Decision Makers Guide - DMG41044

Capital asset in the UK: land and premises

In the case of land or premises, the decision maker should obtain an expert opinion on the market value of the deemed share. The decision maker should ensure that the expert has taken into account

1) that the applicant is assumed to be a willing seller and
2) whether the other owners would be willing and able to buy the share and<<b> 3) whether the other owners would agree to the sale of the asset as a whole and
4) in a case where the other owners would not buy the share or agree to a sale of the asset as a whole, whether on the facts of the applicant's particular case the courts would order

the sale of the property or

the partition of the property and

Note (the valuer should not assume that an order will be granted. The specific facts of the case and the relevant law should be considered)

the length of time a purchaser may have to wait before obtaining possession and

the legal costs a buyer may have to pay if an application to the courts for an order for sale and / or partition was pursued ( this includes both the buyer's and the other parties' costs) and

5) the rights of occupation of the other owners and
6) whether any of the other owners are occupying the property and whether they would be willing to vacate the property and
7) any rights of occupation possessed by any occupants who are not owners e.g. tenants and
8) any incumbrances secured on the asset being valued and
9) the legal protections available to a potential purchaser and
10) any risk that the legal owners may

sell the property and keep the proceeds for themselves or<<b>
- encumber the property with secured debts or<<b>
  - lease the property and
  11) whether there are planning or other restrictions on the property.
  
  Note the valuer should consider whether and to what extent each of the above factors would encourage or discourage a potential buyer.
  
  This is not an exhaustive list of the factors relevant to the valuation of a part share. In order to reach an opinion on the value of a particular share, a valuer may have to take into account other additional factors.
  
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