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RICS RED BOOK VALUATIONS
Help to Buy valuations are requried in order to be able to sell a property or to repay the loan
Our RICS surveyors have been dealing with Target for a number of years and are fully familiar with the Help to Buy Valuation Report requirements
The Valuer must be registered with the recognised qualification of RICS
The Valuer must be independent to an estate agent
The report must be on headed paper, signed by the RICS surveyor and addressed to Target HCA
The Valuer MUST provide at least 3 comparable properties and sale prices
The Valuer must not be related or known to you
The Valuer must inspect the interior of the property and provide a full valuation report
Valuations carried out for bank or mortgage purposes are not acceptable
A copy of the valuation report must be supplied to Target; the inspection date must be shown on the report.
It is a requirement of the Help to Buy Scheme that the valuer who must by RICS registered inspects the interior of the property. This should take about twenty minutes and will include a breif inspection and taking measurements. The surveyor will also inspect the exterior of the property and ask you a few simple questions about the property and the repayment of the loan. Once the inspection is competed writing the report usualy take place on the same day.
It is most important to udnerstand that the Help to Buy Valuations are only valid for three months from the date of the report.
Sadly we have many clients who telephone to say that they are about to complete but the original valuation has just run out of time.
Fortunately we are able to do a desk top update of the valuation for a small charge.
Before requesting a valuation it is thus a good idea to ensure that any potential purchaser of the property is committed or if repaying equity whilst remortgaging that you will be able to obtain the mortgage within the three month period.
Royal Institution of Chartered Surveyors (RICS) Registered Valuers.
Registrered Valuers are required to submit files for audit by the RICS regarding terms of engagement, site inspection, collection of comparables, analysis of comparbles and calculation, and the report.
All valuations are prepared in accordance with the Valuation and Appraisal Practice Guidance Notes (Red Book) published by the RICS to ensure consistency of approach. Standard RICS contracts of engagement for valuations are also used.
Capital valuations and rental valuations can be prepared for both landlords and tenants interests, with or without vacant possession.
Valuations can be required for all types of purposes such as: proposed sales and purchases, lettings, borrowing money, company accounts, compensation, probate, taxation, in a property, pension funds, investment and development appraisals.
Valuations comprises of a short letter describing the property and the nature of the interest to be valued. Whilst at the property the surveyor will usually only take measurements and note the most obvious defects which can be observed by a limited inspection
Page 1 of the Terms of Engagement and Assumptions for the Valuation of 4 Avenue, NG4
by Steve Butler – Chartered Surveyors 1.
Client:
Subject Properties and Use or Classification by the Client
4 Avenue, a residential house with vacant possession
The interest in the property that is to be valued
Freehold with vacant possession.
Standards:
The valuation will be prepared in accordance with the 7th Edition of the Valuation and Appraisal Standards published by the Royal Institution of Chartered Surveyors. Compliance with the standards may be investigated by RICS for the purposes of the administration of the Institution’s conduct and disciplinary regulations.
Special instructions, assumptions or departures
There are to be no departures from the 7th Edition of the Valuation and Appraisal Standards
Date of valuation:
The date of the report unless otherwise stated.
Purpose of the Valuation:
Determination of the capital value of the interest to be valued for the purpose of obtaining probate.
Relationship with the client:
The valuer is an external valuer. The firm or valuer has no previous relationships with the vendor, potential purchaser or potential tenants of the properties. There has thus been no rotation of the valuer or change of the signatory to the report. It is envisaged that instructions to value the portfolio will not be of sufficient frequency to warrant rotation. The fees derived from this instruction will be less than one percent of turnover.
Basis of Value:
Market value of the properties in their existing use. Market Value which is defined as:
The estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in anarm’s-length transaction after proper marketing wherein the parties hadeach acted knowledgeably, prudently and without compulsion.
Currency:
Values are in Pounds Sterling.
Investigations and Assumptions:
· The valuer shall have sufficient knowledge of the area and type of property to be able to undertake the valuations competently.
· The valuer will personally inspect the properties to be valued.
· No title deeds of the properties will be inspected. It will be assumed, unless advised otherwise that there are no particularly onerous restrictive covenants, encumbrances or other unusual matters that would adversely affect the properties and thus alter the valuations significantly. Samples of the different types of leases will be inspected were these are available.
· Information regarding property taxes, town planning, highway matters and other statutory approvals will be obtained verbally from the relevant authority. Where information is limited or not available the valuation will assume that the property is compliant with statutory requirements and local regulations and will not be subject to charges for road and sewer maintenance or unusual taxation.
Page 2 of the Terms of Engagement and Assumptions for the Valuation of4 Avenue, by Steve Butler – Chartered Surveyors..
· No enquires will be made in respect of any mine workings or quarrying in the area. It will be assumed that that the subject property is unaffected by such activities.
· No structural or site surveys will be undertaken and we are therefore unable to report that any part of the property is free from rot or other defect. No warranty or guarantee can be given or is implied as to the structural stability of the property. The property will be assumed to be is in good repair, except for any defects specifically noted.
· Inspections will not be carried out in detail, nor any of the services or installations such as hot and cold water, ducted warm air systems, gas and electrical installations or drainage systems in the property tested. The report will be unable to give any assurance that the buildings or services within are adequate for their purpose or that any part of them is free from defect. It will be assumedthat the services, and any associated controls or software, are in working order or free from defect. No warranty or guarantee is given or implied.
· No soil or underground tests will be carried out. It will therefore been assumed that there are no soil or site problems which would adversely affect any of the existing buildings or any of the open land which may or may not be used for future extensions.
· Ages of properties will be estimated and are for guidance only.
· Measurements will be in accordance with the RICS code of measuring practice.
· There will be no investigations as to whether the land is or has on the past been contaminated, or whether it is on such a register and your legal advisers should make any necessary investigations before you enter into a commitment to purchase the property. The valuation assumes that the property is not contaminated or at risk of contamination and not on a statutory register of such properties.
· It will be assumed that no high alumina cement concrete, wood wool shuttering, blue asbestos or any other deleterious material has been used in the construction of any building. No warranty or guarantee is given that such materials have not been used.
· No allowance will be made for rights obligations or liabilities arising under the Defective Premises Act 1972 or similar legislation relating to the standards of construction, maintenance and safety of property. The valuation will assume that the property will not be subject to such liability.
Information relied on:
The report will rely on information provided by the client or their legal advisors as regards to:
Property tenure.
Special Assumptions:
There are to be no special assumptions.
Fixtures:
Landlords fixtures and plant and machinery normally sold with a property will be included in the valuation. Tenants fixtures and fittings, and improvements will be excluded from the valuation.
Taxation:
The valuation is exclusive of any Value Added or other from of taxation that may apply to the purchase price of an interest in property.
Confidentially
This report is confidential to the clients and for the specified purpose to which it refers. It may be disclosed to other professional advisers assisting you in respect of the purpose, but may no be disclosed to any other person without my written consent. The report, contract documents, notes and other information obtained by the valuer may be subject to inspection by the Royal Institution of Chartered Surveyors as part of the regulation procedures.
Publication
Neither the whole nor any part of the report may be included in a published document, circular or statement or published in any way without my written approval of the form or context in which it may appear.
Page 3 of the Terms of Engagement and Assumptions for the Valuation of 4 Avenue, by Steve Butler – Chartered Surveyors..
Liability
It must be emphasised that no liability or responsibility to third parties can be accepted for the valuation or other comments contained in the report.
Fees:
£175.00 payable in advance for the initial valuation. No VAT is payable.
Complaints:
Steve Butler Chartered Surveyor operates a complaints handling procedure as required by the Royal Institution of Chartered Surveyors. A printed copy is available on request.
To Steve Butler – Chartered Surveyors
To confirm that I have received and read the three pages of terms and conditions in respect of the proposed valuation of:
4 Avenue, NG4
Signed: Dated:
Ms 23 m Avenue
NG3
E-mail:
Please write very clearly.
22nd July 2011
Mrs
Solihull
West Midlands
Dear Madam
Solihull, West Midlands.
Thank you for your instruction to prepare a valuation for the purposes of negotiating the purchase of the remaining interest in a shared ownership property.
Subject Properties and Use or Classification by the Client
Solihull, West Midlands, a residential property in 60/40 percent shared ownership between the tenant and landlord respectively.
Description
The property is situated on a large residential estate developed in the last five years about one mile to the North of Solihull town centre. There are a number of near by non residential uses.
The property is a first floor flat within a block of six with brick faced walls and pitched concrete tile roof. There are PVCu framed windows with double glazing. There is gas fired central and hot water heating.
The accommodation comprises:
Hall with store cupboard and boiler cupboard
Bathroom with four piece suite.
Bedroom 2.1m x 3.2m including wardrobe
Bedroom 3.4m x 3.7m including wardrobe
En-suite with shower hand basin and toilet.
Lounge 3.3m x 4.8m
Kitchen 2.0m x 3.3m with fitted work surfaces cupboard and stainless steel sink.
Gross Internal Floor Area of the property measured in accordance with the RICS code of measuring practice is approximately 76 sq.mtrs.
Outside:
The property is accessed by a communal hall, landing and staircase. Meters are in the hall. There is a communal car park with reserved space and remote bin stores.
Services: The property has all mains services including gas fired central and hot
water heating.
Condition: The property is maintained in a condition typical of its type and age and is well presented
Fixtures:
Landlords fixtures and plant and machinery normally sold with a property are included in the valuation. Tenants fixtures and fittings and improvements (There have been no improvements in this particular case) are excluded from the valuation.
The interest in the property that is to be valued
The long leasehold interest presuming that the tenant has purchased a hundred percent interest and that it can be sold with vacant possession
Investigations and Assumptions:
The valuer who has sufficient knowledge of the area and type of property to be able to undertake the valuations competently has personally inspected the property to be valued.
No title deeds of the properties have been inspected. It will be assumed, unless advised otherwise that there are no particularly onerous restrictive covenants, encumbrances or other unusual matters that would adversely affect the properties and thus alter the valuations significantly.
The valuation assumes that the property is compliant with statutory requirements and local regulations and will not be subject to charges for road and sewer maintenance or unusual taxation.
No enquires have been made in respect of any mine workings or quarrying in the area. It has been assumed that that the subject property is unaffected by such activities.
The property is assumed to be is in good repair. No structural investigations, site surveys, soil or underground tests have been undertaken. No warranty or guarantee can be given or is implied as to the structural stability of the property or that is free from rot, damp, beetle infestation or other defects unless specifically noted in the report. It has been assumed that there are no soil or site problems which would adversely affect any of the existing buildings or any of the open land which may or may not be used for future extensions.
Inspections have not been carried out in detail, nor any of the services or installations such as hot and cold water, ducted warm air systems, gas and electrical installations or drainage systems in the property tested. The report is unable to give any assurance that the buildings or services within are adequate for their purpose or that any part of them is free from defect. It will be assumedthat the services, and any associated controls or software, are in working order or free from defect unless specifically noted in the report. No warranty or guarantee is given or implied.
Ages of the property has been estimated and is for guidance only.
Measurements are in accordance with the RICS code of measuring practice.
There have been no investigations as to whether the land is or has in the past been contaminated, or whether it is on a register of such land and your legal advisers should make any necessary investigations before you enter into a commitment to purchase the property. The valuation assumes that the property is not contaminated or at risk of contamination and not on a statutory register of such properties.
It has been assumed that no high alumina cement concrete, wood wool shuttering, blue asbestos or any other deleterious material has been used in the construction of any building. No warranty or guarantee is given that such materials have not been used.
No allowance will be made for rights obligations or liabilities arising under the Defective Premises Act 1972 or similar legislation relating to the standards of construction, maintenance and safety of property. The valuation will assume that the property will not be subject to such liability.
Information relied on:
The report relies on information provided by the client or their legal advisors as regards to:
Property tenure: The property is understood to be held on a long lease approximately one hundred years unexpired with a monthly charge of £237.00 to cover the rental value of the landlords forty percent interest in the property, insurance and maintenance.
Special Assumptions:
There have been no special assumptions.
Standards:
The valuation will be prepared in accordance with the 7th Edition of the Valuation and Appraisal Standards published by the Royal Institution of Chartered Surveyors. Compliance with the standards may be investigated by RICS for the purposes of the administration of the Institution’s conduct and disciplinary regulations.
Special instructions, assumptions or departures
There are no departures fro the 7th Edition Valuation and Appraisal Standards.
Date of valuation:
The date of the report unless otherwise stated.
Relationship with the client:
The valuer is an external valuer. The firm or valuer has no previous relationships with the vendor, potential purchaser or potential tenants of the properties. There has thus been no rotation of the valuer or change of the signatory to the report. The fees derived from this instruction are less than one percent of turnover.
Basis of Value:
Market value of the properties in their existing use. Market Value which is defined as:
The estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in anarm’s-length transaction after proper marketing wherein the parties hadeach acted knowledgeably, prudently and without compulsion.
Currency:
Values are in Pounds Sterling.
Taxation:
The valuation is exclusive of any Value Added or other from of taxation that may apply to the purchase price of an interest in property.
Valuation:
The Market Value of the Property is considered to be £145,000. One hundred and forty five thousand pounds or thereabouts.
Confidentially
This report is confidential to the client for the specified purpose to which it refers. It may be disclosed to other professional advisers assisting you in respect of the purpose, but may no be disclosed to any other person without my written consent. The report, contract documents, notes and other information obtained by the valuer may be subject to inspection by the Royal Institution of Chartered Surveyors as part of the regulation procedures.
Publication
Neither the whole nor any part of the report may be included in a published document, circular or statement or published in any way without my written approval of the form or context in which it may appear.
Liability
It must be emphasised that no liability or responsibility to third parties can be accepted for the valuation or other comments contained in the report.
Fees:
The fee for the valuation was £150.00 payable in advance. No VAT is payable.
Complaints:
Steve Butler Chartered Surveyor operates a complaints handling procedure as required by the Royal Institution of Chartered Surveyors. A printed copy is available on request.
Yours faithfully
Original was signed and dated
S.J.M Butler.
