Commercial Building Surveys Archives

All You Need to Know About Red Book Valuations

Posted on December 16, 2024 by dev@perryhill

All You Need to Know About Red Book Valuations

When it comes to assessing property value, RICS (the Royal Institution of Chartered Surveyors) provides a definitive framework for professional valuations known as the ‘Red Book’. This globally recognised standard ensures transparency, accuracy, and reliability in property valuations.

What is a Red Book Valuation?

A Red Book valuation is more than just a property price estimate – it’s a comprehensive assessment conducted by a RICS Registered Valuer following strict professional guidelines. These valuations provide a robust, legally defensible market value assessment.

When Do You Need a Red Book Valuation?

Any time that you need a formal property valuation for tax purposes or legal proceedings, a RICS Registered Valuer will need to conduct a Red Book property valuation.

Red Book valuations are crucial in several scenarios, including:

Tax planning and probate calculations
Capital Gains Tax assessments
SIPP pension fund asset transfers
Charity property sales (in line with the Charities Act)
Divorce and legal proceedings
Mediation and arbitration disputes
Rent reviews and property negotiations

The Red Book Valuation Process

A typical Red Book valuation involves:

Detailed property inspection
Comparative market analysis
Assessment of three comparable recent property sales
A formal written report detailing the property’s market value

A Red Book valuation is typically valid for three months, but it can be extended in certain circumstances.

Why Choose a RICS Registered Valuer?

Working with a RICS Registered Valuer ensures:

Adherence to international Red Book standards
Rigorous, impartial assessment
Comprehensive property evaluation
Legally recognised valuation documentation

Red Book Valuations from Perry Hill Surveyors

At Perry Hill Chartered Surveyors, our RICS Registered Valuers provide expert Red Book valuations for residential and commercial properties. We combine traditional expertise with contemporary valuation techniques.

Need a Trusted Property Valuation? Contact Perry Hill today.

Disclaimer: Valuations are subject to market conditions and specific property characteristics.

Why use a building surveyor at the start and end of your commercial lease?

Posted on June 20, 2023 by admin

A commercial building survey is not just for properties being sold. In fact, there are many reasons why you might appoint a surveyor to carry out a building survey or inspection on a rented commercial property.

Assessing the condition of the property

All commercial leases have clauses regarding the condition of the property, and how it should be maintained. This wording is designed to protect both landlords and tenants. But when it comes to enforcing these clauses, or ensuring a commercial property is being properly maintained, professional help is often needed.

This is where a trusted commercial building surveyor is worth their weight in gold. They can carry out building surveys and other inspections, and provide detailed reports (including photos) on the condition of the property and any maintenance issues. With this in mind, having a building survey done at both the start and end of any lease is a good way to reduce risk and ensure peace of mind.

As well as a formal commercial building survey, surveyors can also help with:

Schedule of Dilapidations – when a tenant has failed to properly maintain the property, this report outlines the items of disrepair and specifies the work needed to bring the property up to scratch.
Photographic Schedule of Condition – this document sets out the condition of the property in forensic detail, and covers the repair and maintenance obligations for the length of the lease, as agreed between the landlord and tenant.
Rent reviews – setting out the property’s current rental value, this report can be used to support lease negotiations and ensure the rent is set at the proper market rate.

Benefitting commercial landlords and tenants alike

Many commercial tenants choose to have a property survey done before they take on a new lease because it can save them a lot of money in unexpected repairs. And for landlords, surveys and inspections are a vital way to protect their investment.

Ultimately, working with a professional commercial property surveyor means both sides can be sure the advice given is accurate and fair – which helps to promote positive communications and deepen trust between the landlord and tenant.

At Perry Hill Chartered Surveyors, we support both landlords and tenants with the full range of surveys, inspections and valuations. Discover how we can help you get the most out of your commercial lease agreement.

What is a Photographic Schedule of Condition report? (And how can it benefit landlords and tenants?)

Posted on May 7, 2023 by admin

Last month, we explored what happens when a tenant fails to repair or maintain a building, and how a Schedule of Dilapidations can help to document and address maintenance issues.

Yet, there’s another report that can serve to avoid unexpected maintenance issues and disputes altogether: the Schedule of Condition. Let’s look at what a typical Schedule of Condition covers – and see how it benefits both parties in a commercial lease.

A forensic breakdown of the property’s condition

The Schedule of Condition provides a factual record (including detailed photographs) of the condition of a property. Essentially, it supports the lease by acting as a contractual agreement between the landlord and tenant on the condition of the property, and the repair/maintenance duties for the duration of the lease.

The Schedule of Condition is therefore used at the start of a new lease, and is designed to protect both parties against future disputes – particularly at the end of the lease.

If a landlord or tenant attempts to prepare their own Schedule of Condition without taking professional advice, it’s unlikely to be detailed enough to provide any real protection. That’s why this condition report should always be prepared by a chartered surveyor.

Protecting landlords and tenants

Any commercial lease will have a section covering the tenant’s obligations to repair and maintain the property. Without a detailed Schedule of Condition, the extent of those obligations can be open to interpretation – potentially leading to disagreements further down the line.

Because the Schedule of Condition provides contractual certainty on the state of the property and maintenance requirements, it reduces the risk of unpleasant (and potentially expensive) surprises for either party. What’s more, at the end of the lease, it eliminates the need to spend time and money negotiating any claim for dilapidations.

This peace of mind is priceless for both landlords and tenants. For the landlord, the Schedule of Condition reduces their liability and clarifies their expectations. And for the tenant, they know up front exactly what their maintenance obligations will be.

Get expert help

We at Perry Hill Chartered Surveyors believe the Schedule of Condition is a vital prerequisite when leasing premises, and our team has many years’ experience preparing these reports for both landlords and tenants. Click here to discover how our forensic approach to detail can help protect your interests.

Looking for new commercial premises? A chartered surveyor is worth their weight in gold

Posted on September 19, 2019 by admin

Whether you’re starting a new venture, expanding your operations, looking to downsize, or moving to a new location, finding the right commercial premises is critical. Having a good chartered surveyor on your side can save you time, money and hassle during this process – and throughout the lifecycle of your occupancy. Here’s how.

Finding and assessing properties

(commercial agency services)

Chartered surveyors are property experts. So it makes sense that they assist with property search and selection, helping businesses with both lettings and property sales. At Perry Hill, we’ve found this approach brings big benefits; for example, when it comes to negotiating rent or assessing the condition of a property, we have an in-depth idea of the market and building. This helps the client avoid paying too much (in terms of rent or sale price), and helps reduce the risk of acquiring a property with defects.

Mitigating risk

(dilapidations and repair)

You’d expect to have a building survey done before purchasing a home, but did you know chartered surveyors regularly carry out building surveys on commercial lettings, as well? Many commercial tenants opt to have a building survey completed before they take on a new lease because it can save a fortune in unexpected repairs. It also helps to reduce the risk of inheriting repair obligations from a previous tenant.

Another way to reduce risk in commercial lettings is to get a surveyor to draw up a Schedule of Condition at the start of the lease. This forensic report on the property’s condition – including detailed photographs – acts as a contractual agreement between the tenant and landlord, and clearly defines the condition of the property. This serves to limit the tenant’s obligations to repair or maintain the property, and protects both parties against future disputes.

Negotiating a fair rent

(market value)

Engaging Perry Hill as rent review surveyors is a great way to ensure you’re not paying over the odds for your commercial premises. During the rent review, a chartered surveyor will assess the rental value of the property, taking into account valuation standards and current market conditions, then provide a detailed report on its rental value – a vital tool for rent negotiations, be they at rent review or lease renewal.

If you’re looking for new commercial premises, Perry Hill Chartered Surveyors can support you with the search and selection, carry out building surveys and inspections, and provide trusted rent reviews. What’s more, our experienced surveyors are accredited by RICS, the Royal Institution of Chartered Surveyors, meaning you can count on getting accurate, fair advice every time.

Why You Should Get a Pre-Building Schedule of Condition Report Before Commencing Building Work

Posted on August 20, 2019 by admin

When carrying out construction work on your property, there’s always a risk of damage to a neighbour’s property – especially in terraced and semi-detached properties. To help reduce liability and scope for neighbour disputes, it’s well worth investing in a pre-building Schedule of Condition report before work starts.

What is a Schedule of Condition?

The Schedule of Condition is essentially a building survey, but one designed to record the condition and defects of an adjoining property. It’s a forensically detailed report (including photographs) itemising the full condition of the neighbouring property pre-works.

Why document the condition of your neighbour’s property?

Because it reduces your risk in the long term. For example, if your neighbour files a claim for damages resulting from your building works, you’ll have a complete, independent record of their property’s condition before work started, and this will help to determine whether their claim has any grounds.

What sort of construction work are we talking about?

At Perry Hill, we recommend getting a Schedule of Condition report in advance of any building project that might impact neighbouring properties. This may include a rear extension, structural alterations, loft conversion or basement conversion. The report can be used for both residential and commercial properties.

Investing in peace of mind

Construction work can be stressful and disruptive. If there’s one thing you don’t need on top of that upheaval, it’s a dispute with the people next door. For you and your neighbour, the Schedule of Condition report provides important reassurance, because both parties know there’s a factual record of the adjoining property’s condition before work started.

Then, when the construction work is finished, a further inspection can be carried out, checking off against the Schedule of Condition report and confirming whether any damage or issues have arisen as a result of the works. It’s a sensible way to maintain good neighbour relations before, during and after a building project.

To find out how a pre-building Schedule of Condition can help ensure your construction work is a success, talk to Perry Hill. Our team of chartered surveyors can carry out all kinds of building inspections and reports, and provide trusted advice on the best way forward for your property.