What is a “Red Book Valuation”?
Banks, agents, solicitors and accountants will be familiar with red book valuations, but often their clients are not. We thought it would helpful to give an explanation.
Formal valuation reports are always needed for bank security valuations, divorce and litigation and are very often required for capital gains tax, inheritance tax and probate.
These formal valuations are carried out by Registered Valuers who are professional members of the Royal Institution of Chartered Surveyors (RICS). The valuations have to comply with the RICS Valuation Global Standards 2017. Historically these were produced in a large red ring binder known as the “Red Book”. The name has stuck ever since, even though the current standards have not got much red on at all!
A “Red Book” valuation is designed to ensure that high standards of inspection, investigation, analysis, definitions, justification and presentation are met. The end product should therefore be a well considered and robust document that the intended parties can rely upon.
The process of undertaking a red book valuation involves the following:
Confirming instructions and valuation requirements, including caveats, reservations and assumptions with a Terms of Engagement letter. This needs to be signed and included within the valuation report.Ensuring there is no conflict of interestInspection of the propertyFurther research into matters that might affect the property e.g. planning, land designations, contamination, title & tenure, rights of way etc.Gathering, analysing and recording comparablesUndertaking valuation calculationsPulling everything together into a concise report.
The “added value” that Butler Sherborn provides over and above the production of the report is making the time to understand the clients wider situation and valuation requirements as the need for a valuation is usually a part of a wider matter that is important to understand. This often involves working with the clients legal and tax advisors to ensure the best outcome.
If you have any queries or if we can be of any assistance, please contact the Rural Valuation Team on 01285 883740.
Predictions for the Cotswold Residential Property Market 2025
The Cotswolds, still providing a diverse quality of life and accessibility to London, will continue to attract buyers both locally and as second homes.
Predictions for the Cotswold Residential Property Market 2025Christmas Wishes
The Butler Sherborn Team would like to wish all their clients, friends and connections a very Happy Christmas and look forward to seeing many of you in 2025.
Christmas WishesCirencester Christmas Lights Switch On Saturday 30th November 2024
This year’s Advent Market and Light Switch On will be held on Saturday 30th November followed by a supersized Advent Market on Sunday 1st December.
Cirencester Christmas Lights Switch On Saturday 30th November 2024Treat yourself – Relax in the most luxurious Spas in the Cotswolds
The Cotswolds are extremely fortunate to be able to offer some of the most beautiful and spoiling spas in the country. Coupled with rural tranquillity, these havens of relaxation offer a blissful escape from the hurly burly of the Christmas festivities. There is exceptional walking, and cycling, and even wild swimming for the courageous, in the Cotswolds!
Treat yourself – Relax in the most luxurious Spas in the Cotswolds