One of the key areas of Rostons’ business as Chartered Surveyors and Agricultural Valuers is valuation of land and property and director Tony Rimmer believes businesses must be more aware of their value.
He said: “Generally people believe valuations are only necessary in connection with proposed sales or compulsory purchase for the loss of land, but actually valuations are done for a huge range of issues.
“A key reason is for the ability to secure a loan – every bank or other lender will need an accurate valuation.
“As all Rostons valuers are RICS accredited, all our valuations are done in accordance with the RICS Red Book and, as with so much in the world bureaucracy, the over-riding issue is ensuring that due diligence takes place. Because of this, valuations can often be more expensive than clients initially anticipate but it is essential.”
An increasing number of valuations are being done for tax purposes. In the past this has generally been for Probate following the death of one of the land owners. Now though Capital Gains Tax valuations are required when an asset is being transferred to the next generation or a third party and these, as they are being used in connection with tax, have to be done in accordance with the RICS Red Book.
Other areas where Rostons is seeing an increase in instructions is the unfortunate area of valuations in respect of disputes – be that disputes between partners when a partnership agreement is being terminated, or in divorce proceedings.
These valuations not only have to be done in accordance with the RICS Red Book but, if it is likely that the dispute will end up in court, they need to be done in accordance with Expert Witness guidance as well. This is now mandatory due to guidance laid down by the legal bodies following the Woolf reforms of 1999.
If you need a valuation for any of these purposes or simply want to know on an informal basis what your farm is worth, then please contact the Rostons Team.