What Is A Property Valuation?
A property valuation is an inspection carried out to help determine the current market value of a property.
It is usually undertaken by an estate agent or an independent valuer, typically acting on the instructions of the vendor or a lending institution who are considering funding its purchase. Buyers may also request a property valuation if they are considering purchasing a property, in addition to structural surveys that assess its physical condition.
When Might I Need A Valuation?
There are multiple times you may need a valuation, it’s not just about getting an idea of price to sell or justifying a price to buy at.
Probate Valuations
If you are the executor of an estate that includes property, you may need it valued. This will affect reporting the estate to the HMRC and has an impact on Inheritance Tax. If you are an inheritor of a property, valuing it by probate allows you to make an informed choice about selling it on, and how you would organise splitting the estate to multiple inheritors.
Matrimonial Valuations
If you are divorcing, you’ll be organising your settlement, or working out how you separate your assets. Your property is likely to be the most expensive item you own, so getting it valued by an unbiased Chartered Surveyor means you can come to a fair agreement based on what the property is actually worth, rather than it being approximated by either side.
Shared Ownership Valuations
If you have a shared ownership property, you will own a portion of it, and pay rent on the remaining portion. Some people try to buy a little more of the property whenever they can, which increases their equity and reduces their bill. This is called ‘staircasing.’
Every time you try to increase your portion of your property, you’ll need a valuation on the current value. This is so you are paying the most current market rate when you buy the next portion.
Help To Buy Valuations
If you bought a Help to Buy property, when the time comes to sell it, you’ll need a valuation. The Help to Buy Equity Loan requires you to repay the 20% equity loan they provided when you bought the property. When you sell the property, you will pay back 20% of the current value.
Similarly, if you aren’t selling your home, but want to pay off your help to buy equity loan, you can either pay the whole 20% or half of it. Whenever repaying, you will need a valuation to determine just how much the equity loan value will be.
