(1) The land value of a stratum is the capital sum which the fee-simple of the
stratum might be expected to realise if offered for sale on such reasonable
terms and conditions as a bona-fide seller would require assuming--
(a) that
the improvements, if any, within the stratum and made or acquired by the owner
or the owner's predecessor in title had not been made: Provided that where the
stratum is wholly or partly in an excavation it shall be assumed that the
excavation of the stratum had been made,
(b) that means of access to the
stratum may be used, and may continue to be used, as they were being used, or
could be used, on the date to which the valuation relates, and
(c) that lands
outside the stratum, including land of which the stratum forms part, are in
the state and condition existing at the date to which the valuation relates,
and, in particular, without limiting the generality of this assumption, that
where the stratum consists partly of a building, structure, or work or is
portion of a building, structure, or work, such building, structure, or work,
to the extent that it is outside the stratum, had been made.
(2)
Notwithstanding anything in subsection (1), in determining the land value of a
stratum it shall be assumed that--
(a) the stratum may be used, or may
continue to be used, for any purpose for which it was being used, or for which
it could be used, at the date to which the valuation relates, and
(b) such
improvements may be continued or made in the stratum as may be required in
order to enable the stratum to continue to be so used,
but nothing in this
subsection prevents regard being had, in determining that value, to any other
purpose for which the stratum may be used on the assumptions set forth in
subsection (1).
