Property Valuation Report

Contents

 

 

Sl No   Particulars

 

  1. Cover Letter
  2. Synopsis of Property Valuation Report
  3. Description of Property
  4. Description of Land
  5. Parameter of Boundaries
  6. Land Area Calculation
  7. Legal Aspects
  8. Methodology of Valuation
  9. Photographs of Property
  10. Drawings
  11. Location Map of Property
  12. Site Plan
  13. House Drawing
  14. Legal (Official) Documents
  15. Citizenship Certificate of Client / Owner of Property – Photocopy attached
  16. Title Deed Certificate (Lalpurja)- Photocopy attached
  17. Unified Property Tax Payment Receipt
  18. Parameter of Boundaries (Four Killa Approval Letter) – Original Attached.
  19. Trace Map – Certified copy attached.
  20. Cadastral Map (Survey Map of Area / Land prepared by Survey Department) – Certified copy attached.
  21. Rate of Land as recommended by Land Revenue Department, Government of Nepal- Photocopy attached

 

 

  1. Synopsis of Property Valuation Report
  1. General Information
Name of client (Firm) Mr. Nabal Kishor Chaudhary
Address Mainhashasarbahu- 5, Saptari
Citizenship No. 2851
Citizenship issue place & Date DAO- Saptari/ 2057-01-9
Father’s Name Mr. Rama Kant Chaudhary
Grand Father’s Name  
  1. Type of Property to be mortgaged  : Land & Building both.
  2. Owner of the property
Name Mrs. Babita Devi Chaudhary
Address Mainhashasarbahu- 5, Saptari
Citizenship No. 83
Citizenship issue place & Date DAO- Sarlahi/ 2043-3-3
Father’s Name Mr. Lalu Chaudhary Tharu
Husband’s Name Mr. Rama Kant Chaudhary
Grand Father’s In Law Name Mr. Kanak Lal Chaudhary
  1. Address of owner
Permanent Address Mainhashasarbahu- 5, Saptari
Contact Address Lahan -3, Siraha
  1. Location of Property

Kitta No.: 2052 (0-0-5) Lahan Bazar – 8 Ka, Siraha.

  1. Area of Land
SN Description Plot No. 3650
1  Land Area (Lalpurja)  0-0-5
2  land area (measurement)  0-0-5
3  Effective land area  0-0-5
4  Area for Road development  0-0-3
5  Land Area Considered for valuation  0-0-4.7

(Refer to Drawing, “Site Plan”)

  1. Parameter of Boundaries (Char Killa)

According to municipality office, plot map and our site inspection parameters of the boundaries are as follows:

East West North South
Road Road Plot # 2126 Plot # 2125
  1. Importance of Location

Plot is attached to 10′ wide earthen road from east & west. It is suitable for Residential plus commercial purpose. All the physical facilities such as electricity, telecommunication, transportation & some other physical amenities are available in this area. Hence, the value and importance of the said property is good from the valuation point of view.

  1. Approach Road

Plot is attached to 10′ wide earthen road from east & west.

Legal Aspect of Property

To the best of our knowledge and the related documents as mentioned here, no legal dispute on the property has been regarded. Ownership of Property has been verified on the basis of Title Deed Certificate (Lalpurja), interview with Client and Local People during field survey conducted on 11.10.2075.

  1. Value of Land
   Plot # 2052
1 Area of Land in kaththa 0.240
2  Government Rate per Kaththa; Rs.    1,700,000.00
3  Market Rate per Kaththa; Rs.    8,000,000.00
4  30%  of Government rate; Rs.       510,000.00
5  70% of Market rate; Rs.     5,600,000.00
6  Rate considered for valuation purpose per Kaththa; Rs.      6,110,000.00
7  Fair market Value (FMV) of Land; Rs.     1,466,400.00
8  Distress Value of Land (DV= 80% of FMV); Rs.      1,173,120.00
Valuation of Building  Plot # 2052
   Ground Floor Area; Sft                566.44
1  Total Floor Area; Sft        566.44
2   Rate / Sft (Rs)           2,200.00
3   Value of Building   (Rs)    1,246,168.00
4  Water Supply & Sanitary Works @ 5.0 % of Value of Building (Rs)           62,308.40
5  Electrification Works @ 5.00 % of Value of Building      (Rs)          62,308.40
6  Total Value of Building    (Rs)         1,370,784.80
7   Rate of Depreciation (%)                       2.00
8  Age of Building(Years)                     8.00
9   Total Depreciation (%)                      16.00
10   Amount of  Depreciation     (Rs)            219,325.57
11   Fair Market Value of Building ; FMV   (Rs)          1,151,459.23
12  Distress Value of Building @ 80% Of FMV           921,167.39
 
 Summary  
 Fair Market Value of Land        1,466,400.00
 Fair Market Value of Building         1,151,459.23
 Total Fair Market value of Property           2,617,859.23
 
 Distress Value of Land        1,173,120.00
 Distress Value of Building           921,167.39
 Total Distress value of Property           2,094,287.39

 

On the basis of the details provided by Client and field verification, the Property to be mortgaged is valued is Rs 2,617,859.23 (In Words: Nepalese Rupees two million six hundred seventeen thousand eight hundred fifty nine only).

Distress Value of the Property is estimated to be Rs 2,094,287.39 (In Words: Nepalese Rupees two million ninety four thousand two hundred eighty seven only).

  1. Limiting Condition
  2. The Opinion of Value Stated is based on the facts and assumptions identified in this report. The Valuator takes no responsibility for changes in market conditions.
  3. The Opinion of Value Stated is based on information that has been available to the Valuator at the time; the Valuation Analysis has been conducted. The Value of the Property may change substantially with time and the Valuator reserves the right to alter the Opinion of Value Stated if relevant information is available later.
  4. Remarks
  5. The Plot has come from
  6. The Plot is attached to 10’ wide earthen road from east & west.
  7. Shape of Land in Site matches in Cadastral Map.
  8. Level of Land is same as the Level of Road.
  9. There is RCC Frame structure 1 storey Building on the plot.
  10. It is situated at residential plus commercial area (Ward No.-3) of Lahan Mun, Siraha.
  11. Ownership of Land is Free Hold and has a Single Ownership. The Land is free from any tenancy rights and Guthi Ownership.
  12. Environmental Condition of the Area is normal. There are not any means of air polluting industries and other sources of environmental pollution.
  13. To the best of our knowledge, all matter of factual nature discussed in this Report are true and correct. No important factors have been intentionally overlooked or withheld.
  14. Opinion

In our opinion, the Property may be taken as mortgage for the Distress Value recommended in this Property Valuation Report. However, all the remarks made above shall be taken into consideration and all Legal Documents shall be scrutinized by Legal Expert.

The Property, Land, of Mrs. Babita Devi Chaudhary has been valued after visiting the Site and measuring it as shown by the Client for the purpose of mortgaging it in M/s Global IME Bank Ltd, Lahan Branch, Siraha. I have not done any measurement as far as my knowledge other than actually found on the Site which will harm or cause loss to the Bank.

Description of Land

  1. Future Perspectives: Possibility of Future Improvement is normal.
  2. Rules and Regulation: Set by Town Development Board has been complied.
  3. Shape of Land: Shape of Land is almost Rectangular and Shape of Land in Site matches with Shape of Land in Cadastral Map.
  4. Type of Land : Doyam
  5. Uses of Property : Residential
  6. Topography of Land : The Land is plain and facing east & west. It is far from River, Hill
  7. Level of Land Level of Land is same as the Level of Road.
  8. Site Constraints Nothing for site constraint.
  9. Availability of Transportation Facilities

All types of Surface Transportation Facilities are available.

  1. Boundary Wall Boundaries of the Land are clear.
  2. Proximity to Civic Amenities
  3. Market : within market
  4. Hospitals, Schools, College etc : within market.
  5. Electricity : Available
  6. Water Supply Line : Available

: Tube Well

  1. Telecommunication : CDMA, Cell Phone
  2. Cable Television Line : Available.
  3. Sanitary System : N/A.
  4. Environmental Aspects

Environmental Condition of the Area is normal. There are not any means of air polluting industries and other sources of environmental pollution.

Land Area Calculation

         Area measurement system: Bigha-kaththa-dhur-kanama

Plot No. Area – Lalpurja Area – Measurement Remarks
2052 0-0-5 0-0-5 (911.25SFT) No difference

Area calculation is based on following trigonometric formula:

A= Sq. rt. s(s-a)(s-b)(s-c)

Where s=a+b+c/2; a, b & c are the three sides of triangle.    (Refer to Drawing, “Site Plan”)

Legal Aspects – Land

Sn Description Plot No.: 2052
1 Land Ownership Document (Lalpurja) Available
i. Name of Owner Mrs. Babita Devi Chaudhary
ii. Location of Property Lahan Bazar – 8 Ka, Siraha
iii. Type of Ownership Free Hold
iv. Ownership of Land Single
v. Classification of Land Doyam
2 Land Registration Paper Available
i. Mode of Acquisition of Land  
ii. Date of Registration 2066/12/02
iii. Registration No as per Land Revenue Department 2057
iv. In case of Mode of Acquisition through Rajinama, whether 6 month and 35 Days has passed.:
3 Cadastral Map of Land Available
i. Whether the Plot is indicated in Map Yes
ii. Whether Approach Road is clearly indicated in Map: Yes
iii. Whether Shape of Land in Map matches with Shape of Land in Site: Yes
iv. Whether Area of Land in Site has increased / decreased with respect to Lalpurja No difference
4 Land Revenue Payment Receipt Available
i Date of Payment Receipt 2074/07/05
5 Certificate of Parameter of Boundaries Available
i Date of Certification 2075/10/4
  1. Remarks: Ownership of Land is Free Hold and has a Single Ownership. The Land is free from any tenancy rights and Guthi Ownership.

Description of Building

  1. Type of Construction : RCC Framed Structure
  2. Uses of Building : Residential
  3. Number of Storey : 1; Ground floor only.
  4. Life of Building : 50 Years if maintained properly.
  5. Year of Completion of Construction : 2067/068 BS
  6. Age of Building : 08 Years
  7. Face of Building :  East
  8. Height of Building : 12’
  9. Ceiling Height of Building : 10′-6”
  10. External Wall : First Class Brick Work in Cement Mortar
  11. Internal Wall : First Class Brick Work in Cement Mortar
  12. Flooring Works
  13. PCC with Cement Plaster and Punning
  14. Cement Plaster and Punning in staircase
  15. Painting : Cement Paint Painting
  16. Staircase : Cement Concrete
  17. Doors and Windows
  18. Doors

Sal wood Frame.

  1. Windows and Ventilators

Sal wood Frame

  1. Toilet and Bath Room
  2. Indian Type Water Closet.
  3. Ceramic Tile in Wall and Floor
  4. Septic Tank and Soak Outside Building
  5. Electricity
  6. Type of Wiring : Surface / Concealed Wiring
  7. Phase : Single
  8. Installation : Light and Power Point as required for commercial.
  9. Sanitary System
  10. Septic Tank & Soak Pit outside Building
  11. Water Supply System
    1. Cold Water
  12. Source of Water Supply
  13. Bore Well with Hand Pump
  14. Government Water Supply
  15. Number of Rooms and shutters
  16. Ground Floor : 2 Bed Room
  17. Number of Kitchen
    1. Ground Floor : 0
  18. Number of Toilets
  19. Ground Floor : 1

Remarks                      : The building is constructed for Residential Purpose.

Floor Area Calculation

  1. Floor Area of Building
Ground Floor                 566.44
 Total Floor Area                566.44

 

  1. Depreciation
  2. Method of Depreciation Adopted : Straight Line Method
  3. Estimated Life of Building : Up to 50 years if maintained properly
  4. Rate of Depreciation Considered : 2 % per Year
  5. Year of Construction : 2067/68 BS
  6. Age of Building : 08 Years
  7. Total Depreciation (%) : 04.00 %
  8. Total Value of Building                         : Rs. 1,370,784.80
  9. Amount of Depreciation                         : Rs. 219,325.57
  10. Net Value of Building             : Rs 1,151,459.23

Legal Aspects: Building

  1. Approved Drawing of Building : Available
  2. Approval of Construction from Municipality Office :
  3. Construction Completion Certificate Municipality Office : Available
  4. Land and Building Revenue Payment Receipt : Available
  5. Insurance of Property : N/A
  6. Remarks

Methodology of Valuation

  1. Value of Land has been taken by Direct Comparison with Capitalized Value of Similar Land in the Locality. It has been taken on the basis of interview with Client and Local People during field survey. The main factors considered for Valuation are Prevailing Market Price of Land in this Area, Topography, Shape, Approach Road, Importance of Location, Possibilities of Future Development etc.
  2. Valuation of Building has been taken by Direct Comparison with the Floor Area Rate of Similar Construction in the Locality.
  3. Between the Area of Land as per Lalpurja and Area of Land as per Measurement, the Area of Land (Effective area of land), whichever is less has been considered. Area for road development and Land development has been subtracted from effective area.
  4. Weighted Average Calculation.

Fair Market Value of Land is based on 30.00 % of Government Rate as recommended by Land Revenue Department, Government of Nepal and 70.00 % of Prevailing Market Rate.

  1. Distress Value of Property has been taken 80.00 % of Weighted Value of Property since the plot is located at Residential area.

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