VAL7VAE - Introduction

Thursday 30 September 2021 – 09.30am

© University College of Estate Management 2020

 What we will cover
• Module Team
• Introduction to E-Library
• Course Structure
• Module Map
• Assessment
• Why do we refer to real estate
• Essential Building Blocks
• Term and Reversion
• The Legal Dimension
• The Real Estate Market
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 Module Leader –
Michael Whitson BSc MSc FRICS FCIArb 3

• Michael qualified as a Chartered Surveyor in 1984 and has spent most of his career in private practice.
• In 1999, set up his own Practice, Michael Whitson & Co, based in London.
• RICS APC Chair
• Former Member UCEM Academic Board
• Tutor at UCEM for fve years.

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 Module Tutors 4

• Fiona Firth BSc. Hons, MRICS, PG Cert. Fiona has over twenty years post qualification experience, much of which has been focused on
valuation, planning and development.
• Key roles:
• Land Manager for Lovell Homes (London) Ltd with responsibility for the valuation of land for purchase and development.
• Development Surveyor for Montagu Evans advising clients on the planning and development of their sites.
• Development Surveyor with English Partnerships (London) with specific responsibility for their ‘novel and contentious’ sites
• Most recently as a Senior Lecturer for Kingston University, lecturing in valuation, planning and development on their RICS accredited
Undergraduate and Postgraduate degree courses.

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 David Hunt MRICS FHEA
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David has over 12 years of commercial real estate experience mostly
Divider title in here gained in Central and Eastern Europe. As a Chartered Surveyor he has
specialised in valuation. He qualified while working with the UK’s Valuation
Office Agency before moving to DTZ’s Ukraine office. He later worked in
Romania and Poland for a total of 3 years with Cushman & Wakefield.

David has studied with UCEM gaining a Postgraduate Diploma in Property

Investment. He also has a Postgraduate Certificate in Russian from
Glasgow University, an MLitt from UHI and a MA from Oxford Brookes.

David joined UCEM in September 2015, principally as a tutor on the

valuation modules, before taking on the role of Module Leader in February
2016. He is programme leader for the Foundation programme as well as
the undergraduate and postgraduate access programmes.
 Module Tutors (cont.)
• Alison Andrews is an Academic Delivery Manager for Real Estate at UCEM.
• After graduating with a degree in Land Economics and working industry she became a
Chartered Surveyor dealing with rating, valuation and investment.
• For the past 15 years she has been a lecturer in valuation at Edinburgh Napier University and
becoming Programme Leader for the MSc Real Estate Management and Investment course.
• Alison is an RICS Assessor for Assessment of Professional Competence (APC)

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 E-Library support

Lucy Roper, UCEM Information Governance Manager

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 Supported Online Learning: e-Library

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Steps
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 Supported Online Learning: e-Library

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 e-Library: announcement forum

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 Supported Online Learning: e-Library

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 e-Library resources

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 e-Library: MyAthens+

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 e-Library: MyAthens+

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 e-Library: MyAthens+

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 Supported Online Learning: e-Library
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 Supported Online Learning: e-Library

Remember:

Librarian
is a powerful search engine
with a he rt !

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 Supported Online Learning: e-Library

Remember:
UCEM’s Library &
Information Specialist is Lucy Roper,
Information Governance Manager,
library @ ucem.ac.uk

Further information can be found on the

VLE e-Library home page, &/or via the
UCEM website [online] and available @ Source: ILAM (2002)

www.ucem.ac.uk/e-library/
[accessed 22 September 2021]

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 Course Structure
• 15 weeks of taught classes
• 12 webinars
• Drop in sessions – on demand
• 2 written assignments
• 2 weeks – study break 20 December 2020 – 2 January 2021
• Assignment 1 preparation (week 6)
• Assignment 2 preparation (week 19)

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 Module Map

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 Assessment
• There are 4 learning outcomes:
 LO1 – Critically evaluate valuation methodologies and their uses.
 LO2 – Critically appraise aspects of ethics and regulation and provide reasoned solutions and advice to ethical
problems.
 LO3 – Critically analyse comparable rents, yields and capital values, to evaluate the current UK and international
property markets in a range of sectors.
 LO4 – Develop basic valuation reports and provide justified solutions to a range of real estate valuation problems.

• Assessment 1:
 Written piece of work
 Word count 2,000
 Weighting 40%
• Assessment 2:
• Written piece of work
• Word count 3,000
• Weighting 60%

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 Why do we refer to Real Estate?
• Real Estate or Real Property – refer to land and buildings.

• Intellectual Property – refers to creations of the mind, for instance; trade marks, patents,
artistic works.

• Personal Property – refers to items such as furniture, televisions, iPads etc.

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 Essential building blocks
Price – the money paid for an asset.
Value – rental or capital value placed on an asset to reflect its value in the open market at a
given time.
Worth – assessment of what an asset is worth to a particular individual or company at a given
time.
Cost – the expense of developing or refurbishing a property.
 Valuation is a model that attempts to determine price, and value is the end result
 Problems can occur for valuers, when there is a significant difference between their estimation
of value and price paid in the market

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 Term and Reversion
When a lease is
granted, two
interests in the same
piece of land arise:

Landlord’s interest
Tenant’s interest
known as the
called the term
reversion
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 The Legal Dimension
Why is the landlord’s interest known as the reversion?
• Other interests:
• Restrictive covenants – a contractual obligation in a deed
• Easement – right under common law that burdens one piece of land for the benefit of
another. For instance; rights of way, rights of support, and rights of light.
• Two principal types of lease:
• Building or ground lease – where the lessee erects buildings on a freeholder’s site. These
leases tend to be long because of the commitment in building and may be; 99 years, 125
years or even 999 years.
• Occupational lease – the lease is of both land and buildings for occupation.

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 The Real Estate Market
Characteristics of a market:
 a commodity that can be bought or sold;
 sellers – willing to sell;
 buyers – able to purchase;
 a means for bringing buyers and sellers together.
• Examples:
 Stock markets
 Produce markets
 Street markets

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 The Real Estate Market (Cont.)
The real estate market
 A commodity that can be bought or sold:
 Land and buildings are immobile
 Supply cannot be readily increased
 Each property is unique

 Sellers:
 Property offered for sale when it has ceased to serve the function for which it is held, or prices very attractive.
 Market mainly second-hand

 Buyers:
 Users who require it for occupation
 Investors who wish to let property for a return
 Developers
 Speculators

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 The Real Estate Market (Cont.)
 A means for bringing buyers and sellers together:
 The marketplace is not centralised as with say the stock market
 Characterised by property agents:
 Retained by vendors to find a buyer
 In the commercial market retained by purchasers to find a property

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 Market Value
What does it mean?
 Scarcity gives rise to value
 Supply and demand
 Value of an article indicates both its utility and scarcity

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 Market Value (cont.)
Market value

The estimated amount for which an asset or liability should

exchange on the valuation date between a willing buyer and a
willing seller in an arm’s length transaction after proper
marketing where the parties had each acted knowledgeably,
prudently and without compulsion.

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 Questions
• If you think of a question after this webinar,
• or have only been able to view a recording;
• please post them on the forum.

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