VALUATIONS

Valuation of commercial property may be required for many purposes, typically for loan security (mortgage); market sale, purchase or leasing; company accounts (existing use asset); taxation (capital gains and probate); insurance, etc . A Valuation is specific for purpose – there is no such thing as a ‘cover all’ valuation for a single property.

The Royal Institution of Chartered Surveyors (RICS) publishes a guide to ‘best practice’ of valuations undertaken by its members – the ‘Red Book’ (March09 revn) - in order to ensure high standards of integrity and clarity. As a company regulated by the RICS, Stephen Tonkin Limited is required to comply with these guidelines when undertaking valuation services.

Underlying the valuation is sound market knowledge. Since my property sector specialism is based on ‘employment uses’, my valuation services tend to deal with premises and land used for industrial, warehousing and light industrial / B1 office purposes. However, regeneration of older industrial land has wide ranging potential for other uses which often requires in depth research of other and emerging property sectors as part of the valuation process.

Assessment and presentation of comparable market evidence is something which every valuation should take account of. After all most valuations are effectively hypothetical and only, if ever, put to test at a later date. In my early years as a trainee surveyor I was constantly reminded by my mentors that “valuation is an art, not a science”. Modern litigation, with the benefit of hindsight, now challenges this premise on a regular basis.  

Before undertaking a valuation it is essential to gain a full understanding of the client’s need for and therefore the nature of the valuation report. As with my other services, this understanding is best reached by an initial meeting for which there is no charge or obligation.