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.
A Taste of the Season with Chef Lilly Hemmings
As the nights draw in, temperatures drop and the clocks go back, the cravings for winter comfort foods begin to form. Cottage pies, Sunday roasts, and hearty casseroles are sure to be go to meals in the coming months. However, now more than ever, shopping locally and using in-season produce should be a top priority in every household, not only to support British farmers and reduce food miles, but also because it can have a positive impact on your budget.
Take A Minute To Shop Seasonally - A Taste of the Season with Chef Lilly Hemmings
Meet Charlotte, Founder of Studio Chappell – Our Official Interior Design Partner
We’re delighted to offer a complimentary one-hour design consultation with Charlotte Chappell, Studio Chappell, our official interior design partner. Whether you're planning a full renovation or simply looking to refresh a single room or kitchen, Charlotte can provide her expert guidance tailored to your needs.
Meet Charlotte, Founder of Studio Chappell – Our Official Interior Design Partner
Why Local Expertise Still Matters in the Digital Property Market
In an age when almost every property search begins online, it’s tempting to think that technology has replaced the need for local expertise. After all, digital platforms can showcase homes in seconds to a national and international audience, complete with glossy imagery, virtual tours, and videos, and instant alerts. Yet, in practice, it has never been more important to have a trusted local expert guiding you through the process.
Why Local Expertise Still Matters in the Digital Property Market
Renters Rights Bill - Update
The House of Lords have now completed their scrutiny of the Renter’s Rights Bill and yesterday The House of Commons finished their final stage of reviewing the Bill, before now going for Royal Assent.
Renters Rights Bill - Update
