Valuation

The Red Book

This is the common name given to the Appraisal & Valuation Standards published by the Royal Institution of Chartered Surveyors setting out the guidelines by which all professional Chartered Surveyors must value property.
With effect from the 1st May 2002 it was greatly simplified reducing the number of bases of valuations for real estate.

Market Value

This is now the most commonly called for valuation and relates either to bricks and mortar only or for an operational entity including investment property.

Market Rent

This is the estimated annual rental value of the property as at the valuation date.

For Whom?

In order to avoid charging repeat fees unnecessarily for the same valuation it is essential for a prudent Valuer to determine at the outset who will ultimately be the recipient of the report. Often a Company Secretary or Finance Director will commission a valuation but ultimately it could be placed before a funding institution, a District Valuer, pension fund trustees or a potential purchaser.
If the final recipient is identified from the outset then the information can be presented in the most appropriate method and format.

For What Purpose?

It is important to state from the outset the purpose of the valuation to ensure that all readers are advised of the intention and any particular requirements can be addressed within the report so that it is informative.

What is to be Valued?

Establishing the exact nature of the property to be valued, the physical boundaries and the status of the tenure all have an effect on value. A full physical inspection using up to date Ordnance Survey plans is as essential as establishing whether the property is an unencumbered freehold or a short leasehold with onerous covenants.

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