Thursday

The Importance Of Valuation Reports When Dealing With Property

There are numerous reasons as to why property owners may wish to carry out property Valuation Reports such as:

  • Probate (Inheritance Tax)
  • Capital Gains Tax
  • Investment
  • Part Exchange
  • Matrimonial proceedings
  • Insurance re-building calculations
  • Litigation and court proceedings
  • Personal finance reasons
  • Aspects of Valuation Reports

Having an accurate and up to date value of your property by a Chartered Surveyor can prove to be important for a variety of different reason depending on your situation. However, it is important to understand that they are not classed as a legitimate form of report on the condition of a property, despite the fact that it inspects the condition of the property for any immediate problems. This is solely due to see if there are any problems that will affect the value of the property.

Below are some of the most popular reasons as to why valuation reports are carried out:

Matrimonial Valuation

Within relationships, the majority of time the biggest asset tends to be in the form or property whether owned jointly or independently. When a separation occurs though and a couple are going through the process of a divorce, one of the biggest disputes tends to be over that of how the property will be divided and shared. This is when a matrimonial valuation report is carried out by a chartered surveyor to give an accurate report on how much the property is worth; enabling a fair and smooth division of the asset, allowing the two parties to go their separate ways with minimal disruption.

This can include the contents, possessions and any land that is owned by either party. This report is often used in the court of law to help provide an accurate and fair division of any assets between both parties.

Probate Valuations

Upon the death of a friend or family member that owns property, it is important to have an accurate valuation of any property in order to settle the inheritance taxes and enable the next rightful beneficiaries to receive their intended provision. This is achieved in the form if a Probate Valuation report and is also carried out to see if there are any outstanding debts from the deceased and whether the value of the property covers the costs required - if there are any at all. It also gives an accurate statement of how much inheritance tax is to be paid, should there be any.

The importance of a Probate Valuation is also appreciated when property is owned as a joint venture and the partner of the deceased is either given full rights to the property, or not. It also takes into account the possessions, contents and any stock value that is attached to the property.

Commercial Property Valuation Report

This type of report can be undertaken by either the owner of a current property or a potential owner that is looking into purchasing a property. It represents a current and up to date valuation of a property to help with matters such as:

  • In the preparation of company accounts and in deceased estate matters
  • Reassurance that the price that is being paid for the property is fair and reasonable
  • A commercial valuation is required by a lender if you are trying to arrange mortgage finance

For all owners, investors and lenders, this gives them all an accurate and detailed report that indicates any areas of concern within a commercial property that may have an impact on the value of the property, whether it is for lease or a sale. The report consists of both in internal inspection, looking for damp, mould or any signs of structural weaknesses as well as an exterior inspection that looks for subsidiary, signs of deterioration, cracks or any other problems.

Guest post courtesy of David Moor, providers of expert Valuation reports in Leeds.