Valuations that we offer:
What Is A Residential Property Valuation?
In a nutshell, a property valuation gives the market value of a property that a buyer would be happy to pay, assuming they are not under pressure to purchase and are willing to pay the current market rate. RICS valuations must be carried out by a RICS surveyor and Registered Valuer. This valuation process is regulated by RICS Valuation – Global Standards, otherwise known as The Red Book, ensuring a non-biased and reliable property valuation is produced for every report. Once the report is complete the residential property valuation is usually valid for 3 months, after which, in most cases the valuation validity can be extended by a further 3 months. This can be achieved by having an additional desktop valuation within 2 weeks of the original expiry date of the valuation report.
The standard definition of market value given by the RICS is:
“The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction after proper marketing where the parties had each acted knowledgeably, prudently and without compulsion.”
Types of residential property valuation
- Help to Buy Valuation & Shared Ownership valuation
Shared ownership schemes allow you to purchase a percentage of the property, with another person or entity owning the remaining percentage. The most common scheme is the Help to Buy scheme, in which the government purchases the remaining equity in the property. There are many other shared ownership schemes which are usually offered by housing associations.
When you decide to sell your property or repay the loan you will be required to have a valuation from a RICS valuer. This informs both parties of the property’s current market value which can be used to calculate the amount that is required to be paid to the housing association or government for their share of equity in the property.
- Right to Buy Valuation
If your home is owned by the council or a housing association, you may be eligible to purchase this property through Right to Buy. If you disagree with the valuation assessment carried out by your landlord you can get your own, independent valuation. This can then be used to challenge your landlord directly regarding their valuation of the property.
- Inheritance Tax Valuation (Probate)
HMRC require a professional valuer to carry out a valuation on any estate that has a gross value of over £250,000 before you can report to them regarding inheritance tax or probate. Our valuation report can be used as acceptable evidence of a property’s value in such instances. It is also advised to obtain a professional valuation on estates with a value under this threshold to reduce the risk of the valuation being rejected by HMRC.
- Capital Gains Tax Valuation
Capital Gains Tax is a tax on the profit when you sell (or ‘dispose of’) something (an ‘asset’) that has increased in value. The tax is calculated on the gain that is made on the sale of the property rather than the amount you receive for it. This is established from a valuation report undertaken by a RICS Registered Valuer.
- Matrimonial Valuation
Valuations for matrimonial purposes allow an accurate market value to be produced to support divorce proceedings.
- Reinstatement Costs
This type of valuation provides an accurate cost for rebuilding your property in case serious damage occurs. This is designed to reassure property owners that the insurance cover in place is appropriate.
It is important to note that a Valuation is a limited report and is used to guide you regarding the value of the property only. Whilst we do visit the property, a detailed inspection is not carried out and only major visible defects that would affect value will be noted. If you require a detailed inspection of the property, then see our RICS Homebuyer Survey or RICS Condition Report pages.