What is a retrospective property valuation?

If you’re new to the world of commercial property investment there may be a few terms you are unfamiliar with. One term our team is asked about from time to time is retrospective property valuation, so we thought it might be useful to provide an outline of this service and when this might be required.

So what is a retrospective property valuation?

Put simply, a retrospective (or backdated) property valuation is a price based on a previous point in history. One of the most common reasons it might be required is for Capital Gains Tax for investment properties that were acquired after 20 September 1985. Your CGT liabilities will depend on the property’s increase in value from the time it was purchased or first used as an investment property to the time it is being sold. Our role as professional valuers is to accurately identify the original property price at the date in question.

The process of calculating a retrospective valuation

Developing a figure for a retrospective commercial property valuation is usually not a straightforward process and it requires the resources and expertise of an experienced valuer for a precise result. Generally the older the property, the more difficult valuing commercial real estate can be. Our valuers access databases with historical market value data and will research market conditions of the original transaction. While the actual visit to the property may not be a lengthy process, the knowledge and information required for a valuation in this respect is what enables valuers to produce an accurate figure.

What will be taken into account?

The following considerations are taken into account when developing a retrospective valuation for commercial property:

The year that the property was purchased
The price in the original sale agreement and whether this is deemed as an accurate valuation
Information from a number of sources in order to reach a historically correct valuation
In some cases, the property in question may have had extensive works completed at the premises which can affect the current valuation figures in contrast to the original date. The valuer will take into account any major changes to the property into their property valuation services.

Accuracy is key

When a retrospective property valuation has such a significant impact on your tax obligations, it’s critical that you choose a certified practising property valuer you can trust to make an accurate and informed valuation. Contact the Burgess Rawson property valuation team today for any questions or services to do with your commercial real estate valuation.


Stay up to date with our latest portfolio auctions & insights