Valuations are undertaken by Gibson Gale Limited typically for the following purposes;
- Mortgage finance
- Building Insurance
- Rent review
- Lease renewal
Where a client obtains finance from a bank or other lending institution the lenders usually require a valuation from a Chartered Surveyor to ensure that the value of the property exceeds the amount of the loan. This is an open market valuation being the sum that could reasonably be obtained given exposure to the market at the date of valuation.
Ligation/Expert Witness Valuation
Where a dispute relates to the value of property such as in a matrimonial situation where the court requires that a valuation be prepared by a Chartered Surveyor who is an expert in valuation. In some cases, the court will allow each party to appoint an Expert. In most cases, the court directs that a Single Joint Expert be appointed to report to the court independently of the parties. The parties may ask questions of the Valuer, and the court may direct that the Valuer appear in court to be examined and cross-examined.
There are many circumstances when a valuation is necessary in connection with taxation. Valuations are often required for Inheritance Tax, Capital Gains Tax, Pension Schemes, etc.
A Buildings Insurance valuation is an assessment of the cost of reinstatement of premises in the event of fire or other damage. Many property owners insure their buildings for the market value, but this figure is different from the reinstatement cost. In many cases, the reinstatement cost is lower than the market value and a saving in premiums may be obtained, although in some cases, the reinstatement cost may be higher than the market value. If a property is under insured, then any claim, however small, will be paid pro-rata.
Reinstatement valuations include the cost of building works, demolition, site clearance and professional fees. Outbuildings, roads, paths, boundary walls and fences must be included.
Rent Review Valuations
Many leases for commercial premises provide for periodic reviews of the rent. It is necessary to carry out a market rental valuation and negotiate a revised rent either for the landlord or the tenant.
Tenants of commercial property usually have a right to renew their lease under the Landlord and Tenant Act. It is necessary to carry out a rental valuation and agree the lease terms. Failing agreement, the Act provides for the court to determine the rent and other terms, and it is usually necessary for each party to submit valuation evidence to the court.
Clients often require freehold or leasehold property for occupation, investment or redevelopment.
Development appraisals are under taken to assist the developer in his decision making process.