What is a Red Book Valuation?

Have you had to organise a valuation of your property before?  Do you know what a ‘Red Book’ valuation is? 

There are many reasons why someone might need a formal valuation.  Examples include for the likes of Inheritance Tax, Capital Gains Tax, secured lending or the transfer of property into a trust or to another individual.  A simple market appraisal cannot be used in such circumstances.

A formal valuation will need to be prepared by a qualified Chartered Surveyor in accordance with regulations set by the Royal Institution of Chartered Surveyors.  The regulations for valuations are contained within what is commonly known as the ‘Red Book’.  This identifies the scope and content of valuations and gives definitions of value, such as ‘Market Value’.

There is a set process that needs to be followed for a formal valuation.  After instructions are received and terms of business agreed the inspection of the property is undertaken.  The surveyor will make a thorough inspection, and ask various questions about the history of the property or whether there are any tenancies in place.

The valuation report will contain a comprehensive review of the subject property.  The valuer will give full descriptions of the property and check out matters including planning policy, potential contamination, scope for development or future use, the effect of any tenancies that are in place and the general market for such properties. 

Your Chester based Registered Valuers are Partner, Edward Clark, and Senior Associate, Rachel Kirk.

Chester 01244 409660