Property Valuation Survey

18/12/2017
Property valuation surveys are undertaken by surveyors who are qualified and regulated by the Royal Institution of Chartered Surveyors (RICS). There are a number of different reasons to value your property which include:

1Divorce settlement

2Transferring a share in your property

3Staircasing for Housing Association

4Sale of shared ownership property

5Leasehold valuation

6Freehold valuation

7Probate valuation

Each of the above is a valuation that a RICS surveyor can provide for yous, however the format and calculations vary depending on the reason for getting the survey. This article examines each different type of valuation survey.

Mortgage lenders have their own surveyors for mortgage valuations
If you are getting a mortgage then you are not allowed to use your own independent surveyor to provide a property valuation survey and must use the surveyor provided by the mortgage lender. You will have to pay for the survey although some mortgage products include this for free.

We have local RICS surveyors through England and offer competitive quotes with same week availability - call 0333 344 3234 to get a free quote


*RICS Surveyors – Local Knowledge – Same Week Availability
No time for forms? Call us on 0333 344 3234 (local call charges apply - Mon-Fri 8am to 6pm Sat 11am to 1pm)

RICS Surveyors, local knowledge and at competitive prices.

 

How is the property valuation survey calculated?


    1
    Divorce Settlement
The transfer of a property as part of a divorce settlement will require the married couple to get an independent valuation of the current market value of the property; unless the parties to the divorce are selling the property in which case, they will instruct a local estate agent to seek a buyer.

A chartered surveyor attends the property and assesses the current condition of the property. They will then provide their opinion of what the current market valuation of the property is and provide examples of comparable properties which have sold in the local area to support how they have arrived at their valuation.

The report is delivered on the surveyor's letter head.


    2
    Transferring a share in your property

(Read more about the complete transfer of equity process)

Transferring a share in a property is commonly known as a transfer of equity transaction. Current owners can either be adding someone to or removing someone from the title deeds. Depending on the circumstances and whether any money (usually referred to as consideration) is changing hands as part of the transaction, an independent assessment of the current market value of the property may be appropriate. If the property share is being transferred with no money changing hands then the independent valuation may not be necessary.

If there is a mortgage currently on the property, the current owners should always seek approval from their lender prior to instructing either a RICS surveyor or solicitor to carry out their services as if the mortgage lender does not agree to the ownership changes, then the transaction may not be able to take place.

A chartered surveyor attends the property and assesses the current condition of the property. They will then provide their opinion of what the current market valuation of the property is and provide examples of comparable properties which have sold in the local area to support how they have arrived at their valuation.

The report is delivered on the surveyor's letter head.


    3
    Staircasing for housing association

(Read more about the complete staircasing process)

Staircasing is the process whereby a part owner of a shared ownership property looks to purchase an increased share from the housing association currently in possession of the remaining share of a given property.

The rules governing Shared Ownership stipulate that a property valuation is carried out by an independent RICS surveyor in order to assess the current valuation of the property so that the cost of buying an increased share can be determined.  The chartered surveyor attends the property to complete an independent assessment of the current market valuation of the property.  The surveyor will need to provide examples of comparable properties which have sold in the local area to support how they have arrived at their valuation.

This chartered surveyor's valuation is used to set the cost of purchase of the increased share from the housing association. Housing associations insist on the valuation being carried out within three months of completion of the staircasing process. Many surveyors offer a single free desktop rewriting service in the event that the legal work takes longer than this restrictive time frame.

The RICS property valuation does not replace the mortgage valuation which will be required by a lender if a mortgage is being used to fund the transaction.


    4
    Sale of shared ownership property

(Read more about the shared ownership process)

When selling a Shared Ownership property, the terms of the lease stipulate that the vendor must get an independent RICS survey to provide a market valuation. This determines the amount of money which will be paid to the vendor as part of their sale.

The chartered surveyor will attend the property to complete an independent assessment of the current market valuation of thee property. The surveyor will need to provide examples of comparable properties which have sold in the local area to support how they have arrived at their valuation.

A housing association will require the valuation to be no older than three months at the point of completion of the process.

The RICS property valuation is submitted to the housing association and forms part of the contract pack for sale.


    5
    Leasehold Valuation

(Read more about the lease extension process)

When looking to extend the lease of a leasehold property a premium will be payable to the freeholder which will reflect the value to the leaseholder in receiving an extension to his lease. There are two standard ways in which a lease can be extended and the lease extension valuation forms part of the formal process. It assesses the value to the property of adding an additional 90 years to the current lease with a peppercorn ground rent and provides an estimate of the premium payable.

The leaseholder provides the surveyor with a copy of current lease and the chartered surveyor then attends the property to assess its current condition. He then carries out local area research and completes a complex calculation based on all of the above information to produce an assessment of future value and premium payable.  The rules for this valuation are laid down in the 1993 Leasehold Reform Act.

The report is delivered on the surveyors letter head. This valuation is submitted by the leaseholder to their solicitor along with a copy of their lease in order for the solicitor to draft the section 42 notice which begins the formal extension process.


    6
    Freehold Valuation

(Read more about the collective enfranchisement process)

When looking to purchase the freehold of a block of flats, a chartered surveyor will need to carry out an assessment of value which will form part of the statutory notice to be submitted by the solicitor.

The chartered surveyor will need to be provided with a copy of each individual lease for the flats, an estimate of value per property  and he will need to be assured of access to each flat as part of his inspection.  If the block is large, the inspection may take place over a number of days.

Once the surveyor has carried out his site visit he will need to complete a complex calculation based on the lease information, local knowledge and property condition to determine the freehold value to be submitted as part of the section 13 notice by the leaseholders to the freeholder.

The report is delivered on the surveyors letter head. On receipt of the report the client will need to forward the valuation to the acting solicitor for the collective enfranchisement.


    7
    Probate Valuation

(Read more about the probate process)

A probate valuation will form part of the probate process and will need to be carried out by a chartered surveyor. The valuation will include a site visit and the surveyor then provides their opinion of what the market valuation was for the property on the date of death indicated on the death certificate.

The valuation will include comparable properties which sold in the local area within three months of the time of death to support how the valuation was arrived at. The report is delivered on the surveyors letter head and will need to be submitted to the courts to finalise the Grant of Probate process.

*RICS Surveyors – Local Knowledge – Same Week Availability
No time for forms? Call us on 0333 344 3234 (local call charges apply - Mon-Fri 8am to 6pm Sat 11am to 1pm)


Related News Articles

 
Probate Sale - Top tips for buyers and sellers
27/06/2017
Remortgage Process Explained
13/10/2017
Staircasing Process
29/08/2017
Transfer of Equity Process
12/06/2018
new-conveyancing-process.png

Log in to your FREE online Conveyancing Process

Complete your to-do lists, save your progress, watch our videos and follow our tips to lead you through from instructing your solicitor to when you finally move in. Our simple, easy to use process has already helped over 2,857 people move home in 2017 and it is FREE to use.