In recent weeks, Andrew Idle Associates have been appointed to carry out a larger than ever volume and variety of commercial and residential property valuations on behalf of clients.
Commercial valuations can be for a range of purposes;
- With a view to making an offer to purchase the property
- For transfer to a self-invested pension fund
- For pension fund administration /accounts
- For corporate taxation purposes
- For inheritance tax
- With the possibility of placing on the market to sell in the near future.
Sometimes the client can be in occupation under a lease and are hoping to negotiate a purchase of the freehold from their Landlord. We are currently involved in just such a case where the Client is a restauranteur.
It is worth remembering that if, as an owner or investor, you are planning to appoint an agent to act on your behalf in the marketing of your commercial property for sale then we at Andrew Idle Associates offer a no-obligation inspection and marketing report. Such a report does not constitute a formal Market Valuation but would provide an indication of what we consider to be a sensible asking price in the current market.
Residential valuations can be for:
- Paying off Help to Buy loans, where the Government currently holds some equity in the property
- For inheritance tax
- For division of ownership between different partners.
As Registered Property Valuers it is expected of our governing professional body, the Royal Institute of Chartered Surveyors (RICS), that in conducting such valuations the Surveyor will be impartial, objective and unbiased – especially when acting as an Expert for litigation purposes. In addition, Clients can be confident that when instructing Andrew Idle Associates we will be acting independently.
All property valuations have to be substantiated by relevant comparable transactions unless the category of building is highly unusual; we go to considerable lengths to obtain good comparables which are appropriate for the Client’s requirements. We subscribe to commercial property databases in which different commercial agents record main facts of sales in which they were involved. Sometimes it is necessary to speak with the agent concerned to get behind the figures and understand the true circumstances.
Of course, sometimes Clients are seeking advice on the market rental as opposed to the value of the freehold. This may be because they are approaching a rent review; coming up to a lease expiry/renewal or because the freehold title to the property is held in a pension fund whereby a business is in occupation as a tenant and the rental requires to be assessed. In these situations, we would need to read the lease carefully and obtain background information regarding tenant’s fixtures and fittings, unusual clauses which impact on rental achievable such as restricted user, and so on.