Why would I use a chartered surveyor to value my property ?

When people think about residential valuations, they often think about estate agents.  Valuations and estate agents go hand in hand with a property sale, however there are many other real-life scenarios where you may need to take advice from a chartered surveyor, like me, when you will need to know the current or past market value of your property.

There are many reasons why you might need a property to be valued aside from an imminent sale and I could help you. Here is a small number of the reasons you may need a valuation from a chartered surveyor.   

Property valuations for tax reasons

As they say, nothing in this world can be said to be certain, except death and taxes. It is likely that your property will make up a considerable percentage of your tax bill and getting your tax position in order is important. 

Property valuations are essential when it comes to Capital Gains Tax (CGT) and Inheritance Tax. 

Capital Gains Tax

You need to pay tax on the profit you earn when selling a property that isn’t your main home.  It could be a second home, a property that you let or is partially let, including commercial property.  When you come to sell that property, the gains made on it are taxed. 

I can help you prepare for that tax bill by valuing your property ahead of time.  This knowledge will allow you to plan for the future with your financial adviser or accountant. You may decide not to sell the property.

Inheritance Tax

You may need to employ a chartered surveyor in difficult times when dealing with a property as part of a deceased person’s estate.  The valuation of a property in these circumstances is to assist with the probate process, the total value of the estate and any inheritance tax that may be due.  It is required in order to complete a HMRC Inheritance Tax form. The valuation is used to calculate the inheritance tax liability and is required by legal advisers when reaching the settlement of taxation.

I always treat these situations sensitively as I know that in valuing a property, I’m valuing someone’s home.  But it is so important to get an accurate figure so that the executor can see the estate as a whole and decide the steps that need to be taken.  It can also help the family too – the property may have been left to a family member and property value could contribute to a family decision. I will provide you with a detailed report to send to your Accountant or HMRC.

Divorce

Property valuations are useful when looking at an estate and I can be called in to contribute to divorce settlements. When a couple are splitting their assets, it’s essential that the value of those assets is taken into account.  The biggest asset is often the couple’s home and that’s where a chartered surveyor comes in.  

There is always a risk that negotiations around the splitting of assets breakdown and the matter gets referred a court. As such, rather than getting an estimated value from an estate agent, it can be prudent to get a Redbook Valuation done from the outset. The figure I provide is objective and transparent which helps to make the process fair. Comparable evidence is there to see and can be challenged.  If necessary, I can also provide a valuation for both parties, a joint instruction which meets the requirements of the Family Procedure Rules should the matter go to court.

Leasehold Extensions and Freehold Purchases

As owners of a residential leasehold property, you should look at extending the lease when it has less than 100 years left on it (if this isn’t making sense then please read this blog here).  There is a charge associated with extending the lease which is made up of numerous factors, with the value of the property being an important one. 

The freeholder will carry out their own survey of the property and in order to ensure a fair lease extension fee, it’s prudent for you to do the same.

Similar to a leasehold extension is when a group of owners come together to buy the freehold of the property.  The value of each property would be required in order to reach the right price for the freehold. 

Both of these scenarios are extremely worthwhile.  A property with a healthy lease length or a property with a freehold over a leasehold will sell for a higher price in the long term.  In order to ensure you pay the right price for a 90 year extension or to purchase the freehold interest – you will need to instruct a surveyor who specialises in this area of valuation and will negotiate the correct premium on your behalf.

Compulsory Purchase Valuation

You may be one of the unfortunate few whose property is affected by Compulsory Purchase. Chartered Surveyor specialising in compulsory purchase will advise home and business owners who find themselves in this position. I will advise you on your entitlement to compensation including property value, statutory payments and additional compensation known as ‘disturbance’.