What are the types of valuations?

November 30, 2020

 

Red book Valuation

A red book valuation is one which involved a RICS surveyors creating a valuation report that adheres to the strict criteria that RICS has put in place. These criteria include:

  • The valuation must be undertaken by an RICS agent, please read our blog titled “Different RICS qualifications” to learn the varied types that exist.
  • The valuation is only valid for three months but can be extended if done within a two-week period after the three months.
  • The agent must choose three comparable properties to rationalise the valuation.
  • These properties must have been sold within the previous six months in relatively close proximity to the property that the valuation is being undertaken for.

 

Help to buy valuation

A help to buy valuation was created in 2013 by the government, with the intention of helping first time homebuyers get a foot on the property ladder.

First time buyers have the opportunity to borrow up to 20% of the cost of the property and up to 40% in London however, if the homebuyer wishes to increase the ownership of the property they have purchased, they are legally required to get a valuation from a RICS regulated surveyor.

This will then be compared with the original purchase price which will determine an accurate share the homebuyer will have as well as a reflection of the properties market value at that time.

 

Probate valuation

A probate valuation is a system that helps to sort the value of someone’s assets when they pass away. In order to assess the value of the assets, the executor of the will must request a probate valuation report on behalf of the inheritors. A common misconception is that the executor cannot be the same person as the inheritor or beneficiary, this is not the case, and in fact, is entirely legal.

Although not necessary, a RICS regulated surveyor is always the recommended option for an accurate and extremely professional evaluation. Upon the taking place of the probate valuation, the executor must provide certain specific information including proof they are the executor, the date of death and the name of the deceased.