Professional Services News

Typically, a Royal Institution of Chartered Surveyors (RICS) Registered Valuer valuation report will arise from the need for Bank finance, but there are other circumstances in which valuations are required. These typically include for accounts purposes or pension valuations.

Here, at FHP Property Consultants, we are well versed in the requirements of Red Book valuations in accordance with RICS practice, which are required for SIPP fund valuations. We have considerable experience in valuing properties around the East Midlands for such purposes and it is important to note a few issues.

A property must be inspected by a valuer who is a Registered Valuer in accordance with the RICS and the report completed in accordance with the current RICS Professional Standards (The Red Book). The property will need to be revalued on a regular basis, every 5 years, to ensure that the annual valuation of your SIPP fund is accurate. Also, a valuation will be required if you wish to take benefits from your SIPP. Valuations are then typically required every 3 years, and every year when a capped draw-down income is being paid after the age of 75. Your Independent Financial Advisor can advise you further in this matter.

Valuation reports are addressed to the SIPP Trustee and must cover a number of points as per the Red Book instructions, which briefly include Description, Condition and Recommendations (whether a full structural survey, environmental risk, contamination or asbestos survey is required). The report will also need to include Photographs and OS Plan and potentially a copy of the Environmental Screening Report. The report of course has to state the Market Value, as well as the recommended current Market Rent based on standard lease terms. For the purposes of the SIPP Trustee, the report must be less than 12 months old.

We, at FHP Property Consultants, are happy to discuss your needs should you require a property valuation for your SIPP fund and have considerable expertise in the local market. We have a number of Registered Valuers who are experienced in this matter and have the pre-requisite qualifications to undertake the valuation.

Should you require any further information, please do not hesitate to contact Jon Marriott on 01332 224858 or jon.marriott@fhp.co.uk.

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