As Chartered Surveyors we are regularly instructed by Banks to provide valuations for loan purposes. In today’s complex business world a lot of skill is required to provide a safe approach to a valuation. Richardsons are careful and systematic in applying valuation methods which are completely appropriate for the circumstances in which the valuation has to be made.
Purchasers sometimes want reassurance on the price they are asked to pay for a property. This will be a valuation for purchase and the valuer will need to consider the special needs and requirements of his client. This is different to a valuation for sale where the valuer has to consider the entire market.
Hotels are usually valued by the profits method based on the performance of the business. The valuation will be based on the capitalisation of net profit and the accounts will be used for this. The valuation can also take a price per room approach, but this needs comparable evidence which is sometimes difficult to obtain.
Office buildings are invariably valued by the investment method, value is determined by the capitalisation of the rental income.
Shops, with few exceptions, whether freehold or leasehold, owner occupied or held for investment, are also valued on an “investment” basis by the capitalisation of rents and rental values.
Generally all assessments are made on the basis of total loss or of such substantial damage that the entire building will require demolition and rebuilding. The valuer looks to applying the RICS Building Cost Information Service (BCIS) and where necessary in-house costings for similar projects. This type of valuation is normally undertaken by David Richardson (BSc) Hons MRICS who is our in-house building surveyor.
The method we most frequently use for appraising the viability of development schemes is the residual valuation. The three main purposes are to calculate the maximum value of the development site, to calculate the expected profit, and to monitor a cost ceiling for construction during the development period. A discounted cash flow approach with our valuation software is sometimes used. Richardsons have invested in state of the art valuation software and we can provide financial appraisal with different cashflow scenarios.
An investment portfolio is the complete list of investments held by a particular investment fund. Josiane Spencer (BSc) Hons MRICS and Chris Spencer (BSc) Hons MRICS are both members of the Gibraltar Funds and Investments Association and are licenced by the FSA to act as fund Directors. We will be happy to discuss your fund needs in Gibraltar. Our software gives us the capability of measuring performance when dealing with large property portfolio spreads. www.gfia.gi
Normally land values are linked with the development appraisal of a scheme. However values within residential estates e.g. building plots can be calculated by the comparative method. For example plots in nearby Sotogrande are usually valued on this basis.
Richardsons Chartered Surveyors can provide valuations for inclusion in financial statements of entities that have adopted International Financial Reporting Standards (IFRS) or UK Generally Accepted Accounting Principles (GAAP) financial reporting standards. We will also be happy to provide valuations for entities which have adopted other financial reporting standards. RICS also adopts the International Valuation Standards (IVS) 2011 and considers that valuations complying with the Red Book are also compliant with IVS. This is particularly relevant where valuations are provided for inclusion in financial statements that comply with (IFRS). The adoption of IVS in the Red Book provides an implementation or practice framework for the application of IVS globally, ensuring that RICS members follow consistent methodologies throughout the world. We can normally provide a fee proposal within 24 to 48 hours after inspecting a property.
Our in-house valuers are Chartered Surveyors and have a thorough understanding of the provisions and guidelines detailed within the The RICS Valuation - Professional Standards the (“Red Book”) and can prepare valuation reports in accordance with these Standards. The Red Book now incorporates and is fully compliant with the International Valuation Standards (IVS).
Accurate valuation requires methodical collection, collation and application of data. Our extensive knowledge of the Gibraltar market, together with our detailed database of transactional evidence gained from our experience working within the local market over the past 30 years, enables us to ensure that valuation advice provided is always accurate, detailed and up-to-date.
The fundamental pillars which underpin our valuation work include;