Menu
The property market in Notting Hill and comparable areas in London, Bristol, Birmingham, Manchester, and Cardiff, moves rapidly and can be very difficult to read. Whether you are a first-time buyer or an investor or are simply looking to sell a property, being able to understand the intrinsic property sector of Notting Hill can make a big difference to one’s decision-making processes.
A leasehold property is usually worth less than a freehold property. This is because a leasehold property must continue to pay ground rent and abide by the terms of a lease that is probably the most valuable when it has very little time left to run. A chartered surveyor considers the length of the lease, the fees attached to the lease, and potential legal problems that could arise to figure out what the property is worth in the event that the lease is to be extended.
Valuing a commercial property requires a far-ranging understanding of business economics, the immediate and distant commercial real estate markets, and also the capabilities and potential of the property itself to generate income. Investment property appraisers take a hard look at what’s happening in and around the property; how accessible and usable it is or can be made; and also at the current financial condition of its tenants, if it’s tenant-occupied. For appraisers’ clients, the appraisals are about far more than the mere number that gets printed on the report. The clients rely on the appraisals to make key business decisions regarding their holdings of real estate.
It is obviously crucial to know a property’s worth when one is trying to sell it, but even when not on the market, understanding a property’s value can be very important—for legal and tax reasons, for instance. Inheritance taxes and capital gains taxes are both calculated based on property valuations, and if those valuations are incorrect, you could find yourself on the wrong end of a tax bill. A chartered surveyor with the right experience can provide a formal valuation for use in these calculations. This might save you from having to pay taxes at a higher-than-necessary rate, and it might save your estate from being challenged because it understated the value of the property when it was acquired.
If you want to know what a shared ownership property is worth, first consider how many shares you own. Then, look at the terms of the leasehold or freehold arrangement with the housing association (or other owner) that governs your relationship with the property. The surveyor values the “whole” property as if it were unencumbered (unhindered by any leases, etc.) and then calculates what your portion of the value is. This is particularly important when you’re buying more shares, selling the property, or remortgaging.
Buying a house is a significant financial undertaking, so it is of course vital to determine in advance what the actual market price is. You can obtain this information by getting a proper assessment, which will inform you not only about the general condition of the house but also the whole host of particulars that make it what it is: the dimensions, the number and the quality of the spaces (both indoor and outdoor), the age of the house, the obsolescence (if any) of its essential systems (plumbing, wiring, etc.), the location (including its public transport access), and, to the extent that it matters, the adequacy of the parking spaces.
If you want to either redeem your Help to Buy loan or buy more equity so you can reduce your rental payments, it is essential to have a current valuation of your property. That way, you can be sure you are getting a fair deal when you either pay off your loan or make a purchase of additional equity.
The Right to Buy program allows people who rent from councils or housing associations to purchase their homes at discounted prices, but how can you trust that the valuation given by your landlord is a true reflection of the home’s worth? To ensure a more objective verification, it is recommended that tenants opt for a CIOB, RPSA or RICS Right to Buy valuation. A thorough structural survey is also important.
When it comes to losing someone close to you, estate matters need to be taken into consideration as well as grieving. In situations like these, surveyors be of great use. They help with something called probate, which is a valuation of the estate and the assets within it so that the executor of the estate can fairly and legally distribute the assets to the heirs and pay any and all taxes due.
In the UK, properties are taxed on an annual basis, with the most significant tax being the one that applies to a company whose property is valued at £500,000 or more. This tax, called the Annual Tax on Enveloped Dwellings (ATED), requires companies that own property in the UK to file a special tax return each year. When a company finds itself liable to ATED—a situation that many ordinary British dwellers are likely better off avoiding—the first thing it should do is to have an RICS-qualified surveyor take a close look at the valuation.
As a non-resident who sells property in the UK, figuring out your financial plan for the sale can be quite difficult. Your plan must cover the associated taxes and offer workable legal routes to sell your Notting Hill property. A property appraisal can help you by giving you a valuation as a non-resident. This sort of appraisal shows your team of legal and financial advisors and you what your British property is worth and what your tax and other obligations are likely to be for your property.
The Non-Domicile Valuation applies to individuals who are living in the UK but are not domiciled here. It is an important form of assessment for individuals who own property in the UK, especially if they could be held liable for inheritance tax on their worldwide assets.
A Divorce Settlement Valuation provides a means of ascertaining the true value of your property so that it can be divided accurately in your divorce settlement. This guarantees that you will not be short-changed and that any joint property will be fairly valued for division among the parties.
The Full Building Survey report includes the following:
When it comes to the detail that the surveyor will go into concerning defects, repairs, and maintenance, the Homebuyer Survey is fairly standard. Full Building Surveys, however, are more refined and go into more detail about possible and likely defects. Repairs and maintenance are covered in more detail. The Survey cost depends on the age, size, and value of the property.
The analysis they undertake is a visual inspection. This means that, for the most part, the building components that can be seen will be looked at and assessed in accordance with the surveyor’s remit. The Home Survey Report will show you the visible defects and then go on to discuss the kinds of partially hidden or totally hidden defects that the surveyor thinks you should be aware of. It will also try to clarify what kinds of repair work need to be done and the nature of the repairs. The survey is effectively a way to consider “defects” and their potential impact on the building.
A Building Survey Report contains the most important information for understanding the condition of a property. The surveyors that undertake the work follow a set procedure. The first part of the report contains a general overview of the property and its surroundings. The second part details the major and minor problems with the property’s components, inside and out. These problems range from serious structural defects to issues with doors or windows that don’t close properly, and everything in between. The report is written in clear English, complemented by diagrams and photographs. If any of the problems found are what a surveyor might consider important, that’s what the report indicates—using clear and unambiguous language.
Surveyors usually use a tick box to indicate methods of repair when drafting a building survey report. They are also required to comment on the timescale of any repairs. A condition rating is typically included: what needs to be addressed immediately, what is in the process of deteriorating but is in reasonable condition, and what has not deteriorated at all.
A building surveyor is responsible for a variety of checks and tests during a building inspection. These could be checks or tests for damp and woodworm, or they could be visual inspections of the building’s structure. In building surveying, there are visual inspections of roofs – checking for tiles and slates (if applicable) and also checking for leadwork (if applicable) and looking at the junctions between roof and wall. If the wall structure has brick in it, the surveyor will visually check for any “spalling” (brick breaking apart visibly) and any bulging (brick failing to hold its place visibly), for example.
If defects need fixing immediately, then the options recommended for this survey specify what to repair and give some idea of how long the problem has existed. For the most part, this survey describes recommended repair approaches that are standard in the industry and that do not require excessive expenditure. Future maintenance is also discussed, including what to expect when the problem being surveyed is not repaired and what to expect with repairs that are made but with questionable methodology.
Your surveyor will explain some of the legal aspects of purchasing the building, covering—in as much or as little detail as you desire, and their implications, but this is subject to your solicitor verifying.
You might consider having a separate market valuation done to determine whether the property’s asking price is warranted. You’ll also need a reinstatement cost valuation for insurance reasons.
RICS’s industry guidelines suggest building surveys for properties that are large, very old, in some disrepair, or have unusual features. Building surveys are also recommended if you plan to do any significant renovations or extensions.
If you’re purchasing a relatively modern home that’s in decent shape and built to ordinary standards, then a Home Buyer Survey is an acceptable choice. If you want the assurance of an inspection and report that are pretty much guaranteed to turn up any issues that might be hidden or just hard to see, then you should go for a Full Building Survey instead.
The Full Building Survey is more detailed; it is more specifically tailored to the property your surveyor would be inspecting. It also comes with more advice on the visible defects found and on the potential hidden defects that they suspect may be present. Your surveyor will illustrate reports with photographs so that you can clearly see what has been discovered. Both the Home Buyer and Full Building Surveys describe the repairs needed, the order in which the repairs should be done, and the kind of “maintenance measures” that will be required to keep the property in good condition.
A HomeBuyer Report does include a market valuation as well as reinstatement costs. However, a Full Building Survey does not. The main reason for the differences in what is and isn’t included in the two types of reports is how focused the reports are on the condition of the property. The Full Building Survey is the most in-depth and comprehensive survey of a property that you can have done.
When the splitting of assets in a divorce becomes a matter of dispute, it is essential that property be valued impartially and accurately. The courts may appoint a certified valuer affiliated with the Royal Institute of Chartered Surveyors, Chartered Institute of Building or Residential Property Surveyors Association to provide expert guidance on the fair and reasonable division of property in a divorce. You might also obtain your own valuation of property to ensure you have received your just and equal share to minimize future reparative legal expenses.
Looking for a Chartered Surveyor? If you are buying a property, contact us for a building survey. Our panel of CIOB, RPSA and RICS surveyors will help you with the Level 2 or Level 3 property survey you need in Notting Hill. We can also assist you in Red Book Valuations, Party Wall Awards and other services. Reach out to us today for building surveyors, valuers and party wall surveyors in London!
