CHALLENGE
We were instructed to provide a valuation of the freehold interest in Aylesbury Vale Crematorium and adjoining amenity lake for inheritance tax purposes. The entire property is let on a long lease to a crematorium operator.
SOLUTION
We reviewed the lease, the tenant’s covenant strength and the tenant’s trading performance as part of our valuation of the property as an investment. We reflected on the passing rent versus the market rent and market evidence of investment yields for crematoria and other operational ground rented properties.
RESULTS
A detailed RICS Red Book valuation report was provided to the client which was compliant with Section 160 of the Inheritance Tax Act (IHTA) 1984.