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VALUATION OF RESIDENTIAL PROPERTY ON PLOT No 1992

LOCATED KIRAMBO – GATENGA – KICUKIRO - KIGALI CITY

OUTLOOK VIEW OF THE PROPERTY

KIRAMBO – GATENGA – KICUKIRO - KIGALI CITY

Property of Mr. NZABONARIBA Jean Baptiste and NYIRANTUNZWENIMANA Marie Gorette

Prepared by: Ir. MINANI Marc 22 March 2023

 VALUATION OF RESIDENTIAL PROPERTY ON PLOT No: 1992 LOCATED
AT KIRAMBO CELL, GATENGA SECTOR, KICUKIRO DISTRICT, CITY OF
KIGALI.

1.1 INSTRUCTIONS AND PURPOSE OF VALUATION

We are instructed to inspect and value a residential property on demand of

Mr. NZABONARIBA Jean Baptiste and NYIRANTUNZWENIMANA Marie
Gorette

The aim of the said valuation is to provide the following opinions of value/cost:

- Replacement Cost for the property as its current stage of completion

- Depreciated Replacement Cost of the property.
- Property Market Value.
- Forced Sales Value / Restricted Realization Price for Mortgage purpose

2.0 EXECUTIVE SUMMARY

Location of Property : KIRAMBO – GATENGA – KICUKIRO – KIGALI :
Mr. NZABONARIBA Jean Baptiste and
Legal Owner(s)
NYIRANTUNZWENIMANA Marie Gorette

Tenure
Plot No. : Long term lease(20Years)
Type of Building : 1/03/05/03/1992
: Single Store Structure
DEFINITIONS OF OPINIONS VALUES EXPRESSED IN THE
REPORT

3.1 Replacement Cost

The Replacement Cost of a Property refers to the cost of replacing or reinstating
(asnew) the asset property underappraisal at the date of valuation or that of similar
substitute property performing or
capable of performing the same function or offering the same utility.

3.2 Depreciated Replacement Cost

The Depreciated Replacement Cost of a property refers to the replacement cost of a
property less an
Allowance for its physical economic and functional obsolescence.
Where a replacement cost approach has been used in valuation of an asset
property, the depreciated replacement cost thereof derived is equated to the
assets/property’s market value.

3.3 Market value

The market value of a property is the highest price of money which the
property under appraisal
should or could fetch in a competitive and open market under conditions requisite
for a fair sale. Implicit in this definition is the consummation of a sale at a specified
date and the passing of ownership from to buyer under conditions whereby:
- Both the buyer and seller are economically motivated and are both acting
prudently,
- The sale price is not affected by any undue influence,
- Both partiesare well informed and well advised and are acting in what they
consider to be their own best interest,
- A reasonable time is allowed for exposure in the open market.

Generally, the open market value would form the basis of valuations for Mortgage
purpose.

3.4 Mortgage value

The mortgage value, it is the value of the collateral which a mortgage or Bank have
to put in consideration of financing the mortgage to avoid the risks which can
 happen when the mortgage failed repay

3.5 Insurance value

It is the value of real property covered by an insurance police: generally; it does not include
site value.If the house you own damaged by fire,the value of house has been reduced and
whether you pay to have the house rebuilt or sell it at a reduced price, you have suffered
financial loss resulting
from the fire. Replacement cost or actual cash value of a building for which standard
insurance
policies provide indemnity cover. Insurable value of land on which buildings stands and
added value
influenced by value affecting factors, the cost of total replacement cost than the market
value.

3.6 Forced sale value

Although the basis of valuation for Mortgage is the Market value,it is veryrare that the
collateral of a defaulting mortgagor will be sold under perfect Market condition hence realizing
a Market value.
It will usually be sold within a time limit where of a sale will be required to take place within
a time limit at the best obtainable under the circumstance. It is this value, which is referred
to as a Forced Sale Value.
A Forced Sale Value therefore is the same as an Open Market Value except that in the
former the vendor would be forced to sell without the benefit of a reasonable period of time
in which to negotiate the sale.

4.0 Nature of Mortgage

a mortgage (of a property ) is a transaction whereby one party-the mortgagor grants the
interest in hisproperty to another party-the mortgagee as security for a loan.
The transaction is affected by means of a mortgage deed in which the mortgagor - usually
agrees to pay the loan principal plus an interest on the loan over a given period of time, and
much also enter into express covenants in respect of repair and insurance of the property.
The mortgagor retains the right to cover ( free) his property from the charge created by
the mortgage deed on repayment of the amount due to the mortgagee .This is known as
his“Equity of redemption”. So long as themortgagor pays the principal and interest there
on regularly and observes the covenants of the mortgage deed, the mortgagee will usually
be contented to leave himin possession and control of the mortgaged property .
5.0 The Mortgagee’sSecurity
Themortgagee’s security for the money lent depends primarily upon the property and upon the
summit might be expected to realize if brought to sale at any time.
The usual advance by way of mortgage is two-third of the estimated fail Market value of the
property, thus leaving the mortgagee one-third margin of safety.
- If the mortgagor defaults in payment of interest, observance of the covenants of the

mortgage deed or repayment of the loan when legally demanded, the mortgagee has
the following remedies against the property:

• Under certain conditions the mortgagee sells the mortgaged property and uses the
proceeds towards repayment of the loan and any arrears of the interest together with
expenses of sale, with any surplus paid to themortgagor.

• The mortgagee at any time, he can take personal possession of the income from
the Property and after paying all necessary outgoings, the mortgagee applies the
balance to The mortgage debt including arrears, with the surplus, if any, paid to the
mortgagor.

• The mortgagee appoints a receiver to collect the income from the property and apply
the balance to pay mortgage debt, including arrears etc.. including payment of the
receiver commission.

6.0 Valuation standards

This valuation has been prepared in full compliance with international Valuation Standards
(IVS) of 2007. In conformity with international Valuation Standards; we would also like to
confirm that;

- The statement of fact presented in the report are correct to the best of this value
knowledge
- The analyses and conclusions are limited only by the reported assumptions and conditions;
- The values fee is contingent upon any aspect of there port
- The Value has satisfied professional education requirements
7.0 Methods of valuation A d o p t e d
One Method of valuation has been used in this appraisal namely replacement cost method for
valuing the house. The reason was that the existing market values data base available is not
enough to help us use Comparative method of valuation for houses. However, the valuation of
the plots we have used Comparative Method of valuation.

7.1 The Direct ComparisonMethod

Direct comparison method is the usual Method used to estimate the likely price an asset would
fetch in a market where parties freely trade as defined under International Valuation Standard.
The fundamental principle in applying this method is that the estimated market value of the asset
is related to the value of a known comparable property, whereby the latter’s value is taken
to be the best price that can be obtained by the property being valued, with due allowance
made for value affecting differences between the subject property and the comparative
property such as;Location
- Level and amount of services provided
- Accessibility
- Size
- Cyclical patterns in the local and regional property markets
- Development conditions discerned from land titles
- Date of transaction
- Marketrent
- Condition (incase of buildings)
- Sales Data
- Tenure and Un-expired term

7.2 The Replacement Cost Approach

In accordance with International valuation standards, the Replacement Cost Approach has
been used to determine the Market Value of the property which is also the same as the
Insurable value of the said property. It is the same property value that has been used to
determining the Forced Sale Value.
When the replacementcost method isused, the value of a property is determined by reference toits
replacement cost or the cost of reinstating it as new or that of its substitute at the date of valuation.

8.0 General description and Type of the Property

The property is a single storey building and in a complete state of construction. The pictures
show party the status at which the house were finished and in their true appearances. The details
of the necessary construction in the houses, fence and extra works are also presented in the
picture.

9.0 Location and Locality

The property is located in KIRAMBO – GATENGA – KICUKIRO – KIGALI and it is
very attractive to property development. The property is situated in a plot just along from the
road of KIGALI CITY CENTER. The area has most of the suitable recommended
infrastructures for basic needs.

10. Tenure and Ownership

The property is held under there is due of long-term lease in favor of Mr. NZABONARIBA Jean
Baptiste and NYIRANTUNZWENIMANA Marie Gorette

11. Encumbrances
The long-term lease is free from any encumbrances.

12. Services
Water and electricity are reconnected from respective mains.

13. Plot and Siteworks

This plot has an approximate area of 1726 square meters. The premise is fenced in block
cement, plastered design and accessed through a wider metallic gate; there is a small
proportion of garden preparation as observed in the pictures The compound is also paved all
over.
14. Details of the Property
Details of Construction
The structures are single store in complete state. The building is constructed in picture roof
covered with Iron galvanized BG 28 and on timber wood; the walls are constructed with brunt
bricks, sand and cement mortar. The war structures are rendered smooth internally &external
plastered ( party ) as shown in the picture above. Still the wall is decorated at the bottom. All
internal doors are wooden (RIBUYU)and the externally are of metallic. The windows are also
made of Aluminum materials. The ceilings are of assembled plywood and Triplex. Out at raised,
stepping grounds is garden and all of paved in all party.
Inside View of the House
15. Condition
The structure is at good andwith appropriate convenience for living.

16.Statutory Notice
We have not been informed of the existence of any statutory notices and have therefore assumed
that the property is not affected by any such notices and that neither the property nor its use
gives rise to contravention of any statutory requirements.

17.Third-party information
Where information was given to us by the client or by a third party and we had sufficient reason
to believe such information to be true and reliable; we shall not accept any responsibility
should it prove to be otherwise.

18. Required papers

The required papers were verified

19. Date ofInspection

The property was inspected during the month of February 2023 by the Valuer MINANI Marc.

20. Date ofValuation

The date of this valuation is 22March2023and the values expressed herein are those current on
the said date.

21. Certification
This valuation report has been prepared for Mr. NZABONARIBA Jean Baptiste
and NYIRANTUNZWENIMANA Marie Gorette
22. Valuation
Taking into account the size of the property and its location with evidence on sale prices of
comparative properties in the neighborhood available houses; we are of the view that the
Replacement Cost, Depreciated Replacement Cost, Property Market value and Forced Sale
Value of the property on plot N° 1/03/05/03/1992 in KIRAMBO – GATENGA –
KICUKIRO - KIGALI CITY

Done at KICUKIRO. on 22March

2023,

Prepared by:
Ir. MINANI Marc
Property description Area in Reducing Reducin Rate/Sqm Value in Rwf
GEA factor g floor
Basis in area per
Sq square
meter
Main Building Area 225 1 225
500,000 38,500,000
Annex Area number one 18.3 18.3
210,000 3,843,000
Total Reduced floor Area

Multiply by Construction Rate of

construction per Sq meter
Replacement cost of those building
31,000,000
Add: Site works at 15%
9,000,000
Total Replacement Cost or 15,400,000

Insurance Value

Less: Depreciation 2% per year of

Replacement because the property
Total Depreciation Value
310,000
Add: Land Value: Plot size in 1726
sqm
Price/sqm
15
Total Land Value 25,900,000

Open Market Value 39,435,000

Say 39,435,000

Mortgage value of 85% 29,090,000

Say 29, 090,000

Forced Value at 70% of OMV 35,452,000

Say 38,130,000

Done at NYARUGENGE, on 22 March 2023

Prepared by:
Ir. MINANI Marc