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

Fly grazing is the term used for leaving grazing animals on private land without permission, more commonly relating to horses and ponies. Landowners have a duty of care towards any animal on their property and as such become responsible for the welfare of the animals until an owner is found or comes forward.

Should you find yourself in a situation where someone is fly grazing on your land, the Animals Act 1971 states that the landowner must put up abandonment notices in prominent places for no less than 14 days. As livestock owners will be aware, livestock in the UK cannot be transported, sold or sent for slaughter without a passport.

Once the 14 days have ended and you have heard nothing from the owner of the animal(s), and assuming that they have not been reported as missing to the police, you can then apply for a passport and do as you wish with the livestock. Should the landowner attempt to move the livestock and thus break their duty of care they themselves would be breaking the law.

Following an increase of fly grazers relating to horses and ponies, The Control of Horses Act 2015 was introduced. This new legislation allows these scenarios to be dealt with more quickly and effectively. Under this new Act fly grazing of horses and ponies must be reported to the Police within 24 hours of being observed, allowing owners 4 days to claim their animals. Under previous legislation, an abandoned horse could only be disposed of through sale at market or public auction. However, The Control of Horses Act 2015 extends the options for dealing with abandoned horses to include private sale, gifting and rehoming.

Fly grazing can apply in many situations. Land owners who want to lease or license their property to graziers should ensure they use the correct agreements to document the relationship, thus avoiding the risk of a similar duty of care arising in relation to animals they do not own. It is also good practice to then ensure all gates to property are secure and locked, particularly in vulnerable areas, to minimise the risk of fly grazing.

Please contact your local Fisher German office to discuss the bespoke agreements we can prepare for you based on your particular circumstances.

Chester 01244 409660

Knutsford 01565 757970

Stafford 01785 220044

Consider all angles when it comes to planning applications

If the thought of developing redundant agricultural buildings following recent changes to the planning law seems attractive, it may be wise to consider a wider strategic approach before taking action.

In a bid to boost housing supply in the countryside, in April the Government altered the Class Q permitted development legislation which permits the conversion of agricultural building into houses without the need for planning permission.

It is now feasible to create up to three larger homes with a maximum combined floorspace of 465sq m, or up to five smaller dwellings, each having a maximum floorspace of 100sq m. A mix of both is also possible, providing that no more than five houses are created; three of these may be larger homes exceeding 100sq m.

Due to some confusion over interpretation of the changes by individual councils, the Government has clarified various matters to encourage more conversions. As a result, it is necessary for the building to be capable of functioning as a dwelling, but councils cannot consider internal works. Whilst very insubstantial or ramshackle buildings are unlikely to be considered suitable, anything which is in a reasonable condition with a fair degree of enclosure is potentially acceptable and can include both older and more modern buildings.

There are a number of conditions, particularly the need to submit an application for ‘prior approval’ to the council, so that they can assess certain impacts.

In addition to residential conversions, there are class R rights to convert buildings to a ‘flexible’ commercial use, such as shops, restaurants, hotels, offices, storage and distribution depots or entertainment centres. Again, there are conditions and limitations. It may also be possible to use both class Q and R rights to create a larger mixed-use site.

Another potential opportunity comes with the change in the size of new agricultural buildings allowable through permitted development rights; for larger farms this has increased from 465sq m to 1,000sq m.

Whilst all this may sound attractive, opportunities come with pros and cons attached.

It may be important to consider succession planning as part of any scheme; for instance, a farmer with a son or daughter coming into the business may want to provide accommodation for him or her. In this instance, it may be strategic to consider applying for a house with an agricultural tie and get this resolved before developing redundant barns, to maximise development opportunity on the holding.

It is also important to remember that whether or not a proposal is acceptable depends on whether it can be described as a `conversion’ or whether it is really a rebuild. As this is something of a grey area, professional advice may be necessary to enable a clear picture of hopes of success.

For advice on the potential opportunities offered by redundant buildings, contact the professional team at Fisher German LLP, 4 Vicar’s Lane, Chester CH1 1QU, telephone 01244 409660.