Property valuations are one of the most misunderstood areas of the surveying profession. Most homeowners associate valuations with buying or selling – but there are actually many situations where a formal RICS valuation is required, and where only an RICS Registered Valuer can provide the report you need.
I'm Robert Hayward, Senior Surveyor and RICS Registered Valuer at Surrey Surveyor. In this guide, I'll walk you through every type of RICS valuation, explain when you need one, and help you understand what the process involves.
What Is an RICS Valuation?
An RICS valuation is a formal assessment of the market value (or other valuation basis) of a property, carried out by an RICS Registered Valuer in accordance with the RICS Valuation – Global Standards (the "Red Book"). RICS Registered Valuers are specifically accredited to produce valuations that can be relied upon for legal, financial and regulatory purposes.
This is different from an estate agent's market appraisal. An estate agent's valuation is an opinion, not a formal RICS-regulated assessment, and it cannot be relied upon for lending, legal or tax purposes.
Types of RICS Valuation
1. Mortgage Valuation (Lending Purposes)
When you apply for a mortgage, the lender commissions their own valuation to confirm the property is worth the amount you're borrowing. However, you can also commission your own independent RICS valuation if you want a second opinion or if the lender's valuation appears inconsistent with the sale price.
An independent mortgage valuation is also useful if you're challenging a surveyor's down-valuation or if you're purchasing a property through an unconventional route (private sale, auction, etc.).
2. Help to Buy Valuation
If you have an Equity Loan under the Help to Buy scheme and want to repay all or part of it, you need an RICS valuation to establish the current market value of your home. The loan repayment is calculated as a percentage of that value, so an accurate, independent valuation is essential to ensure you pay the correct amount.
3. Shared Ownership Valuation
If you own a shared ownership property and wish to "staircase" (buy additional shares) or sell, an RICS valuation is typically required by the housing association to establish the current market value.
4. Probate and Estate Valuation
When someone dies and their estate includes property, an RICS valuation is needed to establish the value for probate purposes (and to calculate any Inheritance Tax liability). This valuation must represent the open market value at the date of death.
5. Matrimonial and Divorce Valuation
Where a property forms part of a financial settlement in divorce or separation proceedings, an RICS valuation provides an independent, impartial assessment of value that both parties – and the court – can rely on. Our valuers are experienced in providing valuations for matrimonial purposes and understand the sensitivities involved.
6. Capital Gains Tax Valuation
If you've sold a property and need to calculate a Capital Gains Tax liability, HMRC may accept an RICS valuation as the basis for the calculation. This is particularly relevant where the property has been owned for many years and a historical valuation is needed.
7. Insurance Reinstatement Valuation
The insurance reinstatement figure is the amount it would cost to rebuild the property from scratch if it were completely destroyed. This is not the same as the market value and can be significantly different in both directions. Our RICS valuers provide accurate reinstatement cost assessments for buildings insurance purposes.
Important Distinction
Market value (what a buyer would pay for the property on the open market) and reinstatement cost (what it would cost to rebuild) are completely different figures. Many homeowners are significantly under- or over-insured because they're using market value as their insurance figure. An accurate reinstatement cost assessment is well worth commissioning, particularly for older, larger or unusual properties.
What Does an RICS Valuation Involve?
An RICS valuation involves:
- An inspection of the property (internal and external)
- Research into comparable sales evidence in the local area
- Application of valuation methodology in accordance with Red Book standards
- Production of a formal written valuation report
The inspection typically takes 1–2 hours, and the written report is usually delivered within 3–5 working days.
How Much Does an RICS Valuation Cost in Surrey?
Valuation fees vary depending on the type of valuation, the size and complexity of the property, and the purpose. As a rough guide for Surrey properties:
- Mortgage/lending valuation: £300–£500
- Help to Buy valuation: £250–£450
- Probate valuation: £350–£600
- Matrimonial valuation: £400–£700+
- Reinstatement cost assessment: £250–£500
We always provide a fixed fee quote upfront. Contact us with details of the property and the valuation purpose and we'll confirm the cost before you commit to anything.
Frequently Asked Questions
No. Formal RICS valuations can only be produced by RICS Registered Valuers – surveyors who have undergone specific additional accreditation. Not all RICS members are Registered Valuers. At Surrey Surveyor, our Senior Surveyor Robert Hayward is an RICS Registered Valuer.
Price is what a buyer actually paid for a property in a specific transaction. Market value is the RICS definition: "The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm's length transaction..." Sometimes price and market value are the same. Sometimes they're not – particularly in off-market transactions, estate sales, or where a buyer has paid a premium for personal reasons.
Yes – most Help to Buy providers require an RICS valuation to be no more than 3 months old at the point of staircasing. Contact us well in advance of your planned staircasing date to ensure the valuation is completed in time.
Yes. If your mortgage lender has valued the property below the agreed purchase price, you can commission an independent RICS valuation and submit it as part of a formal challenge. Not all lenders will overturn a down-valuation, but having an independent professional assessment gives you the strongest possible basis for the challenge.
We can typically arrange an inspection within 3–7 working days and deliver the written report within a further 3–5 working days. If you have an urgent deadline, let us know and we'll do our best to accommodate you.