A Red Book valuation London property owners ask about is a formal RICS valuation prepared to professional standards, and this guide from IQSURV, a RICS regulated firm, explains when one is used.
When a Red Book valuation London lenders and solicitors request is needed
Because a formal valuation follows recognised professional standards, it is often requested where a figure will be relied on by others. Speak to your solicitor, accountant or lender about which type of valuation they require before you instruct anyone.
If a lender, accountant or court asks for a “Red Book valuation”, it can sound technical. In plain terms, it is a property valuation carried out to the RICS Valuation – Global Standards, known as the Red Book. This guide explains what that means, when one is usually requested, and what to expect if you need one in London.
What is a Red Book valuation?
The Red Book is the set of professional standards that RICS members must follow when they carry out many types of valuation. It sets out how the valuer should work, what must be disclosed, how the basis of value is defined and how the report is written. The aim is a consistent, transparent opinion of value that the person relying on it can trust.
A Red Book valuation is not a different kind of property. It is a valuation prepared with a defined scope, a clear basis of value, a stated valuation date and a formal written report, by a qualified valuer who is independent and has the right knowledge of the local market.
When might you need one?
Requirements differ by situation and by the organisation asking, so always check exactly what they have asked for. Common examples include:
- Lending and re-financing, where a lender wants a formal valuation of the security.
- Company accounts and financial reporting, where property is held by a business.
- Shareholder, partnership or trust matters where a fair, documented value is needed.
- Some legal, estate and divorce situations where a formal valuation report is requested.
Not every valuation has to follow the Red Book. For a rough guide to the market, a simpler opinion may be enough. If you are not sure, ask the person or organisation requesting the valuation what standard and which basis of value they require before you instruct anyone.
What does the report cover?
A formal report normally identifies the property and its tenure, the date of valuation, the basis of value used (for example market value), the assumptions made and any special assumptions, the inspection carried out and the valuer’s opinion of value. It will also state its purpose and who may rely on it. Reading these sections carefully matters, because a valuation prepared for one purpose should not be reused for another without checking it is still suitable.
How is it different from a survey?
A valuation tells you what a property is likely to be worth. A RICS Home Survey, such as a Level 2 or Level 3, reports on the condition of the building. Buyers often want both, but they answer different questions. IQSURV, a RICS regulated firm in London, provides both RICS Home Surveys and RICS valuations.
Getting a valuation in London
London property varies enormously from street to street, from period conversions and flats to inter-war semis, so local knowledge matters. When you get in touch, it helps to tell us the purpose of the valuation, who has asked for it, the valuation date needed and any deadline. That lets us confirm the right scope and basis of value from the start.
This article is general information only and is not tax, legal or financial advice. If your valuation relates to tax, a legal dispute or a lending decision, speak to your solicitor, accountant or lender as well.
To discuss a Red Book valuation, get in touch with IQSURV or request a quote.
Next steps after reading about Red Book valuation London
If this guide on Red Book valuation London raises questions about your own property, you may find our guides on market valuation in London and probate valuations useful. The Royal Institution of Chartered Surveyors sets professional standards for the industry, and you can read more on the RICS website. To discuss your situation, get in touch or request a quote through our home page, or call 020 3780 5386.