There are many practical reasons why a commercial property owner – be they a landlord, holding company or owner occupier – might need to have a property valued. These usually relate to a specific transaction – for example, if you’re obtaining a loan, mortgage lenders will want to ensure the amount they’re lending is justifiable.
But outside of this, there are several other benefits of obtaining an up to date Valuation on a commercial property. Here we look at three:
Have an accurate record
As well as valuations for purchases and sales, Chartered Surveyors are also able to provide valuations for reinstatement purposes. The rising cost of materials in recent times, as well as a shortage of labour, are leading to increased costs of building work. Without an up to date reinstatement valuation, landlords and commercial property owners may find themselves under-insured and therefore out of pocket in the event of serious damage.
Inform decision making
Tenants in commercial properties can come and go and, at some stage, it may be that a Landlord/Investor will consider selling a property. Or you may wish to transfer the property into a Pension Fund, and require it to be valued. Rather than relying on an outdated purchase price, or comparing to other properties nearby, which may not have the same unique features of your property, a Valuation will provide the facts as to what the current value of the property is. This can help landlords to plan how they may sell off their stock to make best use of tax allowances, etc.
Be prepared for any eventuality
We never know what the future may hold and having knowledge at our hands can often put us in a more favourable position, being able to act quickly upon opportunities that present themselves. If you are a landlord of a commercial property, you may be approached by your tenant to buy the building. Similarly, if you are an owner-occupier, a competitor may want to buy your business. Rather than having to wait for a valuation to take place, which can result in a loss of momentum, you can be ready to respond and have a good idea of what price you would be willing to accept.
Commercial property valuations take into consideration many more factors than residential property valuations. Lea Hough’s Valuation surveying team have a great deal of experience in valuing and surveying commercial properties, proving our commercial clients with a greater level of insight to make informed business decisions. For more information, or to obtain a quote, please get in touch.
