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VALUATION CERTIFICATE

On the request of Prakash Sapkota of ward no 04, Dhumbarahi, Kathmandu the property

belonging to Prakash Sapkota, was inspected, measured and relevant notes were made during

the inspection visits on 25 August 2015 in order to assess its distressed value for the purpose of

banking transaction and prepare a report incorporating all the observations and details affecting

the valuation exercise. This report is based on the facts, figures and documents supplied by the

owner and our detailed assessment of the property visiting the surrounding locality and the

prevailing development tends.

The property that has been valuated is located in Dhumbarahi ward no. 04 of Kathmandu

District of Bagmati Anchal. The plot number of the property is 19. The property comprises of a

land measuring 7 Anna 1 paisa on which is a two and a half storied building which is

currently being used for Residential purposes.

A valuation report of this property has been prepared on the basis of examination of the relevant

land ownership papers, available cadastral map, construction drawings and physical verification

of the site, detailed discussions with relevant persons and on prevailing norms as well as

procedures that I have evolved through my various experiences.

It is my considered opinion that the distressed valuation of the aforementioned property is Rs.

57,27,341/- (Fifty Seven Lakhs, Twenty Seven Thousands, Three Hundred and Forty One Only).

I also hereby declare that I have no direct or indirect interest in the property that has been

valuated.

Shuvanjan Dahal

(068/BCE/147)

Valuator

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Valuation of property in the Name of Prakash Sapkota

Introduction

a) Property inspection:-

On the request of Prakash Sapkota, the property belonging to Prakash Sapkota located

in ward no. 04, Dhumbarahi, Kathmandu was inspected for valuation on 25 August 2015 as an

experienced civil engineer as property valuator. The property that was inspected consists of a

good house on a plot of 7 Anna 1 Paisa i.e. 2481.3125 sp. ft.

The inspection visit revealed the following details:-

i. Owner of property : Prakash Sapkota

ii. Location of property : Ward No. 04, Kathmandu, Kathmandu

iii. Plot number of property : 19, Ward no.04

iv. Land Area : 7 Anna 1 Paisa i.e. 2481.3125 sq. ft.

v. Building Description : Residential, Two and a half storied.

vi. Approach road details : 3m black-topped road

The approach road of 3m width to the plot is on the East direction and the property owned by

Ramesh Kuikel, Anjani Sharma and Shiva Bhakta Mathema on South, North & West direction

respectively.

b) Property description:-

The property that was inspected and has been valued comprises of rectangular

shaped, flattish property on which is a two and a half storied house.

i. Type of property : Private Property.

ii. Land details : Shape : Fairly Rectangular shaped

Topography : Flattish

iii. Services:

Water Supply : Yes

Electricity : Single phase connection from NEA

Sewerage : Yes

Telephone : Yes

iv. Immediate Environment:

The immediate environment are residential area in the west, north and south

directions and black-topped road in the east direction.

v. Site constraints:

No landfill site of solid waste nearby.

c) Property valuation:-

The property under discussion has been valuated on the basis of the following:

i. Detailed study of the ownership documents and available cadastral map.

ii. Detailed examination of the available drawings of the buildings.

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iii. Physical verification of the site by site visit and detailed measurements the land and

building.

iv. Discussions with people knowledgeable about property values.

v. Local market survey to determine ongoing commercial rates.

vi. Comparison with valuations of similar properties.

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Qualifying and Limiting conditions:

(a) The total area of the property is 7 Anna 1 Paisa i.e. 2481.3125 sq. ft. according to the

land ownership paper. The plot is adjoining with 3m black-topped approach road.

(b) Since the access road is 3m black-topped road, the value of the property is enhanced

because of good width and good condition of road.

(c) The land value has been determined using the weighted average method, in which the

governmental value has been given 10% weightage, commercial

valuation has determined by our spot valuations and market survey is given 30%

weightage and the distressed value based on our earlier studies and our fast experience

has been 60% weightage.

(d) The value of the building has been determined on the basis of prevailing unit costs

which are based on current market values.

(e) The property under discussion is a private property.

(f) It must be borne in the mind that in spite of all the methods and calculations used to

determine the land value, it can only be indicative of the prevailing price. The final scale

figure of the buyer and seller depends during the final scale negotiations. For example, if

a seller is desperate to sell, he is most likely to sell at a price lower than that he would

have obtained if he had waited for proper moment. Similarly, if a buyer is desperate to

buy or if he likes this particular property, he would most likely pay more than he would

have if he had bided his time.

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Value calculation

(a) Valuation of land:

The valuation of any land is very dependent upon a number of important factors such as

the location, environment, size and shape of the property as well as the supply and

demand economics prevailing during the time of valuation.

In terms of location, the property is located in residential area.

The immediate environment is lands of residential purposes.

As regards the size of the property, it is moderate.

As regards topography and shape the land under discussion is flattish and fairly

rectangular shaped.

Apart from the above mentioned considerations, the property under discussion must,

above all, be evaluated within the context of supply and demand economics prevailing in

the country.

However, the price of the land ultimately depends on the psychologies of the buyer and

seller.

It must also be borne in mind that in the last few months, the prices of the lands have

tended to remain fairly static. The inflationary trend in land prices seems to have levelled

off.

While all the above mentioned factors have a bearing on the value of land, the actual

value in which a particular land is ultimately brought or sold depends upon the psychologies

of the buyer and the seller.

The final scale figure is very depended on who is more desperate - the buyer or the

seller. Generally speaking, the scale figure tends to be arbitrarily on the high side. The scale

figures can be referred to as “commercial values”.

With reference to the property under discussion, the value of the land has been

determined By using the weighted average method where 10% weightage has been given to

the value fixed by the government, 30% weightage to the commercial value of the land fixed

on the basis of market survey, our spot valuations and comparable valuations and 60%

weightage has been given to the “distressed value” as determined by our past experiences. In

the case of highly desirable areas, the distressed value tends to be quite close to the

commercial value. The different values that have been considered in this valuation exercise

are as follows:

I. Government value = Rs. 7,50,000.00 per ropani

II. Commercial value = Rs. 35,00,000.00 per ropani

III. Distressed value = Rs. 42,00,000.00 per ropani

By the weighted average method, the price of the land has been taken to be

Rs. (0.1*7.5+0.3*35+0.6*42) lakhs

= Rs. 36.45 lakhs per ropani

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Description Area of land Recommend land

rate/ropani(Rs.)

Value of land(Rs.)

Plot No.72

Ward No.04

Dhumbarahi

Flattish , rectangular

Shaped land

2481.3125sq.ft.

=

0.453 ropani

Rs. 36,45,000/- Rs.16,51,185/-

b) Valuation of Building:

As it has already been mentioned a two and a half storied house.

The floor plans and site plan are (given) in appendix. The detailed description of the

building are as follows:

a. Walls: Walls are made of local bricks in cement mortar and both internal and external

wall surfaces plastered with cement mortar. The plastered surface has been painted.

b. Floor: Ground floor is solid floor type and neat cement finished and floor is RCC floor

slab.

c. Ceiling: The ceiling has been plastered and painted.

d. Doors and Windows: The doors and window frames are made of salwood. The

window shutters have also salwood frame. The openable window shutters have glazed

shutters which open separated. The windows have grills. External doors have panelled

shutters.

e. Roof: The roof is RCC.

f. Sanitary: There is a toilet and bathroom. Sanitary fillings are filled.

g. Electrical: Most of the wiring is surface wiring. The electrical fixtures are of ordinary

type.

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Valuation of the Building

SN

Age

of

the

bu

ild

ing

Are

a (

sq.

ft.)

Pre

vail

ing p

lin

th a

rea

rate

/sq

. ft

.

Valu

e in

ter

ms

of

civil

work

s

10 %

of

cw f

or

san

itary

8%

of

cw f

or

elec

tric

ity

Dep

reci

ati

on

rate

/an

nu

m

Dep

reci

ate

d r

ate

(R

s)

Pre

sen

t n

et v

alu

e of

Bu

ild

ing a

fter

ded

uct

ion

of

dep

reci

ati

on

1 10 2576.71

sq. ft.

Rs.

1500/-

Rs.

38,65,065/-

Rs.

3,86,506/-

Rs.

3,09,205/-

Rs.

48,462 /-

Rs.

4,84,620

/-

Rs.

40,76,156/-

So present net value of the building= Rs. 40,76,156/-

Synopsis of the building

Thus the value of the property belonging to Prakash Sapkota can be synopsised as follows:

1. Value of land= Rs. 16,51,185/-

2. Value of building= Rs. 40,76,156/-

Total cost= Rs. 57,27,341/-

(In words: Fifty Seven Lakhs, Twenty Seven Thousand, Three Hundred and Forty One

Only)

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APPENDIX I

INTRODUCTORY DETAILS

OF

Property of Prakash Sapkota

1 Location Ward no 4, Dhumbarahi, Kathmandu

2 Plot number 19

3 Area of plots 7 aana 1 paisa

4 Owner of property:

Owner’s name

Father’s name

Grand father’s name

Prakash Sapkota

Prakash Sapkota

Ganga Sapkota

Yog Narendra Sapkota

5 Age of owner 48

6 Current address of the owner Dhumbarahi-4, Kathmandu

7 Details of surrounding properties

North

East

South

West

Residence

Road

Residence

Residence

8 Details of access road

Type of road

Width of road

Black topped road

3m

9 Site details

Shape

Topography

Rectangular

Plain

11 Site services

Water supply

Electricity

Sewerage system

Telephone line

½ “ connected water supply

Yes

Yes

Yes

12 Site constraints (such as overhead high tension

line, noise pollution, proximity of river, etc.)

No

13 Classification of locality

High/middle/poor/mixed class

Mixed

14 Proximity to civic amenities like school,

offices, hospital, commercial areas etc.

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15 Agreement of easement: No

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16 Is the property situated in residential,

commercial, industrial mixed

Residential area

17 Name of the tenant No

18 Monthly rent No

19 Give details of water electricity telephone

charges

No

20 Has the tenant to bear the whole or part of the

cost of repairs and maintenance?

No

21 What is the amount of property tax? Who is it

to bear it?

No

22 Is the building insured No

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APPENDIX II

TECHNICAL DETAILS

OF THE BUILDING

OF

Property of Prakash Sapkota

A) General description

1 Year of completion 2059 B.S

2 Anticipated future life 50 yrs

3 Type of structure Frame

4 Current usage of structure Residential

5 Type of design Modern

6 Special architectural structures No

7 Current state of building Fairly maintained

8 Number of floors 2.5

9 Plinth area of the building 1098.48 Sq. ft

10 Total floor area of building 2576.71 Sq. ft

11 Percentage coverage of site building 44.27%

12 Other comments (if any) No

B) Structural elements:

1 Type of foundation Stepped Foundation

2 D.P.C (type and thickness) 40mm

3 Walls

a) External

b) Internal

c) partition

d) Finishing

9’’ B/W (1:4) in cement mortar

4’’ B/W (1:4) in cement mortar

4’’ B/W (1:4) in cement mortar

(1:3) cement plaster & painted with water proof

cement paint

4 Floors

a) Ground floor

b) Finishing

Solid floor (cement plaster)

Plaster on bother inner and outer surfaces

5 Roofs:

a) Type

b) Finishing

RCC slab

6 Doors

a) Frame

b) Shutters

c) Fittings

d) Finishing

Sal wood

Paneled sal wood and battened type

Medium class

Painting

7 Windows and ventilators

a) Frame

b) Shutter

Sal wood

Glazed

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c) Wire mesh shutter

d) Grills

e) Fittings

f) Finishing

In some only

MS grills

Medium class

Painting

8 Staircase Yes

9 Other comments (if any) No

C) Electrical installation detail:

a Type of wiring Concealed

b Type of fittings Ordinary

c Number of points 5

d Other comments No

D) Sanitary installations details:

1 Quality of fixtures Ordinary

2 Details of fixtures

a. No. of water closets (commode)

b. No/ of basins

c. No. of urinals

d. No. of bath tubs

e. No. of kitchen sinks

f. No. of geysers

1

1

No

No

1

No

3 Floor finish Mosaic Tiles

4 Wall finish White Tiles

5 Water supply Intermittent supply

6 Hot water system No

7 Underground tank (capacity and type) Provided (1000 litres)

8 Overhead tank

(Location, capacity and type of construction)

1 Plastic Hilltake Tank

9 Other comment if any No

E) Other features:

1 Sewage disposal system Sewerage Line

2 Road and pavements Yes

3 Compound wall Yes

4 Other landscape features No

5 Other comments if any No

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APPENDIX III

BUILDING PLAN AND LOCATION PLAN

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APPENDIX IV

LAND VALUE CALCULATION

1) Instances of sale of land in the locality if available date of sale price and area of land

sold:

2) Comparison of the concerned land with the sold land as stated above:

better/similar/inferior/not applicable

3) Minimum registration rate as fixed by government: NRs. 7,50,000 per ropani

4) Current market rate recommended by real estate company/ broker : NRs. 35, 00,000.00

per ropani

5) Distressed value= Rs. 42, 00,000.00 per ropani

6) Weighted average calculation:

Rs.(0.1*75+0.3*35+0.6*42) lakhs

Rs. 36.45 lakhs per ropani

Land value

Land rate adopted in the valuation Nrs. 36,45,000 per ropani

Net area considered for valuation 0.453 ropani (2481.3125 Sq. ft)

Goss value of the land Nrs. 16,51,185

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APPENDIX V

LAND OWNERSHIP CERTIFICATE

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APPENDIX VI

CITIZENSHIP CERTIFICATE

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APPENDIX VIII

CADASTRAL MAP OF THE SITE