valuation report
📖 What is valuation report? Meaning and definition
A valuation report is a crucial document in property-related legal proceedings, particularly in the context of tenancy and freehold interests in the UK. It is typically prepared by a qualified expert, such as a surveyor, to provide an independent assessment of a property's value. This report is often required by tribunals, such as the First-tier Tribunal (Property Chamber), to help determine sums like the premium payable for a freehold interest.
These reports are prepared as Expert Witness Reports and must adhere to specific procedural rules, such as Rule 19 of the Tribunal Procedure (First-tier Tribunal)(Property Chamber) Rules 2013. They usually include a statement of truth and declarations, confirming the expert's duty to the Tribunal and compliance with professional standards, like those set by the Royal Institution of Chartered Surveyors for surveyors acting as expert witnesses.
The content of a valuation report typically details the property's characteristics, such as its type (e.g., a two-bedroom mid-terrace house), accommodation layout, and external features. It also includes information about the leasehold title, such as the term of the lease and any ground rent payable. The report's primary purpose is to provide a reasoned valuation, which the Tribunal then considers when making its determination, for instance, calculating the premium for a freehold reversion.
📋 Requirements
- Prepared by an expert, often a surveyor.
- Prepared as an Expert Witness Report.
- Contains a statement of truth and declarations.
- Complies with relevant tribunal rules (e.g., Rule 19 of the Tribunal Procedure (First-tier Tribunal)(Property Chamber) Rules 2013).
- Adheres to professional practice statements (e.g., RICS Practice Statement for Expert Witnesses).
📝 Procedure
- An application is made to the Tribunal, requiring a valuation report.
- An expert, such as a surveyor, prepares the valuation report.
- The report details the property's characteristics and leasehold information.
- The report provides a valuation of the freehold interest or other relevant sum.
- The Tribunal considers the valuation report as evidence to determine the premium or value.
💡 Examples
- A valuation report was submitted to the First-tier Tribunal to help determine the premium payable for the freehold interest of a two-bedroom mid-terrace house.
- An expert's valuation report, dated 24 February 2020, valued a freehold interest at a nominal sum of £40, which the Tribunal then considered.
- A valuation report for a two-storey house with loft accommodation detailed its construction, planning history, and proximity to local amenities to support its valuation.
- The Tribunal received a valuation report prepared by a named surveyor, which included a statement of truth as required for expert witness reports.
📚 Legal basis
- Tribunal Procedure (First-tier Tribunal)(Property Chamber) Rules 2013
❓ Frequently asked questions
Who prepares a valuation report?
A valuation report is typically prepared by a qualified expert, often a surveyor, who acts as an expert witness in legal proceedings.
Why is a valuation report needed?
It is needed to provide an independent assessment of a property's value, which tribunals use to determine sums like the premium for a freehold interest or other property-related payments.
What information does a valuation report contain?
It usually includes details about the property's physical characteristics, its leasehold title information (like lease term and ground rent), and the expert's determined value for the relevant interest.
Does a valuation report need to follow specific rules?
Yes, when used in tribunals, it must comply with procedural rules, such as Rule 19 of the Tribunal Procedure (First-tier Tribunal)(Property Chamber) Rules 2013, and professional standards for expert witnesses.
What is the 'statement of truth' in a valuation report?
The statement of truth is a declaration by the expert confirming that the facts stated in the report are true and that they understand their duty to the Tribunal as an expert witness.
Can a valuation report be submitted without an inspection of the property?
While an inspection is common, some reports, as seen in tribunal cases, may be submitted without a physical inspection of the property, though this would typically be noted within the report.