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Hi, I am doing some background work regarding RICS valuers further to my post yesterday.My findings so far worry me hugely, the process is so open to abuse.Does anyone know the guideline for a MUB valuation? I believe that this is an area that could the one open to the most abuse and I can see trouble ahead for those who are carrying out conversions.
Thanks in anticipation.
RICS does have rules & guidelines, I think you will find the detail you require in the "RICS Red Book".
RICS Valuation Professional Standards (the 'Red Book' contains mandatory rules, best practice guidance and related commentary for all members.
It's not so black & white though, its all rather subjective and more often based on local comparable properties.
I'm not sure that this will help you with MUB Valuation, as that's more of a commercial. I think the Red Book is for residential (as in a typical home).Id presume a 2 floor MUB would be valued as 2 leasehold & freehold units (just guessing).
Hope this helps but we do a lot of Multi-Unit Block Mortgages at Bespoke Finance for Property Investors - we dont see anything that is "open to abuse" here. Perhaps i'm not following your logic
_________________________________________________________________________My posts are not financial advice but often me rambling - passing time on a coffee break.Our team at Bespoke Finance offers Limited Company Buy-to-Let and Cheap Life Insurance._________________________________________________________________________
Although I do not do valuations myself, I'm quite familiar with the process. Adam is correct in that valuations are normally carried out to Red Book rules, but individual lenders may have specific requirements.
Of course, there are many types of valuation, depending on the specific purpose, but valuation of leasehold property would take into account the length of the lease and specific onerous conditions.
For someone carrying out a conversion, a valuation can be based on the nature of the property after conversion, but, of course, that assumes the conversion is carried out according to the planned intention.
All valuations are based on comparable evidence. But the definition of a valuation is the amount that someone will pay in an arm's-length open transaction. So valuation can only ever be an estimation and, in the majority of cases, is based on specific evidence, knowledge and experience. But, if someone is prepared to pay a higher price than that, by its very nature, establishes a higher valuation.
There will always be an element of rogue valuers, as there is in any industry, but, for the most part I think that valuers do their very best to achieve an accurate result within the accepted tolerances.
I'm glad I don't valuation myself as I think that it will always be a challenging function and that someone will always tell you you're wrong!