This type of report also considers any serious defects with the property and establishes the reinstatement value for insurance purposes. (Please note that a Valuation Report is not an in-depth survey and an inspection relating to the condition of the property is not undertaken. It does however take into consideration any major defects and their effect on value. If significant defects are apparent, you would be advised to undertake a more in-depth survey and condition survey report.)
As the market value of your property has no direct relationship to the reinstatement cost of your building, many people have no idea as to an accurate rebuild sum.
Insure for the right rebuilding cost valuations and ensure that you are not under-insured to prevent penalties in the event of claims (for fire damage, an floods etc).
Property owners who purchased their home under the government Help-to-Buy: Equity Loan scheme require a Valuation when selling their house. This is because the Help to Buy loan must be redeemed in full upon sale of the property, with the amount required to be paid back being based on the market value of the property at that time – with the market valuation to be provided by the vendor’s self-appointed independent RICS Registered Valuer.
The purpose of the report is to confirm the value of the property/properties at the date of death of the deceased person so that the total value of the estate can be ascertained and any Inheritance Tax liability can be calculated. Only after this point can Probate be granted and the properties/assets be distributed as per the deceased’s wishes.
Shares in the property will be sold at the current market value, disregarding any improvements to your home that your landlord has consented to. As such, an up to date impartial Valuation is required in the form of a Property Valuation Report. As the other equity in the property is owned by a public body, it is a requirement for the Valuation Report to be produced by an independent RICS Registered Valuer. A report from an estate agent or one carried out on behalf of a mortgage lender will not be accepted.
When a married couple decide to divorce it will be necessary to ensure that a fair financial settlement is reached. As the matrimonial home is usually a significant asset, its value will need to be agreed. If any other properties are owned, these too will need to be valued to help establish a fair way forward.