Commercial or Residential valuation report is suitable for those who are intending to buy, retain or dispose of an interest in a property with/without a mortgage or other lending provision or not and who would like an independent confirmation of the property value.
This type of report is not a survey and only covers the valuation aspect of the property, however, the Surveyor will comment on any defects found that would significantly affect the property’s value.
This report is like, but not the same as, a mortgage valuation report and can be used for sale, purchase, insurance, probate, shared ownership, part exchange, relocation, matrimonial, taxation issues, continued investment and HS2
Basis of Value should be clear as derived from the International Valuation Standards.
The following definitions of Basis of Value will be used.
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.
Statutory definition of Market Value (capital gains tax, inheritance tax and stamp duty land tax)
Summary definition derived from legislation: ‘The price which the property might reasonably be expected to fetch if sold in the open market at that time, but that price shall not be assumed to be reduced on the grounds that the whole property is to be placed on the market at one and the same time.’ (Source: section 272 Taxation and Chargeable Gains Act 1992. Section 160 Inheritance Tax Act 1984, Section 118 Finance Act 2003
The estimated amount for which an interest in real property should be leased on the valuation date between a willing lessor and a willing lessee on appropriate lease terms in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.
Our assumptions of what are ‘appropriate lease terms’ for this property will be set out in our report.
The value of an asset to the owner or a prospective owner for individual investment or operational objectives.
The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The estimated price for the transfer of an asset or liability between identified knowledgeable and willing parties that reflects the respective interests of those parties.
Insurance Reinstatement Cost
The reinstatement cost figure for the permanent buildings is provided for insurance purposes and is not directly related to market value of the property. Unless the Surveyor has access to cost information relating to the property or the locality, the reinstatement cost will be calculated by reference to the indices and guidance published by the Building Costs Information Service (BCIS). The figure stated will only include Value Added Tax on professional fees (not on building costs) and will not consider other potential or consequential losses such as costs of alternative accommodation.
The reinstatement cost figure should be revised annually or when any significant alterations or extensions are undertaken.
Where a flat is the subject of the inspection, the figure which will be given will be for the subject property only and it will be assumed that the Client’s legal adviser will confirm what appropriate alternative arrangements will require to be made.