The valuation is an art cum science of deciding the price and value of something, which might be both tangible and intangible. This includes a set of scientific methods, experience and domain based specific algorithms, tools and techniques along with experts and professionals who execute the valuation as a project for a client.Where it is used
In case of ground rent scandal, the valuation comes into picture for each and every payment component involved. These components include the primary buying charges, ground rent which is paid annually and the charges for any possible modifications in the property. all three components are open and liable to valuation as there is no hard and fast standard algorithm to decide these prices mechanically without any human judgement and evaluation of the cost involved and incurred by the owner of the property.Who runs it
Valuation can e done by a certified professional, who in this case of ground rent scandal, can be a solicitor or a professional expert in their team, specifically assigned for the task. The expert can be a part of soliciting third party or can be a standalone or individual service provider.How it helps
The valuation as a component involved in any transaction works as a safety cover which eliminates the chances of the buyer being manipulated and exploited through lack of or asymmetry of information. This provides the client or buying side with complete awareness, well informed choices, pros and cons of a deal, future risks at stake, possible costs to be incurred and the respective circumstances which enables them. Hence the buyer knows well in advance what they are getting into and what they might have to face in future through the deal. also, this gives a good idea about the fairness and integrity of the deal and deal making freeholders or developers, helping build trust for the long run.