RICS Property Valuations Explained: When Do You Need One & What Does It Cover?

Estate agents give you a free valuation — so why would you ever pay for one? It's a fair question, and the answer lies in the difference between a market appraisal and a formal RICS valuation. The two are very different things, and there are many situations where only the formal RICS version will do.

I'm Emma Davies, a property valuer and surveyor at Camden Surveyors. I've been producing RICS Red Book valuations for properties across Camden and Central London for many years. In this guide, I'll explain clearly what a formal RICS property valuation is, when you need one (and when you don't), and what ours involve.

What is a RICS Property Valuation?

A RICS property valuation is a formal, written assessment of a property's market value prepared by a qualified RICS member in accordance with the RICS Valuation – Global Standards (commonly known as the "Red Book"). The Red Book sets out strict methodological requirements for how valuations must be conducted and reported.

The key characteristics of a RICS valuation are:

• It is prepared by a qualified RICS member with the relevant competencies
• It follows a defined methodology based on comparable market evidence
• It is a formal, signed document that the valuer stands behind professionally and legally
• It can be relied upon by third parties (lenders, HMRC, courts) who did not commission it

RICS Valuation vs Estate Agent Appraisal

The free valuation your estate agent offers is technically a market appraisal — an estimate of what they think the property might sell for in the current market. Estate agents are incentivised to value properties attractively to win instructions, and their appraisals are not formal documents that can be relied upon by third parties.

A RICS valuation, by contrast, is prepared to a professional standard, is backed by clear comparable evidence, and can be used in legal and financial proceedings. For many purposes — including probate, divorce, tax, and mortgage applications — it's the only type of valuation that will be accepted.

When You Need a Formal RICS Valuation

There are several specific circumstances where a formal RICS valuation is required or strongly advisable:

Probate Valuations

When someone dies and leaves property in their estate, HMRC requires a formal valuation of that property for Inheritance Tax (IHT) purposes. The valuation date is the date of death, and the valuation must reflect the open market value at that date.

Probate valuations for Camden properties require careful analysis of the market conditions at the relevant date and comparable evidence from that period. We have extensive experience in producing IHT valuations for HMRC and can liaise directly with solicitors and executors to ensure the process runs smoothly.

Matrimonial & Divorce Valuations

When a couple separates and there is a property to divide, an independent RICS valuation is almost always required by the family court. The valuation must be genuinely impartial — which rules out using the same surveyor as one of the parties, or using a surveyor who has a previous relationship with either party.

We're experienced in producing matrimonial valuations for Camden properties, and we understand the importance of providing an objective, well-evidenced figure that will withstand scrutiny in court proceedings.

Lease Extension Valuations

If you own a leasehold flat and want to extend your lease — as thousands of Camden flat owners do each year — you'll almost certainly need a formal RICS valuation. The premium you pay to extend the lease is calculated using a statutory formula, and getting the inputs to that formula right requires detailed market evidence and valuation expertise.

Lease extension valuations are one of our specialisms. The Camden flat market is one we know extremely well, and we have a strong track record of achieving favourable premiums for our clients — or defending freeholders' positions where we act for them.

Capital Gains Tax (CGT) Valuations

If you sell a property that you don't live in as your main home, you may be liable for Capital Gains Tax on the profit. In some circumstances — particularly where you've owned the property for a long time — HMRC may question the base cost you use for the CGT calculation, and a formal historical valuation may be required.

We can prepare historical valuations for Camden properties for CGT purposes, researching the relevant comparable evidence from the appropriate date.

Help to Buy and Shared Ownership Valuations

If you bought your property using the government's Help to Buy scheme and want to sell or remortgage, you'll need a formal RICS valuation to establish the current market value — which determines the repayment owed to Homes England. Similarly, if you own a shared ownership property and want to staircase (buy a larger share), a RICS valuation is required to establish the price.