Also known as a “backdated” or “historical valuation,” a retrospective property valuation offers an informed estimate of what a property was worth at an earlier date. Whether for probate, matrimonial disputes, or capital gains tax calculations, getting it right at a particular point in time can be difficult when it comes to detailed valuation figures.
How is a Retrospective Valuation Carried Out?
Obtaining Comprehensive Particulars: the process starts by obtaining a complete set of particulars relating to the property in question. These will include, for example, its size, condition, location and any significant features. Any changes or improvements to the property since the retrospective date will be analysed with care. The valuer will use special software to check historical data and compare to the present values.
Reasons for Retrospective Valuation
Ultimately, there are numerous reasons why a retrospective property valuation is valuable. It may be required, for instance, to ascertain the value of a property for the purposes of Capital Gains Tax (CGT). Alternatively, a retrospective valuation report can be used to help resolve disputes. Regardless, the document created by Chartered Surveyors who are experienced in property valuation must be a definitive appraisal of the value of your property at a certain date in the past. The following are a few examples where a retrospective valuation becomes indispensable:
Matrimonial Disputes: accurate property valuation required to decide on the division of assets during divorce.
Probate: establish the value of the estate at the date of death including any property for inheritance tax purposes.
Capital Gains Tax: to work out the capital gains tax chargeable on disposal of a property, you need to know its original value when you bought it.
Lending: it could be required by a lender, such as when the property is security for a mortgage. They might be useful when you are trying to bargain down a price on a right-to-buy scheme or deciding whether or not it is necessary to register for Annual Tax on Enveloped Dwellings (ATED).
Retrospective Valuations in Legal Disputes
In instances where the sale price of a property might be in dispute or where the value of a property has substantially increased since purchase, retrospective valuations can also be invaluable in settling disputes. It is an essential tool if you are a UK resident and need to ascertain the value of your property for tax or disposal purposes or are an investor wanting to adjust your investment portfolio.
Estate Agent Valuations v Retrospective Valuation by a Chartered Surveyor
When it comes to a retrospective valuation, it’s absolutely crucial that you select the right team of expert RICS registered valuers to undertake this particular type of valuation. Although estate agents may suggest a figure, a retrospective valuation report from a chartered surveyor will retroactively place a value on a property back to a particular date in the past, producing a clear, precise and detailed report that is acceptable to HMRC.
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Whether you need a retrospective valuation for CGT, portfolio building, legal dispute, or just want to know the value of your property at some time in the past, they can prove incredibly useful. These reports are indispensable in helping you negotiate UK tax law, achieve better terms in a dispute, or meet a lender’s condition for a loan.
