crestadmin, Author at Crest Chartered Surveyors

What Is a RICS Valuation? Everything You Need to Know

Posted on April 4, 2025April 4, 2025 by crestadmin

When buying or selling property, especially when a mortgage is involved, understanding its true value is essential. This is often where a RICS valuation is required as an accurate, independent assessment of a property’s worth.

A RICS valuation is a professional assessment of a property’s value. It’s conducted by a RICS-registered surveyor and used for mortgages, financial planning or property transactions to ensure sound investment decisions.

But what exactly does a RICS valuation involve? How long does it take? And how much does it cost? If your valuation expires, what happens next? Read on to discover everything you need to know about RICS valuations, whether you need a survey, what to expect from the process, and when a valuation is legally required.

What Is a RICS Valuation?

A RICS valuation is a detailed and independent assessment of a property’s value. RICS-registered surveyors will conduct the valuation in accordance with RICS Red Book guidelines. These guidelines cover things such as the property’s size, condition and location.

Importantly, there is no conflict of interest because RICS surveyors don’t earn commission from their valuation. As such, a RICS valuation is required by lenders prior to mortgage approval. They can also be required to determine the appropriate level of insurance for a property.

When Do You Need a RICS Valuation?

The most common reason for a RICS valuation is that it’s required by a mortgage provider. Independent assessments of value are used by banks to make sound investment decisions. But this isn’t the only case you might need a RICS valuation. Scenarios where you might need the opinion of a surveyor include:

Inheritance Tax Valuations – HMRC requires a professional valuation to assess an estate’s total worth for inheritance tax purposes.
Capital Gains Tax Purposes – When selling property that has increased in value, a RICS valuation may be needed to calculate capital gains tax owed.
Divorce and Legal Settlements – A RICS valuation is often needed to divide property assets fairly.
Business Valuations – For businesses that own property, a RICS valuation is required for accounting, auditing or tax purposes.
Development and Planning Applications – A RICS valuation can provide a reliable assessment of the property’s worth and future value.

What Does a RICS Valuation Involve?

A RICS valuation involves a thorough assessment of a property’s value, as judged according to a RICS surveyor’s extensive training and experience. As such, it covers several key areas:

Construction and Condition

A property’s physical condition is a big part of its valuation. After all, a property needing major repairs is worth a lot less to prospective buyers. Surveyors look at how well the property was built and maintained. Modern, energy-saving features could also result in a higher valuation.

Location & Amenities

When it comes to buying a property, location is (nearly) everything. This is often a case of how close it is to local schools and public transportation. General trends in an area’s desirability can also be a factor in the valuation—if more people want to live in an area, the demand for housing increases.

Comparable Sales Data

Surveyors will also use comparative sales data to arrive at their valuation. This aspect of valuation involves checking the prices of recently sold homes to judge where a property falls within the overall market.

Economic Conditions

The broader economic climate plays a key role in RICS valuations. If conditions are unfavourable—including high interest rates, inflation or economic uncertainty—valuations decline with demand. Conversely, during periods of growth and high consumer confidence, there is often an increased demand for property. A RICS valuation captures these market trends to provide an accurate assessment of value.

Environmental Factors

The surrounding environment also plays a crucial role in determining property value. When providing a RICS valuation, surveyors will weigh up zoning regulations, green spaces, infrastructure, as well as general environmental risks—such as flooding—to reach their conclusion.

How Long Does a RICS Property Valuation Take?

For most residential properties, a RICS valuation takes less than a couple of hours to complete, depending on the size of the property. This process involves a thorough inspection of the house and its immediate surroundings. The resulting report will be delivered within a few working days.

Some buyers may opt for a more detailed RICS valuation, in which case it will take longer to conduct and deliver. In-depth surveys are typically required for older houses or those built with unconventional materials.

How Much Does a RICS Property Valuation Cost?

A RICS valuation varies according to property type, size, location and the complexity of the valuation. At Crest Chartered Surveyors, our RICS valuation prices start from:

£349 for up to a 2-bed property
£369 for a 3-bed property
£399 for a 4-bed property
£449 for a 5-bed property

All prices are inclusive of VAT.

For a more precise estimate, you can always use our house survey cost calculator.

What Happens if My RICS Valuation Expires?

A RICS property valuation is typically valid for three months from the report’s date. That said, factors like market and property conditions, as well as local regulations, can impact a report’s validity. If your RICS valuation expires before you can complete a transaction, you’ll need a new one.

In some cases, a new report can be a simple “desktop valuation” that extends the original valuation by another three months. Importantly, a desktop valuation must be issued by the same RICS surveyor, on the company’s headed paper, and provided in a non-editable format.

Get Your Valuation from a RICS-Registered Surveyor

In summary, a RICS valuation is an accurate and detailed assessment of a property’s worth. They help to ensure compliance in a wide variety of financial and legal scenarios. Whether you’re applying for a mortgage, settling a legal matter, or evaluating your tax liability, a RICS surveyor can help you get the valuation you need.

At Crest Chartered Surveyors, we offer a wide range of RICS surveys and valuations in London and the surrounding areas. Our experienced team will help you choose the right survey for your needs before conducting a thorough valuation. Contact us today for expert advice.

If you’re keen to learn more about our services, explore our latest blog posts for insights on property valuations:

What Was the 36-Month Rule for Capital Gains Tax in 2025?

Posted on April 1, 2025April 4, 2025 by crestadmin

Anyone selling a property should know that the old 36-month rule has been replaced by a 9-month exemption. This rule was in place to determine the amount of Capital Gains Tax that must be paid at the point of sale or transaction for a house or property within the UK. The 36-month exemption was first reduced to 18 months in 2014 and then to 9 months in April 2020. Today, homeowners can only claim CGT exemption for the final 9 months of ownership before selling.

Read about the new 9-month rule here.

But what was this rule, how was it implemented, and what do you need to know if you are buying and selling the same property within a 3-year window?

Our RICS-Accredited team here at Crest Surveyors are here to help you dispel any myths around the 36-Month Rule and its implications for Capital Gains Tax.

The 36-Month Rule for Capital Gains Tax was a UK law that previously determined tax liability on property sales. It allowed sellers to claim CGT exemption for the final 36 months of ownership, even if they had moved out. However, this was reduced to 18 months in 2014 and further to 9 months in 2020, which remains the rule today.

This general law is in place as it prevents short-term transaction benefits concerning taxation. The 36-Month Rule was therefore in place to ensure that taxation is fair for property sales, within a timeframe of 3 years.

Although the 36-Month Rule is still discussed, the current law only provides a 9-month exemption period for CGT.

Learn more about the updated 9-Month Rule here.

The 36-Month Rule for Capital Gains Tax

The 36-Month Rule for Capital Gains Tax was used to ensure fair taxation across properties sold or transferred within 3 years. Since 2014, the Government has made amendments to this time period, however, the term ‘36-Month Rule’ is still very much used in common parlance. As of January 2025, tax exemption from Capital Gains Tax only applies to a 9-month period.

But first, let’s clarify a few key terms here. For instance, what is Capital Gains Tax at all?

What is Capital Gains Tax?

Capital Gains Tax is money paid towards the government on the financial gains on capital, in this case, property. So, if you have purchased a property for £100,000, which is now worth £110,000 at the time of sale (or transfer, exchange, or disposal), your capital has gained a value of £10,000. Capital Gains Tax, in this sense, is a tax paid on the difference in the value of your property when you bought it, over the amount that you sold it for.

CGT is a tax paid on this gain in capital as a set percentage as stipulated by the government. This percentage is based on what capital you are paying the CGT on (in this case property), and the tax status of the individual paying. This is based on income and a number of other factors. If you earn more, you may be more liable to pay a higher percentage of tax on the amount gained across your assets.

The variables that are in play include:

Main Residence Exemption – If the property was your main home, CGT may not apply.
Income Tax Band – Basic rate taxpayers (income up to £50,270) pay 18% on property gains, while higher/additional rate taxpayers (income above £50,270) pay 24%.
Annual Exemption Allowance – Each person has a tax-free CGT allowance of £6,000 (2023/24).
Joint Ownership – Couples who jointly own a property can combine allowances to reduce taxable gains.
Private Residence Relief (PPR Relief) – The final 9 months of ownership are CGT-exempt for most homeowners. However, if the owner moved into a care home and did not rent out the property, they may still qualify for an extended 36-month exemption. This rule doesn’t apply for regular sellers, however.
Duration of Ownership – If you owned the property for a long period, only the portion of time it was not your main home is taxable.
Property Value & Cost Basis – You can deduct purchase price, legal fees, stamp duty, and capital improvements when calculating your gain.
Letting Relief – If you rented out your former main home, you may qualify for up to £40,000 in Letting Relief to reduce CGT.
Spouse or Civil Partner Transfers – Transfers between spouses/civil partners are tax-free, allowing you to split the gain for tax efficiency.

Read About the New 9-Month Rule

However, a break on this tax is applicable when you sell a property which was your only residence. This is known as Principal Private Residence Relief or PPR Relief. It is also worth noting that each individual has a £6000 tax-free amount, which doesn’t incur a tax.

You may only be liable for CGT when selling or disposing of a second home or buy-to-let property. As mentioned, if you are selling or otherwise disposing of your only property, you may not be liable at all for CGT and, therefore, exempt from the new 9-Month Rule altogether.

So, the amount of CGT you might pay is dependent on a few things, which we will explain further.

View our Capital Gains Tax Services.

Was The 36-Month Rule A Tax-Free Window for Sellers?

The 36-Month Rule was an extension of Principal Private Residence (PPR) Relief, which is designed to reduce or eliminate CGT liability for homeowners. This rule did allow sellers to claim full tax exemption for the last 36 months (3 years) of ownership, even if they did not live in the property during this period.

As mentioned, this period has since been reduced to a 9-month exemption period.

How Did the 36-Month Rule Work?

If the property was your main residence at any point during your ownership, then the last 36 months of ownership are automatically exempt from CGT.

This exemption applies even if you moved out before selling the property. If you rented out the property after moving out, you may still qualify for partial relief.

Who Benefits from the 36-Month Rule?

Before 2020, the 36-Month Rule helped homeowners who were selling their only home by allowing them to claim tax exemption for up to three years after moving out. However, since April 2020, this period has been reduced to just 9 months.

This rule was particularly useful for:

Homeowners who move before selling: If you buy a new home but take the time to sell your previous one, you could benefit from CGT relief for three years.
Landlords and second-home owners: If you previously lived in a rental property but later let it out, you could still claim part of the exemption.
People moving into care homes: If you had to move into long-term care, the 36-month exemption would still apply, helping to reduce CGT liability.

How Do You Value a House for Capital Gains Tax?

To calculate your taxable gain, you must determine:

Purchase Price (Original Value): The amount you originally paid for the property.
Sale Price (Disposal Value): The amount you sell the property for.
Market Value (If Required): Used when selling to a relative, gifting the property, or if the property was inherited.

Deductible Costs: Legal fees, stamp duty, and improvements (but not for maintenance).

How Much Is Capital Gains Tax on a Second Property?

As mentioned, any Capital Gains Tax is payable for second properties, rather than primary residences or dwellings. Therefore, the tax rate applicable to second homes is set at 24% for higher-rate taxpayers and 18% for basic-rate taxpayers (as of 6th April 2024).

How Long Do You Have To Keep a Property To Avoid Capital Gains Tax in the UK?

You can only avoid Capital Gains Tax if the property that you are selling is your only home. This is known as the Private Residence Relief (PRR). This rule prevents individuals who own just one property from paying tax when selling or disposing of their home.

Your Partner with Understanding Capital Gains Tax

Here at Crest Chartered Surveyors, we understand that getting your Capital Gains Tax right can mean the difference of thousands of pounds in your pocket. Our expert team of RICS-accredited Surveyors can help you with the sale of your property. Located in Holborn, London, we work with many homeowners in the region, including the South East and the Home Counties, to help them progress with the sale or purchase of their property.

Working with our qualified team will allow you to understand your and your property’s tax status and the allowances to which you may be entitled.

We understand that selling your property can be confusing, so allow us to provide some clarity. Our team can help you with your Capital Gains Tax by providing you with a detailed assessment of the value of your property at an affordable price.

What Is the Capital Gains Tax 9-Month Rule?

Posted on April 1, 2025April 4, 2025 by crestadmin

With so many capital gains tax rules over the years, it can be hard to keep track of what the current laws are and what you’ll need to pay. However, if you’re selling a home, you’ll need to be up to date with the current rules to ensure that you’re not overpaying or receiving fines for getting it wrong.

In this blog, we’ll go through everything you need to know about the 9-month rule to ensure that the process is as smooth as possible.

Key Takeaways

Capital gains tax is a tax that you need to pay on any profit that you make when selling your home.

You can get exemptions for properties that are your main place of residence.

The 9-month rule is an extra exemption that means that you don’t need to pay tax on the last 9 months of property ownership.

The 9-month rule came into effect in April 2020, after being reduced from 36 to 18 months in 2014 and then to 9 months in 2020.

The 9-month rule benefits a variety of situations, including those who buy a property before managing to sell their existing one.

You’ll need a RICS-accredited surveyor to complete a capital gains tax valuation to ensure that you know the accurate value of your property at the time of sale.

What Is Capital Gains Tax?

Capital Gains Tax (CGT) is a tax that you need to pay on the profit that you make when you sell an asset that has increased in value. This asset could be anything from a painting to a house.

For example, if you buy a house for £125,000 and sell it for £200,000, you’d need to pay tax on the £75,000 that you made in profit. It’s worth noting, however, that there is also a Private Residence Relief (PRR) that provides an exemption for any period where the property is your sole residence.

What Is the Capital Gains Tax 9-Month Rule?

When selling your property, there is an exemption period for the last 9-months of ownership, even if you weren’t living at the property over that period. This means that any gains made in value over this period are ignored, and you’ll only have to pay CGT on the gains made before then.

When Did the 9-Month Rule Come Into Place?

The 9-month rule came into effect in April 2020. The exemption previously lasted for 36 months, before being reduced to 18 months in 2014 and later 9 months in 2020 – see our blog on the 36-month rule.

The rule has been changed to reduce the unfair advantage that people with second homes could gain over those with a single residence.

How Does the 9-Month Rule Work?

For periods where you’ve owned a property that isn’t your main residence, you’ll be liable for capital gains tax. The 9-month rule essentially excludes all gains made during the last 9 months of ownership, whether you were living there or not.

For example, let’s say you bought a house in 2010 for £200,000 and it was your main residence until 2015, but then you moved into a new property, renting the original one out. In 2022, you decided to sell the property for £350,000. You would pay CGT based on:

2010 – 2015: During this period, you lived in the house as your main residence. This means that Private Residence Relief (PRR) would apply and you would pay no capital gains tax.
2015 – 2022: The property was rented out for this period, meaning that you’ll need to pay capital gains tax on it. However;
Final 9 Months: For the final 9 months, you are still entitled to PRR under the 9-month rule, meaning that you won’t pay CGT during this period.

Overall, you would be liable to pay CGT between moving out of the property in 2015 to 9 months before selling in 2022.

Who Benefits From the 9-Month Rule?

The 9-month rule has a few different use cases that make it beneficial in different scenarios. These can include:

Homeowners who move before they’re able to sell: When buying a new home, there is often an overlap between buying a property to move into and selling your old home. This exemption allows for 9 months between buying and selling.
Landlords & homeowners with multiple homes: You can claim tax exemption for at least a portion of your ownership period.
Those moving into care homes: If you need to move into long-term care, the 9-month rule provides a period where you’re able to sell your old home without paying CGT.

Who Can Value a House For Capital Gains Tax?

To value your property for capital gains tax, you’ll need an experienced RICS-accredited surveyor. They will be able to value your property based on the value at the time of sale and provide you with an accurate valuation that will be accepted by HRMC.

If you’re looking for a trusted surveyor for a capital gains tax valuation in the South East of England, look no further than Crest Surveyors. We work with you to provide a detailed valuation that avoids any unnecessary jargon so that you understand every aspect of your property.

Get in touch with a member of our team today to discuss your requirements.