Helping you navigate Inheritance tax valuations

These are legally binding agreements within a deed that restrict or specify the use of the land to which they relate. Restrictive covenants forbid certain actions, such as operating a business, whilst positive covenants require an action such as ‘keep in good condition’. Such covenants will be reflected in our valuation where these have a material impact.

These are legal rights to pass over or through property owned by someone else. Each right of way will specify the scope of that right. Some can be public rights of way and applicable to all, others may be specific to a person or a particular adjoining property. Such rights can affect a valuation, positively or negatively, depending upon the rights granted.

Condition refers to items of disrepair that materially affect value, e.g. dampness, rot, dangerous services, etc. Minor decorative matters are not usually taken into account for the purposes of valuation but can influence our valuation in aggregate.

The lease terms are the specific conditions set out within a lease that dictate the rights and responsibilities of the parties involved. These can define the due dates for rent payments, the obligations for maintenance and any restrictions as to the use of the property.

Hope value is that part of a property’s potential market value which exceeds the property’s current use value. Hope value therefore reflects the added value inherent in respect of beneficial future improvements such as obtaining planning permission for development or from a change of use.