Post on 03-Dec-2015
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VALUATION CERTIFICATE
On the request of Prakash Sapkota of ward no 04, Dhumbarahi, Kathmandu the property
belonging to Prakash Sapkota, was inspected, measured and relevant notes were made during
the inspection visits on 25 August 2015 in order to assess its distressed value for the purpose of
banking transaction and prepare a report incorporating all the observations and details affecting
the valuation exercise. This report is based on the facts, figures and documents supplied by the
owner and our detailed assessment of the property visiting the surrounding locality and the
prevailing development tends.
The property that has been valuated is located in Dhumbarahi ward no. 04 of Kathmandu
District of Bagmati Anchal. The plot number of the property is 19. The property comprises of a
land measuring 7 Anna 1 paisa on which is a two and a half storied building which is
currently being used for Residential purposes.
A valuation report of this property has been prepared on the basis of examination of the relevant
land ownership papers, available cadastral map, construction drawings and physical verification
of the site, detailed discussions with relevant persons and on prevailing norms as well as
procedures that I have evolved through my various experiences.
It is my considered opinion that the distressed valuation of the aforementioned property is Rs.
57,27,341/- (Fifty Seven Lakhs, Twenty Seven Thousands, Three Hundred and Forty One Only).
I also hereby declare that I have no direct or indirect interest in the property that has been
valuated.
Shuvanjan Dahal
(068/BCE/147)
Valuator
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Valuation of property in the Name of Prakash Sapkota
Introduction
a) Property inspection:-
On the request of Prakash Sapkota, the property belonging to Prakash Sapkota located
in ward no. 04, Dhumbarahi, Kathmandu was inspected for valuation on 25 August 2015 as an
experienced civil engineer as property valuator. The property that was inspected consists of a
good house on a plot of 7 Anna 1 Paisa i.e. 2481.3125 sp. ft.
The inspection visit revealed the following details:-
i. Owner of property : Prakash Sapkota
ii. Location of property : Ward No. 04, Kathmandu, Kathmandu
iii. Plot number of property : 19, Ward no.04
iv. Land Area : 7 Anna 1 Paisa i.e. 2481.3125 sq. ft.
v. Building Description : Residential, Two and a half storied.
vi. Approach road details : 3m black-topped road
The approach road of 3m width to the plot is on the East direction and the property owned by
Ramesh Kuikel, Anjani Sharma and Shiva Bhakta Mathema on South, North & West direction
respectively.
b) Property description:-
The property that was inspected and has been valued comprises of rectangular
shaped, flattish property on which is a two and a half storied house.
i. Type of property : Private Property.
ii. Land details : Shape : Fairly Rectangular shaped
Topography : Flattish
iii. Services:
Water Supply : Yes
Electricity : Single phase connection from NEA
Sewerage : Yes
Telephone : Yes
iv. Immediate Environment:
The immediate environment are residential area in the west, north and south
directions and black-topped road in the east direction.
v. Site constraints:
No landfill site of solid waste nearby.
c) Property valuation:-
The property under discussion has been valuated on the basis of the following:
i. Detailed study of the ownership documents and available cadastral map.
ii. Detailed examination of the available drawings of the buildings.
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iii. Physical verification of the site by site visit and detailed measurements the land and
building.
iv. Discussions with people knowledgeable about property values.
v. Local market survey to determine ongoing commercial rates.
vi. Comparison with valuations of similar properties.
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Qualifying and Limiting conditions:
(a) The total area of the property is 7 Anna 1 Paisa i.e. 2481.3125 sq. ft. according to the
land ownership paper. The plot is adjoining with 3m black-topped approach road.
(b) Since the access road is 3m black-topped road, the value of the property is enhanced
because of good width and good condition of road.
(c) The land value has been determined using the weighted average method, in which the
governmental value has been given 10% weightage, commercial
valuation has determined by our spot valuations and market survey is given 30%
weightage and the distressed value based on our earlier studies and our fast experience
has been 60% weightage.
(d) The value of the building has been determined on the basis of prevailing unit costs
which are based on current market values.
(e) The property under discussion is a private property.
(f) It must be borne in the mind that in spite of all the methods and calculations used to
determine the land value, it can only be indicative of the prevailing price. The final scale
figure of the buyer and seller depends during the final scale negotiations. For example, if
a seller is desperate to sell, he is most likely to sell at a price lower than that he would
have obtained if he had waited for proper moment. Similarly, if a buyer is desperate to
buy or if he likes this particular property, he would most likely pay more than he would
have if he had bided his time.
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Value calculation
(a) Valuation of land:
The valuation of any land is very dependent upon a number of important factors such as
the location, environment, size and shape of the property as well as the supply and
demand economics prevailing during the time of valuation.
In terms of location, the property is located in residential area.
The immediate environment is lands of residential purposes.
As regards the size of the property, it is moderate.
As regards topography and shape the land under discussion is flattish and fairly
rectangular shaped.
Apart from the above mentioned considerations, the property under discussion must,
above all, be evaluated within the context of supply and demand economics prevailing in
the country.
However, the price of the land ultimately depends on the psychologies of the buyer and
seller.
It must also be borne in mind that in the last few months, the prices of the lands have
tended to remain fairly static. The inflationary trend in land prices seems to have levelled
off.
While all the above mentioned factors have a bearing on the value of land, the actual
value in which a particular land is ultimately brought or sold depends upon the psychologies
of the buyer and the seller.
The final scale figure is very depended on who is more desperate - the buyer or the
seller. Generally speaking, the scale figure tends to be arbitrarily on the high side. The scale
figures can be referred to as “commercial values”.
With reference to the property under discussion, the value of the land has been
determined By using the weighted average method where 10% weightage has been given to
the value fixed by the government, 30% weightage to the commercial value of the land fixed
on the basis of market survey, our spot valuations and comparable valuations and 60%
weightage has been given to the “distressed value” as determined by our past experiences. In
the case of highly desirable areas, the distressed value tends to be quite close to the
commercial value. The different values that have been considered in this valuation exercise
are as follows:
I. Government value = Rs. 7,50,000.00 per ropani
II. Commercial value = Rs. 35,00,000.00 per ropani
III. Distressed value = Rs. 42,00,000.00 per ropani
By the weighted average method, the price of the land has been taken to be
Rs. (0.1*7.5+0.3*35+0.6*42) lakhs
= Rs. 36.45 lakhs per ropani
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Description Area of land Recommend land
rate/ropani(Rs.)
Value of land(Rs.)
Plot No.72
Ward No.04
Dhumbarahi
Flattish , rectangular
Shaped land
2481.3125sq.ft.
=
0.453 ropani
Rs. 36,45,000/- Rs.16,51,185/-
b) Valuation of Building:
As it has already been mentioned a two and a half storied house.
The floor plans and site plan are (given) in appendix. The detailed description of the
building are as follows:
a. Walls: Walls are made of local bricks in cement mortar and both internal and external
wall surfaces plastered with cement mortar. The plastered surface has been painted.
b. Floor: Ground floor is solid floor type and neat cement finished and floor is RCC floor
slab.
c. Ceiling: The ceiling has been plastered and painted.
d. Doors and Windows: The doors and window frames are made of salwood. The
window shutters have also salwood frame. The openable window shutters have glazed
shutters which open separated. The windows have grills. External doors have panelled
shutters.
e. Roof: The roof is RCC.
f. Sanitary: There is a toilet and bathroom. Sanitary fillings are filled.
g. Electrical: Most of the wiring is surface wiring. The electrical fixtures are of ordinary
type.
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Valuation of the Building
SN
Age
of
the
bu
ild
ing
Are
a (
sq.
ft.)
Pre
vail
ing p
lin
th a
rea
rate
/sq
. ft
.
Valu
e in
ter
ms
of
civil
work
s
10 %
of
cw f
or
san
itary
8%
of
cw f
or
elec
tric
ity
Dep
reci
ati
on
rate
/an
nu
m
Dep
reci
ate
d r
ate
(R
s)
Pre
sen
t n
et v
alu
e of
Bu
ild
ing a
fter
ded
uct
ion
of
dep
reci
ati
on
1 10 2576.71
sq. ft.
Rs.
1500/-
Rs.
38,65,065/-
Rs.
3,86,506/-
Rs.
3,09,205/-
Rs.
48,462 /-
Rs.
4,84,620
/-
Rs.
40,76,156/-
So present net value of the building= Rs. 40,76,156/-
Synopsis of the building
Thus the value of the property belonging to Prakash Sapkota can be synopsised as follows:
1. Value of land= Rs. 16,51,185/-
2. Value of building= Rs. 40,76,156/-
Total cost= Rs. 57,27,341/-
(In words: Fifty Seven Lakhs, Twenty Seven Thousand, Three Hundred and Forty One
Only)
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APPENDIX I
INTRODUCTORY DETAILS
OF
Property of Prakash Sapkota
1 Location Ward no 4, Dhumbarahi, Kathmandu
2 Plot number 19
3 Area of plots 7 aana 1 paisa
4 Owner of property:
Owner’s name
Father’s name
Grand father’s name
Prakash Sapkota
Prakash Sapkota
Ganga Sapkota
Yog Narendra Sapkota
5 Age of owner 48
6 Current address of the owner Dhumbarahi-4, Kathmandu
7 Details of surrounding properties
North
East
South
West
Residence
Road
Residence
Residence
8 Details of access road
Type of road
Width of road
Black topped road
3m
9 Site details
Shape
Topography
Rectangular
Plain
11 Site services
Water supply
Electricity
Sewerage system
Telephone line
½ “ connected water supply
Yes
Yes
Yes
12 Site constraints (such as overhead high tension
line, noise pollution, proximity of river, etc.)
No
13 Classification of locality
High/middle/poor/mixed class
Mixed
14 Proximity to civic amenities like school,
offices, hospital, commercial areas etc.
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15 Agreement of easement: No
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16 Is the property situated in residential,
commercial, industrial mixed
Residential area
17 Name of the tenant No
18 Monthly rent No
19 Give details of water electricity telephone
charges
No
20 Has the tenant to bear the whole or part of the
cost of repairs and maintenance?
No
21 What is the amount of property tax? Who is it
to bear it?
No
22 Is the building insured No
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APPENDIX II
TECHNICAL DETAILS
OF THE BUILDING
OF
Property of Prakash Sapkota
A) General description
1 Year of completion 2059 B.S
2 Anticipated future life 50 yrs
3 Type of structure Frame
4 Current usage of structure Residential
5 Type of design Modern
6 Special architectural structures No
7 Current state of building Fairly maintained
8 Number of floors 2.5
9 Plinth area of the building 1098.48 Sq. ft
10 Total floor area of building 2576.71 Sq. ft
11 Percentage coverage of site building 44.27%
12 Other comments (if any) No
B) Structural elements:
1 Type of foundation Stepped Foundation
2 D.P.C (type and thickness) 40mm
3 Walls
a) External
b) Internal
c) partition
d) Finishing
9’’ B/W (1:4) in cement mortar
4’’ B/W (1:4) in cement mortar
4’’ B/W (1:4) in cement mortar
(1:3) cement plaster & painted with water proof
cement paint
4 Floors
a) Ground floor
b) Finishing
Solid floor (cement plaster)
Plaster on bother inner and outer surfaces
5 Roofs:
a) Type
b) Finishing
RCC slab
6 Doors
a) Frame
b) Shutters
c) Fittings
d) Finishing
Sal wood
Paneled sal wood and battened type
Medium class
Painting
7 Windows and ventilators
a) Frame
b) Shutter
Sal wood
Glazed
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c) Wire mesh shutter
d) Grills
e) Fittings
f) Finishing
In some only
MS grills
Medium class
Painting
8 Staircase Yes
9 Other comments (if any) No
C) Electrical installation detail:
a Type of wiring Concealed
b Type of fittings Ordinary
c Number of points 5
d Other comments No
D) Sanitary installations details:
1 Quality of fixtures Ordinary
2 Details of fixtures
a. No. of water closets (commode)
b. No/ of basins
c. No. of urinals
d. No. of bath tubs
e. No. of kitchen sinks
f. No. of geysers
1
1
No
No
1
No
3 Floor finish Mosaic Tiles
4 Wall finish White Tiles
5 Water supply Intermittent supply
6 Hot water system No
7 Underground tank (capacity and type) Provided (1000 litres)
8 Overhead tank
(Location, capacity and type of construction)
1 Plastic Hilltake Tank
9 Other comment if any No
E) Other features:
1 Sewage disposal system Sewerage Line
2 Road and pavements Yes
3 Compound wall Yes
4 Other landscape features No
5 Other comments if any No
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APPENDIX IV
LAND VALUE CALCULATION
1) Instances of sale of land in the locality if available date of sale price and area of land
sold:
2) Comparison of the concerned land with the sold land as stated above:
better/similar/inferior/not applicable
3) Minimum registration rate as fixed by government: NRs. 7,50,000 per ropani
4) Current market rate recommended by real estate company/ broker : NRs. 35, 00,000.00
per ropani
5) Distressed value= Rs. 42, 00,000.00 per ropani
6) Weighted average calculation:
Rs.(0.1*75+0.3*35+0.6*42) lakhs
Rs. 36.45 lakhs per ropani
Land value
Land rate adopted in the valuation Nrs. 36,45,000 per ropani
Net area considered for valuation 0.453 ropani (2481.3125 Sq. ft)
Goss value of the land Nrs. 16,51,185