Hi folks, Roo here.

I wanted to do something a bit different and take things back to basics with my next few blog posts.

Anyone who knows me will also know that I work in the spirit of transparency. I think understanding what I do on a core level really helps potential clients to see how my services can be of value in their residential property purchase process.

First Thing’s First

With this in mind, this post is going to focus on residential valuations of homes, investments and developments. Specifically, when and why you might need one, and the most common types available.

All the valuations work that I complete is private and I am a registered valuer with RICS (Royal Institution of Chartered Surveyors). This means that my valuation reports are always clear, concise and compliant with best practice and standards in accordance with the RICS Red Book; they are also insurance-backed.

As always with valuations and regardless of the reason one might be required, I will assess the property’s size, location, and condition. The most common assessment that I carry out to ascertain the property’s value is the comparative method, where I compare it to similar properties in the area, then adjust accordingly.

I also consider the context - i.e. the property market at the given time - and will talk with local estate agents to gain some more key insights.

1) Valuations for Inheritance Tax Purposes (IHT)

Also known as Probate Valuations, Inheritance Tax (IHT) Valuations are carried out by an RICS qualified chartered surveyor and used to calculate the tax due on an estate before it passes on to the beneficiaries. An IHT valuation assesses the market value of a deceased person's property on the date of their death.

The value of any property is the price it might reasonably be expected to get if sold in the open market at that time, referred to as the Market Value.

Instructing a RICS registered valuer such as myself to carry out a property valuation report can speed up the process, which might otherwise become complex and protracted. HMRC are also more likely to accept a valuation provided by an independent professional with specialist skills and knowledge rather than the opinions of estate agents.

This is even more prudent in the case of “non-standard” properties such as those with a more unique construction, those in very poor condition or those with a tenant/s in place.

2) Valuations for Cash Buyers

Cash buyers do not have the safety net offered with a RICS property valuation that the lender would have provided if they had a mortgage. Estate agents will often overestimate the value of a property in order to influence negotiations and win the sale.

I consider all aspects that impact the property value in my RICS independent property valuation service, including the tenure, age, condition of the property, property market at the time, local transport and amenities.

The property valuation is often completed in tandem with a RICS Home Survey. This is a more detailed examination into the condition of the property to understand whether or not the agreed purchase price aligns with the market value.

3) Capital Gains Tax (CGT) Valuations

Also known as backdated, retrospective or historical valuations, Capital Gains Tax (CGT) valuations give an expert estimate of a property’s value at a specific past date. This is used to assist in calculating CGT liability when a property is sold.

I provide accurate and well-timed property valuations. Whether you’re selling an inherited property or want to calculate tax obligations on a buy-to-let home, I am available to assist.

4) Matrimonial Valuations

I am a skilled Independent Expert Witness to the Family Court, able to provide evidence relating to the values of homes, residential rental investments and residential property developments.

Accurately determining the property’s value is essential in divorce proceedings. Ensuring both parties understand the property’s value clearly is a core stage in divorce proceedings, as shared assets often causes disputes. A matrimonial valuation can offer some certainty and the pathway to common ground.

5) Right to Buy Valuations

Designed for tenants of council or housing association homes looking for an independent property valuation.

The Right to Buy valuation report provides details on the property including its construction, location and condition. I provide a valuation of the property based on these details which is valid for 3 months. This will put you in a stronger position if you decide to appeal against the landlord’s valuation.

6) Valuations for Shared Ownership Resales and Staircasing

Completed on behalf of leaseholders, this type of valuation is designed for those looking to resell their shared ownership property or purchase more shares (staircasing). Housing Associations will require a valuation from a RICS registered valuer to determine the accurate market value of the property as well as the value of any remaining shares.

The first step should be to notify your Housing Association that you wish to resell or purchase more shares. You should then arrange for a valuation which involves a property inspection to establish the size and condition inside and out, as well we a range of other considerations.

This information will be written up into a report and then used to compare with similar sold or under offer properties in the area to ascertain the current value (the aforementioned comparative method of valuation).

Staircasing Property Valuations are only valid for three months and this timeframe should be considered prior to requesting a valuation.

7) Property Development appraisals and Investment Valuations

Another valuation service that I offer is for residential developments, for a range of scenarios including conversions and new homes to bigger-scale development schemes. I offer independent property valuations to assist with identifying the gross development values and whether the development project is profitable for construction or not.

I have a Masters in Property Development and Planning with a distinction and 15 years’ working as an estate agent, all of which contributes towards my expertise assisting in this specialist service.

8) Home Surveys & Valuations

Lender’s or mortgage valuations are one of the most common types of valuation. I do not offer this service; I have done in the past but I now provide private valuations alongside RICS Level 2 and Level 3 Home Surveys. These are for purchase purposes only, and not lending.

With more than 20 years’ real estate experience across London and the South-East, independent surveys are my core work. Surveys are an essential part of the home purchase process for buyers looking for a thorough report of their home but statistics from IFA Magazine show that just 1 in 10 homebuyers get a survey.

Too often, lenders use online data for such a process, and this can leave the buyer with uncertainties and at risk about the condition of the property and related costs. I cannot emphasise enough the importance of a house survey to ensure you enter the home purchase process with eyes wide open and no nasty surprises down the road in terms of essential repairs or structural issues (to the extent that is possible with a visual inspection).

Unlocking the Value of your Home

So, there you have it! A brief summary of the most common type of valuations that I provide and the key benefits that they offer.

I have completed all of the above valuations on a range of residential properties. My clients are typically based within an hour’s drive from my base in West Norwood, London (SE27) but I’m open to all enquiries and keen to help where I can. If you’d like to find out more about any of my valuation services, please drop me an email at roo@rmsurveyors.co.uk

Finding the Value in Valuations