Red Book Global Standards

What is a Red Book Valuation ?

People need property valuations for all kinds of reasons. From secured lending appraisals to divorce settlements and tax planning, it is essential from time to time to arrange an accurate valuation. In these situations, you need a Red Book valuation from an experienced, qualified professional.

So, what is a Red Book valuation? Who can conduct them and do you need one? Read on to find out more.

What is a Red Book valuation?

This specific type of property valuation is carried out by RICS Registered Surveyor. This professional will have passed essential qualifications, is a member of the Royal Institution of Chartered Surveyors (RICS), and is likely to have years of experience in exactly this field.

The Red Book Global Standards details mandatory rules and best practice guidance for surveyors who wish to carry out valuations and a Red Book valuation guarantees that your valuation adheres to these rules and principles. Simply put: a Red Book valuation will be accurate, trustworthy and respected.

How is a Red Book valuation calculated?

A RICS Chartered Surveyor will assess the property and write a formal report detailing its current market value. They will:

  • Check title and lease documents
  • Inspect the size and condition of the property and its services/amenities
  • Compare the property to transactions of similar properties in the area/a similar area (within a reasonable timeframe)
  • Check existing and historic planning consents
  • Carry out further research including rights of way, restrictive covenants, flood risks, chancel repair liability, and land contamination.
  • Calculate a valuation and present you with a detailed, official report 

The valuation is usually valid for three months but there is sometimes the option to extend its validity.

RICS Red Book valuation vs market appraisal

You don’t always need a RICS Red Book valuation. Sometimes, a market appraisal is enough e.g. if you’re putting your house on the market and just need a guide to set the price.

A market appraisal is provided for free by an estate agent. It is an estimate of what your property could fetch on the open market but is not a valuation. Remember that the estate agent has a vested interest in you selling your home with them and for this reason, a market appraisal may not always be accepted in many situations e.g., dividing an asset or calculating Capital Gains Tax.

A Red Book valuation is completely impartial and carried out by a RICS Chartered Surveyor. It is accurate and includes clearly defined, justified valuation results.

When do I need a Red Book valuation?

There are a few situations in which you may need a Red Book valuation including:

  • Tax planning
  • Calculating probate
  • Calculating Capital Gains Tax
  • Transferring assets into a SIPP pension fund
  • Shared ownership transactions
  • Help to buy loans
  • Secured lending for the purchase of land or buildings
  • Development appraisal for site valuation
  • Charities selling properties, in accordance with the Charities Act
  • Divorce and other court proceedings
  • Resolution of disputes through mediation or arbitration
  • You may also choose a Red Book valuation for rent reviews and other negotiations

Get in touch

So, a Red Book Valuation is an impartial, completely accurate and respected valuation, useful and necessary in a variety of situations. If you’d like to arrange this type of valuation or have got any further questions, please get in touch. At Trinity Rose, our RICS Chartered Surveyors and Registered Valuers have years of experience carrying out these valuations and will be happy to help.