RICS Residential Road Show 2011
Held on 27 June 2011 in London
Revisions to the RICS Redbook, which details valuation standards to be adopted by all RICS registered valuers, were reviewed in detail.
“To a defence solicitor, there is nothing more pleasing than a legible and complete set of site notes in a clearly expressed methodology.” Quote: Louisa Robins – Robin Simon LLP – RICS Residential Journal, March 2011.
Valuations need to reflect changing market conditions even though the market may be slow but yet competitive. At the same time, valuations need to meet the expectations of clients, the Courts and RICS.
Valuers cannot value for “future risk” when the future is uncertain. The presentation of comparable evidence is key to well reasoned disucssion to arrive at a safe valuation.
A thorough review of Scullion v Bank of Scotland plc (t/a Colleys), which was reported in the Estates Gazette on 25 June 2011, was key to highlighting these latest and most modern approaches.
Essentially, in this case the Appellant (the purchaser) attempted to rely on a valuation carried out on behalf of the mortgagee, which was incorrect. It was held that even though this valuation had faults, the purchaser, who was buying the property as a buy-to-let investment, should have obtained his own valuation advice on rental and capital values. There was no duty of care between the valuer for the mortgagee and the purchaser.