the Red Book on loan security
valuations.
Present your opinion of the Market Value of the Freehold interest in the Property. In their
instruction letter, the client has indicated a number of requirements for your report:
Client Requirements:
o A short form report including the content that you have agreed with the Bank, as
outlined within the Service Agreement. This includes: 1 page Executive Summary
including photos, plans and key messages, 1 page on Due Diligence and
Statutory Enquiries; 2 pages on Rental and Investment Comparable Evidence
and relevant Market Commentary; and finally, 2 pages comprising the Valuation
Methodology and Valuation Calculations (Valuations to be produced via prop-tech
software or Microsoft Excel). It is imperative that you keep to this
requirement of short form reporting and that you do not exceed the valuation
reporting length guidelines. You will need to use your professional judgement, the
appropriate techniques and present information accurately and succinctly in your
Report in order to communicate the necessary information.
o Students will be expected to attach a References List in addition to, and at the
back of, the 6 page Valuation Report document.
o The following Valuations are required:
Market Value
Market Rent
Reinstatement Valuation
Valuation on the Special Assumption that the property will be converted to
residential development
o The following commentary is also required:
Reflection on the due diligence checks required for a Red Book valuation report,
including comments on the planning status of the property
Comments on the market supported with transactional evidence
Suitable valuations and analysis
Comments on the impacts of market changes and sensitivities including Covid-19
Commentary on the marketability and saleability of the property
Comments on the property’s suitability for loan security
3
QA2 – Assessment Brief (UG)
Important:
Students are expected to complete a comprehensive amount of work in respect
of this assignment. Students are expected to commence their coursework early
in order to apply the teaching taught in the sessions.
Students should make the most of formative feedback opportunities in:
October 2021 – Terms of Engagement exercise – why not also try that task with
the case study property in mind?
In February 2022 students are encouraged to present their valuation work
completed thus far on this assessment, in order to gain feedback from their
seminar tutor – this could be a Microsoft Word document containing all of the
snipped images of the websites checked, or material and information that the
students have relied upon for the purpose of compiling their valuation reports
(for example).
Here are some tips on short form reporting: Words should serve a
purpose; it is important that you make every word count, avoid
repetition and make the most of the space allowed within the 6 pages
limit. Ensure that the information you include is accurate, appropriately
selected and integral to making your argument. Good luck!
You can use font size 9 in your reports, but no smaller please.
The Word Count & other information
Students must consider the Grade Based Assessment Criteria appended to this
coursework brief as it contains further information on what is required and how
this coursework will be graded
The text at the start of this document under the heading Presentation
Requirements is standard rubric within these QA4 briefs/ documents. Therefore,
for specific advice on the presentation and length of the submission, please refer
to the content within this grey box.
Students are expected to produce a References List in addition to the 6 pages,
which can be attached to the back of their work. If the students have any
questions on this, they are advised to please contact the Module Leader.
Students are also reminded that while we are looking for a professional valuation
report, the coursework is still fundamentally an Academic piece of coursework
and students should use the NTU Harvard Referencing system for their
coursework and include a References List as suggested
The text in the coursework must be legible, therefore please consider this when
selecting your font size.
Students may have sight of other valuation reports and exemplars, these
exemplars may have been completed by a student or industry professional. It is
paramount that students do not simply copy and paste content from templates
and other reports into their submissions; the exemplars are intended for
guidance and support only. If students do copy and paste text from these
documents and submit this as part of their coursework, it is highly likely that
Turnitin will flag this up as high risk. Students are reminded that they need to