PROPERTY VALUATIONS EXPLAINED

Our RICS (Royal Institution of Chartered Surveyors) registered valuers have vast experience in providing a range of valuations depending on individual requirements and life circumstances. Here we set out to explain some of the common types of valuation they carry out and when you might require their services.

Taxation - Probate / Inheritance Tax (IHT)

In cases where inheritance tax is applicable, it is most likely that you will be advised to obtain a formal RICS valuation for the property and its contents.

This valuation is important as it accurately determines the market value of the deceased person’s assets, ensuring that the correct amount of tax is applied. The property or properties are inspected by a qualified and experienced RICS registered valuer who will provide an objective and impartial opinion on the market value at the date of death.

It’s important to note that valuations specifically conducted for inheritance tax purposes are commonly but inaccurately labelled as “probate valuations”. Probate is the overarching legal process and the purpose of the valuation is to ascertain the precise amount of inheritance tax payable once probate has been granted.

Capital Gains Tax (CGT)

A capital gain is simply where the value of an asset that you are disposing of has increased (gained) in value since it was originally acquired. Due to the nature of property, prices over the years have generally increased and therefore, for example, the value of a standard property purchased in 1990 will likely have a higher value today. Capital Gains Tax is usually paid over a threshold and also may vary on other personal factors so it is worth getting appropriate advice or checking the Government website for up-to-date guidance. Similarly to Inheritance Tax valuations it is important to ensure that you are paying the correct amount of tax upon disposal of a property to prevent any unwanted problems from the HMRC further down the line. A RICS registered valuer will inspect and report on the value of your property to provide an accurate valuation for this purpose if needed.

Divorce / Matrimonial Settlements

Should you need an impartial and objective professional opinion on the market value of your property then our RICS registered valuers can assist you with this. Our experienced valuers will deliver an accurate market valuation of the property, ensuring that both parties understand the value clearly.

Loan Security / Bank Valuations

When you approach a bank for a loan, the lender’s priority is ensuring the safety of lending you money. This is where the need for a loan security valuation is required – its purpose is to verify whether the requested loan’s value is secure.

In this process, many banks will only accept a valuation report from a RICS Chartered Surveyor who must adhere to the strict standards outlined in the RICS Valuation Global Standards (The Red Book). The surveyor will consider factors like the property’s location, condition, and the local real estate landscape and will analyse this data alongside recent sales of comparable properties when providing their valuation.

The surveyor’s comprehensive report covers a range of aspects – from evaluating planning permissions to estimating future value and assessing the property’s environmental impact. At GTH we deliver precise valuations for residential and commercial properties, as well as land. This ensures you can make an informed decision about the safety of the loan.

Shared ownership / Help to Buy / Mortgage redemption

You will most likely be required to get a professional RICS ‘Red Book’ valuation if you are paying back your Help to Buy loan (if selling or redeeming the loan) or if you want to sell or staircase your shared ownership property. Our valuers regularly conduct specialist valuations for properties under these schemes and we will be very happy to assist you.

Expert Witness / Single Joint Expert

Occasionally expert advice is required for matters such as disputes over land or property. We have RICS professionals within our team who are able to provide their expertise across a wide range of property related matters, including residential, commercial, agricultural, lettings and more. Note that we are unable to survey properties that we sell as this would be a conflict of interest.

Insurance Purposes / Building Cost / Reinstatement

Our surveyors are trained to undertake Reinstatement Cost Assessments (re-build costs) for insurance purposes. They will visit your property to assess all aspects before using the Building Cost Information Service (BCIS) to establish an estimated cost to reinstate the property in order to ensure that your re-build value remains correct and up-to-date. These assessments are usually made based on a total loss or of such substantial damage that the entire property will require demolition and re-building. If your property is an unusual construction type or if it is Listed then you may need to obtain the services of a chartered building surveyor or quantity surveyor.

Scan for more information about our Survey & Valuation services or email survey.valuation@gth.net

Bleadon Hill

WESTON-SUPER-MARE, SOMERSET

2 5 2

Dating back over 200 years, this detached former farmhouse has been meticulously and sympathetically renovated over recent years to present the immaculate family home we find today. The property sits in a prominent and elevated position on the fringes of this sought after village. EPC Band D.

Guide Price £790,000

Burnham-on-Sea Office: 01278 782326

Pitney

LANGPORT, SOMERSET

4 4 3

Blue Slates is an idyllically situated barn conversion, set within the sought-after village of Pitney. This charming Grade II Listed attached property occupies a generous plot of 1.30 acres, and includes beautiful gardens, a detached double garage, and ample off-road parking. EPC Exempt.

Guide Price £795,000

Langport Office: 01458 250589

MINEHEAD, SOMERSET

A superb three double bedroom cottage situated in the sought after residential area on the edge of the lovely village of Porlock. Benefitting from the most wonderful far reaching views towards Bossington and Selworthy, garage and off road parking, oil fired central heating and a beautifully presented private gardens. EPC Band E.

Guide Price £475,000

Minehead Office: 01643 706666