Here at Austin Gray, we’ve had an excellent start to 2017, welcoming Chartered Surveyor Robert Paine to our Professional Services team. With over 20 years’ experience in completing valuation instructions for bank lending purposes, with specialist knowledge in redevelopment sites, we’re sure that Robert will bring even more value to our already expert team.
To celebrate Robert’s arrival, we thought it was only fit to further explore some of the valuations work that he and Professional Services team carry out.
What is a valuation and when do you need one?
First things first, it’s important to note that a valuation is not the same thing as a survey. Whatever type of valuation you need (there are a few), the basic principle remains the same:
The valuer is responsible for coming up with a current, up-to-date market value of the property for the purpose of lenders, tax issues, accounts, acquisition and many other reasons.
Whenever you’re thinking of buying a home or property, extending your lease or developing a site for residential or commercial purposes, your lenders will want to know how much this is going to cost them and how much they’re willing to lend you. Because of this, it’s essential to get a professional, accurate valuation from an RICS qualified surveyor.
Explaining development appraisals is essential to demonstrating Robert’s expertise on the team. As we’ve already explained, valuations and appraisals are essential for banks when making the decision to lend or not. This is the same throughout property sectors, which has a marked impact upon housing delivery and developers working in the residential sector. A development appraisal is required in order for lenders to assess the viability of a given project, commercial or residential.
However, this document can also be used by the developers themselves, in order to get a sense of the economic viability of the project for them. In this case, the developer requires a valuation of the site which takes into account:
- How much the development can be expected to sell for
- Site acquisition costs
- Costs of construction
- Planning obligations
- Financial return to the developer.
Commercial landlords and tenants
Another area of expertise for Robert and the team lies in valuations for commercial landlords and tenants. In order to ensure their security, both landlords and tenants occasionally require a professional valuation. For tenants, rent reviews confirm that the rent is sustainable and in line with market trends, providing the best value for business costs. For landlords, a valuation on the property can ensure that lease renewal with the current tenants is financially viable.
Whatever your valuation needs, Robert and the professional services team are always on hand and willing to answer any of your questions, as well as provide all-important advice on the service that is right for you, so please don’t hesitate to get in touch.