Valuation purposes
When do you need a commercial valuation?
Loan security
RICS Red Book valuations prepared for lenders in connection with commercial mortgages, refinancing, or development finance.
Acquisition & disposal
Independent market valuations to inform purchase or sale decisions, ensuring you transact at the right price.
Accounts & financial reporting
Valuations prepared to RICS standards for inclusion in company accounts, balance sheets, or fund reporting.
Landlord & tenant
Valuations in connection with rent reviews, lease renewals, lease extensions, or dilapidations negotiations.
Rating & taxation
Valuations for business rates appeals, capital gains tax, inheritance tax, and other taxation purposes.
Dispute & litigation
Expert witness valuations and reports for court proceedings, arbitration, and other dispute resolution processes.
Interests we value
Freehold and leasehold valuations
The interest you hold shapes how the valuation is approached. We value both, and the right basis depends on whether you own the property outright or hold it under a lease.
Freehold
Valuing the freehold interest
A freehold valuation assesses the value of the asset owned outright. Where the building is let, we value it on an investment basis: capitalising the rental income at an appropriate yield and reflecting the strength of the tenant's covenant, the unexpired lease term, and the reversionary position once current leases end.
Where the property is vacant or owner-occupied, we assess vacant possession value from comparable evidence. Freehold valuations are the usual basis for a sale, purchase, loan security, or company accounts.
Leasehold
Valuing a leasehold interest
A leasehold valuation assesses the value of a tenant's interest in a lease, which turns on the relationship between the rent you pay and the open market rent. A lease at a rent below market value carries a positive premium (profit rent); one at or above market value may have little or negative value.
We reflect the unexpired term, the rent review pattern, and any restrictive user, alienation, or repairing obligations, along with marriage value where a tenant is well placed to acquire the freehold. Leasehold valuations commonly support assignments, lease surrenders, premium negotiations, and accounts.
Common questions
Frequently asked questions
RICS Red Book · Registered Valuer