A valuation assumption that differs from the facts existing at the valuation date, such as assuming planning consent is granted or a lease is surrendered; it must be clearly stated and reasonable.
Related terms
- Term and reversion
A valuation method splitting current (term) income from future (reversionary) income.
- Vacant possession value
The value of a property assuming it is sold with no tenant in occupation, giving the buyer immediate use; often differs sharply from the investment value of th…
- Valuation date
The specific date to which a valuation applies, since values change over time.
- Yield gap
The difference between property yields and the yield on risk-free assets such as government bonds, used to gauge whether property is attractively priced relati…
- All-risks yield
The single capitalisation rate that reflects all the risks and growth prospects of an asset.
- Comparable evidence hierarchy
The ranking of transactional evidence by reliability, from open-market completed transactions at the top down to asking prices and hypothetical opinions; value…
- Comparable method
Valuing a property by reference to prices achieved on similar assets, with adjustments.
- Cost approach
Valuing a property as the cost to replace it, less depreciation, plus land value.