Using your knowledge of this area in relation to yields and rental values (backed up by evidence) and making relevant assumptions prepare a short report for a potential purchaser as follows:
A market valuation using whatever method you consider appropriate
An investment worth value advising as to a potential purchase offer price
In preparing the report you should consider the likely impact of both the EPC rating and legislative position on value.
Provide evidence of yields and rental values (backed up by evidence)
Decide on ‘relevant assumptions’(see Red Book) – include what happens at end of lease re refurbishment in light of L&T and Energy Act – be able to back up
Decide on methods for MV and IV (probably T&R and Shortcut or full DCF)
Consider the shape of report.
Sample Solution
