Alternative reasons for Valuations and Surveys – Part 3
Property surveys and valuations are largely associated with the sale or purchase of a building. However, there are several other reasons that clients instruct us to carry out Building Surveys and Valuation reports on their behalf. In fact, the valuation of buildings stands at the heart of all property decision-making. We’ve looked at some of these reasons in part 1 and part 2 of this article. In this final part, we’ll turn our attention to look at why you might need a Valuation Report for commercial reasons.
Where a commercial property is owned by a business or its directors, a change in company ownership may also involve the sale of the property. We are regularly instructed to provide an impartial Valuation of commercial property in the instance of a management buy-out / company sale.
Rent reviews / lease negotiations
Many commercial landlords look at obtain a minimum rental yield on their rental properties, be they residential or commercial properties. Increases in demand or property prices therefore present an opportunity to implement a rental increase. A Valuation Report arms landlords with a current picture of the rental and capital valuation of a property, therefore giving grounds to support a rental review when their lease permits.
Diminution in value (for dilapidations claims)
Where a commercial property is leased, tenants are usually required to agree to certain covenants, one of which relates to the state of repair a property must be in when they vacate or the lease comes to an end. If tenants fail to leave the property as they found it, a landlord can serve a dilapidation claim. In order to evidence their claim, a professional Valuation Report is often required. Lea Hough act on behalf of landlords to prepare reports that can be used to show diminution in value in such dilapidations claims, and also advise outgoing tenants in such situations too.
Litigation proceedings/Expert Witness Reports
Where a property forms the basis of litigation proceedings, perhaps where there has been a contractual dispute or professional negligence on behalf of one party or another, Valuation Reports often form an integral part of the claim. Lea Hough are able to provide Valuation Reports or Expert Witness Reports to evidence or dispute loss of value.
Property is often one of the most valuable things we own and decision made regarding company buildings can make a significant difference to whether a business makes or loses money. To ensure you make the correct decision, it’s essential that you are fully informed by professional advisers.
Lea Hough is a Chartered firm of surveyors and as such, must work under the strict guidance and ethics of the RICS and the Registered Valuer Scheme. Our team has extensive experience operating in the Lancashire property market and as such, are very well placed to advise commercial clients.
To instruct our services for a property valuation for any reason, please contact us.BACK TO NEWS