Basis of Valuation

The valuation is to be prepared in accordance with the Royal Institution of Chartered Surveyors Appraisal and Valuation Manual (Red Book). The following bases are to be used:

Reinstatement Cost for Insurance Purposes
Open Market Value
Open Market Value (In Situ)
Estimated Restricted Realisation Price (Plant & Machinery) (14 days)

1. Reinstatement Cost Assessment

The reinstatement cost assessment for insurance purposes for plant, machinery and associated equipment reflects the current cost of supplying and installing new identical or equivalent equipment, equal to but not better than its condition when new, as specified in the attached inventory.

Items subject to hire purchase lease, rental or loan agreements and goods held in trust are not included in the reinstatement cost assessment figure.

2. Open Market Value (OMV-P&M) (PS4.16.1)

An opinion of the best price at which an interest in plant and machinery would have been sold unconditionally for cash consideration on the date of valuation assuming:

(a) A willing seller;

(b) That prior to the date of valuation, there had been a reasonable period (having regard to the nature of the plant and machinery and the state of the market) for the proper marketing of the interest and for the sale to be concluded;

(c) That no account is taken of any additional bid by a prospective purchaser with special interest.

(d) A sale of individual items for removal from the premises at the expense of the purchaser;

and

(e) That both parties to the transaction had acted knowledgeably, prudently and without compulsion.

4. Estimated Restricted Realisation price (plant and Machinery) (14 days) (ERRP – P&M) (PS4.19.1)

An opinion as to the amount of cash consideration before the deduction of costs of sale which the Valuer considers, on the date of the valuation can reasonably be on future completion of an unconditional sale of the interest in the subject plant and machinery, assuming;

(a) A willing seller

(b) That completion will take place on a future day specified by a client (and recorded in
the Valuers report) which does not allow a reasonable period for marketing (having regard to the nature of the plant and machinery and the state of the market), in this case being a period of 14 days;

(c) That no account is taken of any additional bid by a prospective purchaser with a special interest;

(d) A sale of individual items for removal from the premises at the expense of the purchaser; and

(e) That both parties to the transaction had acted knowledgeably, prudently and without compulsion.

NOTES ON VEHICLE VALUATIONS

We often have to value vehicles without the opportunity of examining the registration certificate, MOT certificate (where applicable), plating certificate (where applicable) and the service records. In these circumstances we assume-for valuation purposes-that the registration certificate (plus where appropriate MOT certificates etc) will all be available prior to the time of sale. We further assume that they will not show anything adverse of which we are unaware at the time of preparing our valuation. (B.g. a large number of previous owners, or mileages on MOT certificates which would indicate the recorded mileage of the vehicle which is incorrect etc.)

We also assume that a full service history will be available.

With all vehicles the service history has become far more valuable than had been the case historically, and with Executive cars service history is now a necessity—buyers of Mercedes, BMW and Jaguars etc. Typically will not accept anything less than a full set of main dealer stamps, without which values plummet—a service book can be “worth thousands”.

Should any of our assumptions prove incorrect, this will have a significant negative effect on our valuation

If vehicles transpire to be grey imports and/or non—UK specification, then this will have a negative effect on the valuation contained therein. In both of these cases we accept no liability.