RICS Knowledgebase

The valuation of leaseholds for secured lending (sometimes referred to as a mortgage valuation) is a specialist matter, for which RICS would recommend taking the professional advice of an RICS regulated member as well as appropriate legal advice from a specialist solicitor. This may be in addition to the advice sought by the lender. RICS does have leasehold valuation guidance in the form of Valuation of residential leasehold properties for secured lending purposes and it is planned to update this following implementation Leasehold reforms.

As it states on this page: https://www.rics.org/profession-standards/rics-standards-and-guidance/sector-standards/valuation-standards/leasehold-reform-in-england-and-wales 

 ‘leasehold valuations are a specialist matter, you are reminded to be aware of the latest market and legal position prior to undertaking work related to this area.'

As these valuations are so specialist it is important to highlight rule 2 of the Rules of conduct - if you feel you are not able to do this the instruction should be declined and prior to proceeding reflect and consider whether you are appropriately qualified and competent to undertake the valuation

RICS members can also make use of myRICS community to liaise with others on the matter https://community.rics.org/home/memberhome 

Members of the public can make use of Lease Advice including Lease extension calculator for flats - The Leasehold Advisory Service (lease-advice.org).  There are also Leasehold Valuation Tribunals if a leaseholder disagrees with with a valuation.

Subscribers to isurv can also make use of the commentaries and studies on leasehold valuation for example Intermediate landlords – intermediate leasehold interests (ILIs): Schedule 13, Part III | Flats: new lease claims: valuation issues | isurv 

For Commercial Leaseholds there is this training course available https://www.rics.org/training-events/online-training/on-demand/leasehold-valuation-key-principles

#Valuation

#Leasehold