A new edition of RICS Red Book comes into being on 1st July 2017; a good time to look at the importance of using a Registered Valuer.
A valuation is the cornerstone of each and every transaction – whether property related or not – so knowing that the information received is accurate, informative and transparent is crucial.
As a Registered Valuer, the work I undertake adheres to the strict guidelines set out in RICS’ Red Book of Valuation Standards, giving clients the reassurance that each assignment follows a consistent procedure regardless of asset type. This process ensures there is a like for like comparison whether the valuation is being carried out in the UK, US or China.
RICS’ Valuers Registration Scheme was established in 2011 as a quality assurance product to underpin the quality of valuation material being produced by RICS members. Until now, the current Red Book had been in existence since 2012 with rigorous standards of valuation, incorporating the international valuation standards. In using it, valuers can both reduce risk and identify solutions.
But there isn’t a ‘one size fits all’ when it comes to valuation. The type of property being valued and the valuation methodology adopted need to be carefully assessed before any work takes place. The majority of our valuation instructions cover offices, retail premises, industrial units, commercial investments & developments and some buy to let or house in multiple occupancy properties. The way in which these are valued depends on what the valuation is required for. The list below shows some examples of the type of client we act for:
• Lenders looking to use a property as security for lending purposes
• For those looking to raise finance against an existing property or making an acquisition
• For those looking at changing their lender
• Financial reporting for accounting purposes
• Those looking to acquire a property and needing an indication of its value
• For probate
• Inheritance tax planning
Approximately 50% of the instructions Holloway Iliffe & Mitchell delivers are for lending purposes. The remaining 50% is divided between SIPP, financial reporting and private purposes. As a consequence of the 2008 crash, there is now far greater scrutiny when it comes to bank lending with large amounts of both public and private equity reliant on valuation. Without exception banks and financial institutions will only appoint a valuer who is registered with RICS VRS to carry out their work as they know the integrity of the work will be recognised by financial institutions and global regulators.
The process we undertake to deliver a valuation report is made up of several defined stages that include:
i. A physical inspection & measurement of the property
ii. Photographing both internal and external elements
iii. Researching other properties of similar size, age and location
iv. Researching the quality of evidence available to establish a valuation
v. Providing a detailed written report derived from following robust RICS standards and regulatory processes
More information on our valuation and other property services can be found at www.hi-m.co.uk.