Red Book compliance ensures:

• Professional standards - Valuations follow rigorous methodology
• Independence and objectivity - Valuers remain impartial
• Transparency - Assumptions and limitations clearly stated
• Consistent approach - Comparable valuations across different valuers
• Legal defensibility - Accepted by courts and tribunals
• Professional liability - Valuers carry mandatory PI insurance

Compliant valuations must include:

• Terms of engagement - Clear instruction and scope
• Basis of valuation - Market Value, Market Rent, etc.
• Purpose of valuation - Why valuation is needed
• Property inspection details - Extent of inspection
• Valuation date - Specific date property valued
• Assumptions and special assumptions - Clearly stated
• Limitations - Any restrictions on inspection
• Market commentary - Context and market conditions
• Comparables - Evidence supporting valuation
• Valuation reasoning - How figure was reached
• Valuer declaration - Independence and competence

When Needed: Establishing property value at acquisition date or disposal for CGT calculations.

Common Uses: Second homes, buy-to-let properties, inherited properties being sold, business premises

HMRC Requirements: Must be Red Book compliant, from RICS valuer, with clear basis and methodology

Cost: £400-£700 residential, £800-£1,500 commercial

Tip: Obtain valuation at acquisition to establish base cost for future CGT calculations

When Needed: Divorce proceedings requiring fair division of property assets

Approach: Often single joint expert appointed by both parties, or each party instructs own valuer

Court Requirements: Must be Red Book compliant, valuer may need to provide expert witness testimony

Cost: £500-£1,000 for single property, more if expert witness attendance required

Timeline: Courts often have tight timescales - 5-10 working days typical

When Needed: Calculating premium for residential lease extensions (leasehold enfranchisement)

Calculation: Based on diminution in landlord's interest plus marriage value (if under 80 years)

Requirements: Must be Red Book compliant as often disputed and goes to tribunal

Cost: £600-£1,200 depending on complexity

Common in: Milton Keynes apartment blocks, Bedford converted properties

Common Purposes: Lending, accounts, tax, lease renewals, rent reviews

Methodology: Investment method (yield × rent), comparable evidence, contractor's basis for specialized properties

Requirements: Red Book essential for all formal purposes

Cost: £1,000-£5,000+ depending on size, complexity, and purpose

Timeline: 7-14 days typical for commercial due to research requirements

Typically 3-6 months depending on market conditions and purpose. Rapidly changing markets may require shorter validity. HMRC and courts generally accept valuations dated within 3 months. For stable markets and non-urgent purposes, 6 months is often acceptable.

No. Online valuations (Zoopla, Rightmove, etc.) are computer-generated estimates, not professional valuations. HMRC, courts, and other official bodies will reject them. You must have a Red Book compliant valuation from an RICS chartered valuer for formal purposes.

Discuss concerns with your valuer - they can explain methodology and comparables used. If you still disagree, you can instruct a second valuer for a different opinion. However, remember valuations are professional opinions based on evidence, not desired figures. If valuations vary significantly, averaging or mediation may be appropriate.

Yes, for Inheritance Tax purposes you need property valued at date of death. HMRC requires Red Book compliant valuations. For estates over IHT threshold (£325,000 individual, £500,000 with residence nil-rate band), formal RICS valuation is essential. Even below threshold, proper valuation protects executors from future challenges.