Valuation Reports – RICS
Types of Valuation Reports
Are you planning to take out a mortgage for a new home? Do you need to pay inheritance tax on land and property you’ve just fell heir to? Are you in the throes of a divorce trying to divide assets? At some point in our lives we will all need a valuation of one form or another for different reasons, and when the time comes, it is best to seek out experts, rather than trawling through websites to find an unreliable online tool that most likely will give you an inaccurate valuation. If you are not sure when to hire chartered surveyors who can give you an accurate valuation of a property, we’ve made a short summary of the different situations when property valuation reports are needed.
What a RICS Valuer does?
Property-related issues are never straightforward, but a good property valuation report by a professional RICS Valuer can make it much easier for you to buy your dream home, sell a property for the appropriate market price, calculate inheritance tax, or to pay off your help-to-buy loan. It is also important to note that a property valuation is not a building survey, so it does not highlight defects or cost of repairs.
Types of Valuation Reports
Buying a property is a major financial commitment, so it is crucial to get an accurate valuation on the building to determine its market price. Market valuation reports briefly detail a home’s overall condition, and also describe its size and location. The property’s price is based on factors such as size, condition and defects, location, proximity to public transport, age, quality of fixtures and fittings, outside space, and parking.
Do you want to pay off your help-to-buy loan? Would you like to increase your share of ownership while reducing your rent payments? London property prices are prone to fluctuation, so you need a valuation report that details your property’s current value to ensure that your terms are fair. Equity valuations let you know how much additional equity you can purchase from your housing developer or the Housing Association.
The Right to Buy scheme allows tenants to purchase their council or housing association home at a significant discount. But would you trust the accuracy of your landlord’s valuation? If you want your home’s value independently verified, you need to obtain a RICS Right to Buy valuation. But remember, a valuation only offers a brief overview of a property’s condition, so if you need a detailed building survey, that’s a different story.
Coping with the loss of loved ones can be one of the most painful experiences of life. Dealing with their affairs just adds to the hardships. Chartered surveyors, however, can help you decrease the amount of administrative hassle by providing you with an accurate and timely valuation. A probate valuation is required to distribute the deceased’s estate to the legal beneficiaries. You may need to pay inheritance tax if the estate’s value is over £325,000. The gains from any property’s sale are subject to capital gains taxation laws, but the amount you owe should be based on the estate’s value at the time of the benefactor’s passing.
You need to pay capital gains tax when you sell or ‘dispose of’ an asset that’s increased in value. So, if you bought a house in London for £200,000 and later sold it for £500,000, you’d pay tax on the gain of £300,000. But figuring out what you owe in capital gains tax can be more complex. The amount you pay depends on your taxable income, the gain, and any entitled income tax reliefs. You may also still need to pay capital gains tax on assets which are sold at a loss if your total taxable gains for the year exceed the tax-free allowance.
ATED is an annual tax payable mainly by companies that own UK residential property valued at more than £500,000. An accurate ATED valuation report by a RICS registered surveyor can help you reduce your annual tax bill for the next five years, avoid potentially costly penalties and raise disputes to the district valuer if necessary.
Making an informed and beneficial financial decision about selling your UK property if you don’t reside in the United Kingdom, and understanding related tax requirements is not an easy task. But an accurate market valuation makes it much easier. A non-domicile tax valuation tells you – and your legal advisors and solicitors – what applies to you, how much you need to pay, and how to sell or dispose of your London home legally.
An impartial matrimonial valuation is required if the divorcees can’t decide on how to divide their assets fairly. You’ll need a valuation from a RICS registered valuer for a judge to decide how to distribute your assets in accordance with the law. A divorce settlement valuation can help you receive what’s rightfully yours and reduce your legal fees significantly in the long run.
Insurance Reinstatement Valuation
If you own a property, it is crucial that it is fully insured. In most cases, home insurance packages are based on the cost of reinstating a property on a particular date rather than its current market value. Insurance reinstatement valuations let insurance providers know what the cost of rebuilding a damaged structure is likely to be should it sustain such substantial damage.
Commercial valuation surveyors assess the value of commercial properties such as shops, offices, and warehouses. The numerous purposes of commercial valuation can include loans, taxation, insurance, or charity act. This kind of valuation report can be based on several different methods. One of the most common is the investment method.
When you need a Valuation Report
Buying or selling a property, dividing assets in a divorce procedure, dealing with inheritance affairs are all watershed moments in our lives. We need accurate information, knowledge, and foresight to make the right decisions. To commission an independent and reliable chartered surveyor to compile a valuation report in any of the different situations detailed above can help you make a better decision that leads to better outcomes.
At Harding Chartered Surveyors, RICS registered valuers operate completely independently of lenders, meaning they prioritise your best interests. Harding chartered surveyors have been valuing homes in London and Surrey for homebuyers, landlords, tenants, and investors for more than two decades with a team who has over 60 years of combined experience under their belt.
The Harding’s team consists of RICS chartered surveyors and registered valuers with expertise in Building Surveys, Valuations, Leasehold Reform, Party Wall matters, and Expert Witness.
Example Valuation Report
Click here to download an example valuation report.