Asset Valuations

Valuation
Accurate valuations are vital to a healthy property market and a stable economy, forming the basis of performance analysis, financing decisions, transactional or development advice, dispute resolution and taxation.

 

RICS surveyors follow robust practice standards to deliver high quality valuations. Specialist valuers operate across a wide range of asset types, working in both the public and private sector, though the most common asset classes include commercial, residential or rural property.

 

Market Value Valuations
The basis of most valuations will be Market Value, which is defined by the Royal Institution of Chartered Surveyors as:

 

"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 and where the parties had each acted knowledgeably, prudently and without compulsion."

 

A market valuation will give you an accurate and up to date valuation of your property’s current worth. The Chartered Surveyor undertaking the Valuation will consider all aspects of the property from its size, to its current condition and will provide you with a thorough and clear report of the Surveyor’s opinion of the Value.

 

Market Valuations are often called upon when you want to re-mortgage the property or place it on the market.

 

An accurate Market Valuation is key to ensuring you are fully informed of the property’s current value when taking account recent and local comparable sales of similar properties.

 

Over the years our Surveyors have valued everything from a residential flat to a high street commercial retail unit.

 

Help to Buy Valuations

The Help to Buy scheme was introduced by the government to assist those with 5% deposits to get on the housing ladder. The Help to Buy scheme is a shared equity scheme where the Government lends property buyers up to 40% of the property price, interest-free for 5 years.

 

If you have benefitted from the Help to Buy scheme and are currently in a position to remortgage, with a view to repaying your loan, then a RICS regulated valuation will be required.

 

Alternatively, if you received a Help to Buy equity loan to purchase your property and you now want sell, you will need to repay your equity loan at the time of sale.

Whether you are re-mortgaging or selling your property, you must instruct a RICS regulated independent chartered valuation surveyor to carry out the valuation.

 

We are expert valuation surveyors and are proficient in valuation of all types of residential property. You can trust us to provide you with an accurate valuation at a low cost.

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We meet the pertinent criteria outlined by Target Services Limited (Target) to carry out Help to Buy valuations as defined below:

The Valuer must be registered with the recognized qualification of RICS.

The Valuer must be independent to an estate agent.

The report must be on headed paper, signed by the RICS surveyor and addressed to Target HCA.

The Valuer MUST provide at least 3 comparable properties and sale prices.

The comparables provided must be like for like in terms of property type, size, and age and within a 2-mile radius of the property that is being inspected.

The Valuer must not be related or known to you.

The Valuer must inspect the interior of the property and provide a full valuation report.

Valuations carried out for bank or mortgage purposes are not acceptable.

A copy of the valuation report must be supplied to Target; the inspection date must be shown on the report.

 

Probate and Inheritance Tax
We act for Executors in valuing property that forms part of a deceased person’s estate.

The dates involved in a probate valuation are usually retrospective and can go back many years. These types of valuations require excellent judgment and skill in determining an accurate figure. Once a grant of probate is given, representatives of the heirs often turn to the selling agent for advice on what would be a realistic selling price.

 

nheritance Tax is a tax payable on death. It is calculated on the value of the assets of the deceased. We can provide a valuation for Inheritance Tax purposes for each property owned by the deceased, to include a Market Value as defined in the Inheritance Tax Act 1984.I

 

It is now strongly encouraged by HMRC that a professional valuer be used in order to ensure that the valuation submitted is as accurate as possible.

 

As the valuation is such an important aspect of the probate process an experienced professional valuer should undertake it, since this would be more apt to satisfy HMRC.

 

A Valuation for Probate will be required for Inheritance Tax Purposes (IHT) for any property that is worth more than £325,000. The Chartered Surveyor will be tasked with valuing the deceased’s property at the date of death.

 

It is important to note that even if the beneficiaries do not intend to sell the property, a probate valuation will still need to be undertaken for tax purposes.

 

As part of our probate valuation service we are happy to talk you through the steps required and the forms you need to fill out to apply to for the necessary grant of representation. This gives you the legal right to deal with the deceased’s estate and enables you to determine the amount of inheritance tax that requires paying.

 

We understand that probate matters can be an incredibly stressful time, we pride ourselves in ensuring the valuation is as easy to follow and time effective as it can be.

 

All of our Surveyors who undertake probate valuations are both RICS Chartered Surveyors and RICS Registered Valuers with all of our valuations complying with the rules and guidance of the RICS Red Book.

 

Capital Gains Tax
The basis of valuations for Capital Gains Tax purposes is Market Value. Capital Gains Tax is a tax on the profit when you sell (or ‘dispose of’) something (an ‘asset’) that’s increased in value.

It’s the gain you make that’s taxed, not the amount of money you receive.

 

Following changes in the law regarding non-UK residents, the RICS recommends that these owners have a CGT valuation report commissioned as at the 5th April 2015, to avoid a retrospective valuation when selling the property at a later date.

 

Determining what you owe for Capital Gains Tax on a property is a complex process, especially in cases where the property has been owned for a long period of time. Individuals, partnerships and trusts must calculate their own tax liability according to self-assessment procedures.

 

We are able to meet tight timeframes in undertaking the valuations of property portfolios containing a substantial amount of properties. We can assist in cases when complications arise with regard to relatively short unexpired lease terms and when the property is still occupied at the time of valuation.

 

We prepare a comprehensive valuation report that will assist the Valuation Office Agency and the Inland Revenue in understanding our rationale for the valuation so they can more easily accept the valuation reported. In cases in which the Revenue disagrees with us, we are fully capable of negotiating on your behalf to arrive at the best possible outcome.

 

Matrimonial, Litigation and Expert Witness
We act, provide reports, and give evidence in Court as an Expert Witness in a variety of property disputes, including Matrimonial proceedings. 

 

When a marriage or relationship is breaks down, there are usually unresolved financial issues that include the property that was shared between the partners. If you find yourself in this situation we recommend that you hire a qualified and experienced surveyor to provide you with an independent and accurate valuation.

 

As members in good standing with RICS (Royal Institution of Chartered Surveyors) we are in a position to give you a market-value matrimonial valuation on your property that will be accurate and up to date.

 

To protect your financial interests, it is strongly recommend that you get a professional independent valuation of the property in order to determine its fair market value. If the market value assessment is inaccurate, or hasn’t been prepared to the standards recognised as impartial by the RICS, you find yourself in a disadvantageous position when you negotiate your settlement.

 

If this is an amicable break up and you have a reasonable relationship with your partner, the two of you may agree to use one valuer, which will reduce your costs. We understand that it is not always an amicable break up, but we will do everything we can in favour of your financial interests.

 

A matrimonial valuation will provide you with an accurate value of the property which you can then take forward with your separation proceedings.

 

The valuation can be undertaken on behalf of one of the parties, or alternatively both parties can jointly instruct a Chartered Surveyor to undertake a valuation of the property.

 

Our matrimonial valuations not only comply with the rules and guidance of the RICS Red Book, if required they can also be undertaken in accordance with comply with part 35 of the Civil Procedure Rules (CPR) 1998 for Expert Witness Reporting purposes.

 

We understand that separation proceedings can be a stressful and complex time. Over the years our Surveyors have prepared hundreds of matrimonial valuations, we pride ourselves in  ensuring the valuation is as straightforward and time effective as it can be.

 

Retrospective Valuation
We are able to draw together evidence from a number of databases of property transactions that go back several years and this enables us to provide backdated valuations when required.

 

A retrospective valuation is a valuation of the property at a date that predates the Surveyor’s inspection.

 

The valuation will provide you with an accurate price at the specified date, for example; you may require a valuation for the property in the 1990s.

 

Our experienced and Chartered Surveyors will undertake thorough historical research and provide you with an accurate figure as to what the property would have been worth on the specified date.

 

Retrospective Valuations are often used for Probate matters, Matrimonial matters or for Capital Gains Tax (CGT).

 

Compulsory Purchase and Compensation
Local Authorities, Statutory Contractors or other public bodies can compulsorily acquire an interest in property using powers of compulsory acquisition.

 

We act for leaseholders or freeholders, especially in blocks of flats, that have been earmarked for demolition and re-development by a Local Authority. 

 

Our valuation report will give the value of the interest in property being acquired.

 

Collective Enfranchisement Full Inspection Valuation (Buy Your Freehold)

Leaseholders residing in a building can come together in a group to buy the Freehold. However, a number of conditions must be met for Leaseholders to qualify. If Leaseholders do qualify, then it is important to know how much money each participating Leaseholder will have to pay. This is more complicated than extending a lease. The report includes a thorough valuation and comprehensive report based on what we find during our on-site inspection. A Full Inspection Valuation will offer our three different valuations: the likely settlement premium; the offer or counter-offer we anticipate your Freeholder will make; the figure we recommend to accompany an opening offer in either formal or informal negotiations.


We will give you a flat-by-flat breakdown detailing how much each participating Leaseholder should pay. All we need from you is a copy of the sample lease and a brief property inspection of the participating flats. We will accurately measure the size of each flat and determine what its market value is in its unimproved state (improvements are to be disregarded according to the legislation). Our comprehensive report will have our complete findings, which will include the Gross Internal Area and particular property features that maybe considered. We invite you to call today to schedule a free initial consultation to discuss your situation.

 

Leasehold Extension Full Inspection Valuation (Extend Your Lease)

This is a thorough valuation and comprehensive report based on our findings of a full site inspection of your property, which will include the Gross Internal Area and a description of particular property features. We will accurately measure the size of your flat and determine its market value based on its unimproved state (improvements are to be disregarded according to the legislation). All we require are ground rent details, the date of the lease and a brief property inspection.

 

The report will contain three different valuations: the likely settlement premium; the offer or counter-offer we anticipate your Freeholder will make; the figure we recommend accompany an opening offer in either formal or informal negotiations. Our recommendation is for a full inspection valuation in cases where we’re acting on behalf of Freeholders who have to respond to a Notice of Claim, for properties of higher value, and for properties with short leases. We invite you to call today to schedule a free initial consultation to discuss your situation.

 

If you own a leasehold property you will only own the property for the term of years that is specified within your lease. However, under the Commonhold and Leasehold Reform Act 2002 you do have the legal right to extend your lease.

 

This Act sets out the guidelines and requirements for a tenant (the current owner of the leasehold interest in the property) to extend their lease by paying the landlord (the owner of the freehold interest in the property) a sum of money, also known as the premium. Under this Act any tenant that extends their lease will not only add a further 90 years to the term, but they will also have their ground rent converted to a peppercorn (zero).

 

All of our Surveyors who undertake Leasehold Extension Valuations are both RICS Chartered Surveyors and RICS Registered Valuers with all of our valuations complying with the rules and guidance of the RICS Red Book.

 

You can read more about the full Leasehold Extension process on our dedicated Leasehold Extensions Explained page.

 

Shared Ownership Valuations

Housing Associations usually require shared ownership valuations performed on a regular basis to determine what the Association’s share is when the property is sold.

 

We provide RICS regulated valuations for householders, which are acceptable to most Housing Associations. We regularly deal with a number of local housing providers providing this service and more.

 

As is often the case with keyworker valuations, people involved in a shared ownership are usually on a tight budget.

 

With this in mind, we will give you an updated valuation, (which can be required if a sale drags on longer than three months) at no further cost to you.

 

Insurance Valuations

We have considerable experience in assessing valuations for insurance purposes for residential property. To be adequately insured owners must be covered for the cost of rebuilding in case of fire or other disasters that could destroy the building.

 

It is vital to have insurance valuations undertaken on a regular basis to ensure that you have adequate insurance to cover your risks and to verify that you are not overly insured.

If you do not have enough insurance, you are at risk of being financially unable to rebuild your property in the event of a disaster.

 

If you are over insured, you are most likely paying a higher premium than needed. If this is the case, our Surveyors will accurately undertake an insurance valuation specific for your property to ensure you pay the correct premium.

 

An insurance valuation is a thorough assessment of the rebuild cost of the property.

Insurance Valuations will involve a Chartered Surveyor visiting the property and measuring the property in full to then calculate the cost of rebuild.

 

Insurance Valuations take into account everything from the size to the internal finishes.

In the event of any issue to the building, the insurance value could determine the potential payout you receive from the insurer, it is for this reason that we recommend having an up to date valuation prepared every 3 years.

 

Whenever our Surveyors prepare a valuation for insurance purposes they will use the Building Cost Information Service (BCIS) which is the leading provider of construction cost and price within the UK.

 

Over the years our Surveyors have valued everything from a garden wall to a multi-storey block of flats.

 

Rent reviews

Whether advising a Landlord or a Tenant we can deal with the complexities of the law surrounding rent reviews. We have considerable expertise in dealing with rent reviews. We undertake valuations to determine the current market rent and initiate negotiations with the tenant / landlord or their representatives.

 

We undertake analysis of current open market rent taking into account the full terms of the lease together with any relevant licenses such as deeds of variations or licenses for alterations, improvements and provide advice on the appropriate timescales of recommended strategies.

 

Research is an integral part of all client services. We utilise comparable evidence, including recent and historic transaction details on both internal database and external databases that are at our disposal, with full regard to relevant case law when undertaking our valuations and negotiations.

 

We also make representations to third party Independent Experts or Arbitrators in instances where negotiated settlements cannot be reached. So, if you need to speak to an expert regarding rent reviews & much more. 

Contact us

If you have any queries or wish to make an appointment, please contact us:

 

01332 411 554

 

2nd Floor

Lisbon House

5 - 7 St Mary's Gate

Derby

Derbyshire

DE1 3JA

 

info@bakemans.co.uk

 

Or use our contact form.

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Contact us

If you have any queries or wish to make an appointment, please contact us:

 

01332 411 554

 

2nd Floor

Lisbon House

5 - 7 St Mary's Gate

Derby

Derbyshire

DE1 3JA

 

info@bakemans.co.uk

 

Or use our contact form.

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