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.
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As winter begins to loosen its grip on the Cotswolds, one of the most uplifting signs of the changing seasons quietly emerges, snowdrops. These delicate white flowers, often pushing through frost-hardened ground, bring a sense of hope and renewal, and nowhere is this more beautifully displayed than the snowdrops at Painswick Rococo Garden.
Snowdrops in the Cotswolds: A Winter Highlight at Painswick
Inheritance Tax and Agricultural Property Relief
This has been a hot topic since the surprise announcements in the Autumn budget of 2024 and has threatened to turn upside down tax planning for farmers and the affordability of succession. The short article below captures the key facts and implications which have been debated from farmhouse kitchen tables up to the Government in Westminster and at every level in between…
Inheritance Tax and Agricultural Property Relief
A Very Happy New Year
Happy New Year! We are all back and fully underway into 2026. It is early days, but properties are already going under offer across all our offices and exchanges are securing homes for excited new owners.
A Very Happy New Year
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If the start of the year calls for rest, renewal and a little indulgence, the Cotswolds delivers in spades. Coupled with rural tranquillity, these havens of relaxation and award-winning spas, are the region’s most restorative places to switch off and reset.
The New Year Reset: The Cotswolds’ Most Luxurious Spas
