Will Property Be Valuated For Freehold Or Just Land?

A property owner with a freehold right over a property completely owns said property. A freehold ownership extends to everything standing above the land of the property in question as well as everything beneath the property’s lands.

A freehold owner is responsible for the maintenance of all aspects of the property. Most bought houses are given with a freehold title, but some are leasehold. Freehold property owners never have to worry about paying lease to a landlord concerning their property or any other charges a landlord might demand for. This is because the property is owned outright by the title holder.

What factors affect the valuation of a freehold property?

When evaluating a property, the valuator needs to take into consideration various features and characteristics of the property question. Doing so will provide the information necessary for an accurate property value to be calculated. Some of the characteristics and features necessary to take into consideration when calculating a property’s value include;Structural improvements: A property that has had renovations and improvements made to its building structure will likely receive a

Structural improvements

A property that has had renovations and improvements made to its building structure will likely receive a favourable valuation. Said improvements can include the additions to the building structure to increase space, such as an attic or a conservatory.

Room layout

When evaluating a property, the number of rooms available as well as their sizes will be taken into consideration. But keep in mind that a property with many rooms of small sizes will likely be poorly valued in comparison to a building with larger rooms. Availability and the condition of essential rooms such as kitchen, bathrooms, laundry rooms, and so on will also be taken into consideration.

Age

A property’s age is an indicator of the safety and integrity of the building. Older structures are more likely to have faults such as leaky plumbing, damaged roofs or walls, poor wiring, outdated heating system and such. Thus, an older building which has not been recently renovated or upgraded to include modern facilities stands the risk of being poorly valued. But an older property that can be proven to have an historical significance will probably receive a more favourable valuation.

Size

When it comes to property, size does matter. The more space, both land and within the building, that a property has, the more likely it is to have an estimated high value. A reason for this is the larger a property is, the more available space there is for expansions and extensive modifications.

Storage space

The amount of storage space, be it in the basement, attic, or elsewhere, will also impact the results of a property valuation. The availability of more space within a property is capable of bringing about a favourable valuation

Location

The location of a property is a factor that every valuator pays especial attention to. When considering a property’s location, things such as the security and accessibility of the neighbourhood are taken into consideration. Another thing that is taken into consideration is if the area where the property is located is prone to unfavourable circumstances like flooding and such. Property valuators will use the estimated value of neighbouring properties to determine a market value for a subject property.

Wear and tear

A property that has been well maintained and is obviously in good shape will likely be higher valued than one which isn’t. Assessing the wear and tear of a property doesn’t take into consideration just the physical structure of the building but also the state of the property’s grounds as well.

Electrics/heating

The sort of heating in place; centralised or decentralised, modern or outdated will also be considered. How functional and how up to date the electrical wiring is will also contribute towards calculating the value of a real estate.

What can be done to positively influence a property valuation’s estimate of a property?

A property valuation can be influenced to give a favourable estimate of a property’s worth by carrying out any of the following home renovations;

  • Update fittings and services: Plumbing and electrical fittings can be updated and fixed to improve a property’s worth.
  • Adding a conservatory: Adding a conservatory can yield up to a 100% return on investment, and thus improve a property market value.
  • Installing more bathrooms: Adding more bathrooms where necessary in a property has been proven to be an effective way to positively impact a property’s worth. Remodelling old bathrooms also helps.
  • Fixing structural faults: Structural faults may consist of; damaged roof, wall cracks, insect or rodent infestation, mould, creaky floors, and other similar problems. Fixing them is a good step towards improving a property’s value.
  • Replacing heating: Replacing an outdated heating system with a centralised and modern one can effectively increase a home’s value.
  • Paint: Repainting both the exterior and interior of the building will give it a new and attractive look that improves its obvious worth.
  • Adding a loft or attic: Doing this to create more space can improve a property’s value with at least a 50% return on investment.
  • Kitchen makeover: The kitchen is one of the central hubs of a building. Improving it and giving it a sanitary look will contribute to a positive assessment by the property valuator.
  • Improving the landscape: Doing a bit of gardening to improve the landscape will create a good first impression that’s bound positively impact a property’s value.

While carrying out renovations, be sure not to make the mistake of doing too much or going overboard with renovations. Improving a property to increase its market value can go wrong if the renovations are excessively done, are done without planning, too expensive, or not relevant. To avoid spending more money than will be recoverable upon sale of a property, it is best to consult an expert. For example, adding a pool is a costly form of home improvement that has proven to be mostly ineffective in improving a property’s value.

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Published on 1st June 2017

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