Market Valuation Reports
There are various situations whereby a market valuation on a residential property is necessary. Our Market Valuations are undertaken in full compliance with the current Royal Institution of Chartered Surveyors (RICS) Valuation Professional Standards, incorporating the International Valuation Standards.
All of the Market Valuations carried out by Wonnacotts are undertaken by RICS Registered Valuers.
We provide market valuation reports on Residential Property for the following requirements;
Matrimonial Market Valuations and Market Valuations for Housing Associations for either “staircasing” or onward sale, are calculated using the RICS Market Valuation definition.
Opinion of Market Value definition:
‘The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion’ in line with the RICS Appraisal and Valuation Standards.”
Market Valuations for both Inheritance Taxation liability and Capital Gains Taxation liability are calculated using the RICS Statutory Market Valuation definition.
Statutory Market Value definition;
“The price which the property might reasonably be expected to fetch if sold in the open market at that time, but the price must not be assumed to be reduced on the grounds that the whole property is to be placed in the market at one and the same time”
Capital Gains Taxation.
Changes to the taxation legislation now mean that from 5th April 2015 all property owners whose main residence is outside of the UK are liable to taxation on the capital gain obtained from the sale of residential property assets sold in the UK.
Under this legislation, liability is calculated from the 5th April 2015. The default position will be to ‘rebase’ the property to its market value at 6 April 2015 so that only the gain realised over that value (after deduction of any allowable costs incurred after then) is subject to the charge.
Should the taxpayer not wish to rebase they will have the option to ‘time apportion’ the whole gain over the period of ownership.
In effect, individual overseas owners are now being assessed for tax liability on the capital gain from April 2015. HMRC has stated that property asset valuations must be undertaken by RICS Registered Valuers and be fully compliant with RICS Valuation Standards.
TWP can provide a market valuation of the client’s residential property as at 6th April 2015 which enables the client to have a better understanding of possible tax implications from future sales of the asset.
Inheritance Taxation
A market valuation required by the executors of a will. This is used to establish the value of property in order to calculate the inheritance tax liability. The valuation is used by legal advisers when reaching the settlement of taxation (probate valuation).
Valuations by one of our RICS Registered Valuers provide the client with a report which includes the comparable evidence used in establishing the market value and complies fully with current professional regulation.
Matrimonial Valuation
A market valuation on a property or portfolio is instructed when a couple is getting divorced. The market valuation of the property is used in assessing the division of assets and can be used in court to settle disputes.
These valuations can be jointly or independently instructed by the parties involved and enable the process to continue with an accurate and independent valuation of the residential stock involved. Should the matter progress to court we are able to attend and provide the necessary information to the courts where the matter is still disputed. All our market valuations incorporate the methodology and analysis within the reports.
Market Valuation – Housing Associations (Staircasing or sale)
A market valuation of new build or existing housing stock where ownership is split between the individual and a housing association or Charitable Trust.
Staircasing; this market valuation provides an 100% valuation of the property and enables the client to purchase an additional % of the property at the current market value. This figure is used to determine the cost of the additional % purchase by both the client/housing association.
Sale; the market valuation provides the current opinion of open market value and is then used to determine the onward recommended sale price for the property.
Many housing associations require a current open market value to be undertaken by an RICS Registered Valuer to establish a suitable value which the property is marketed and sold on.
Housing Associations require the valuation to comply with charitable regulation and will incorporate the figure into the marketing of the property. Marketing will usually initially be carried out by the Housing Association for a defined period of time. Once this has lapsed the property can also be marketed through local estate agents. TWP can prepare the market valuation and incorporate any specific assumptions which the Housing Association/Charitable Trust may require to be included within the report.