5 Reasons You Should Consider A Commercial Property Valuation For Your Businessby Eimile K. Freelance Writer and Researcher
Commercial property valuations are vital. Not only do they have an immediate purpose, but they also offer many long term benefits that often people aren’t aware of. A valuation is an essential component of all property transactions and ownership. Many businesses view commercial property valuation services as an unnecessary expense, not realising how much it can aid them financially in the long run. So to shine some light on why this is so important, we’ve put together 5 quick reasons why you should consider a commercial property valuation and the benefit that it can bring:
Company Account Purposes
Having a property valuation to hand within company accounts is extremely practical. The nature of a property asset means that the value is relevant to that of its current market and knowing that current value can save both time and money when dealing with clients.
If your company experiences a change in director or shareholding then an updated valuation may be required and by not having this valuation, it can delay the process of negotiation or forming contracts. Sometimes a drawn out process, this can cause frustration between both parties and create bad business reputations. The valuation is also valuable to have to hand in the case of a director or shareholder wanting to retire. Company or property assets may need to be divided between remaining shareholders or directors so the party will need to know what their value is worth before any decision can be made.
Capital Gains Tax
If you’re selling your business premises which exists on public grounds, you will be required to provide a formal written value by Inland Revenue as this will calculate any Capital Gains Tax due. Having a commercial property valuation to hand prevents any delays or disputes in the selling of your business grounds, making the process more efficient and easier for you.
Your business and property holdings may be your primary retirement fund. By hiring a professional to give you a property valuation, it will give you an insight into whether your property is corresponding with its expected capital growth and yield. It is then that valuation that will allow you to plan for the future and give you a sense of stability in what you should receive.
Businesses that require bank funding are likely to be secured against the business premises. In this case, bank managers will likely ask if you are aware of your property’s current market value. If you are unable to answer then this could lead to further issues in terms of borrowed funds. Therefore, approaching a valuer prior to speaking with your bank will save time and allow you to enter your meeting prepared with a clear idea, showing your bank manager you are serious and have carried out the necessary research. In the end your loan will be given in accordance with your property’s current market value so it is vital that you’ve taken the time to have one done. Remember your loan will align with the location of your business. This is where valuation are crucial. Take Manchester for example, a thriving business hub, if you were looking to or already had a building there. You could take a loan based on the areas value, speaking to commercial property agents in Manchester, would give you an accurate indication of market health. Your loan would then be based on that area, giving you somethings a much higher value than you’d expect.
Guide Maintenance and Renovation Decisions
Investing in property is a big commitment that obviously involves a lot of money. As an owner of a property, it is your duty to maintain the premises, therefore you must ensure that regular maintenance checks should be carried out to ensure the property is at an appropriate standard. When it comes to changes, you need to be careful that any unnecessary renovations or developments can lead to overcapitalisation of the asset, so make sure you do your research before you make alterations as this can lead to a detrimental loss of money. A property valuation can outline how much it is worth and therefore form a guide on what beneficial renovations could be made. Most importantly, by getting a valuation done, it will reveal the true value of the property and how much more could be made by entering into worthwhile renovations.
Created on Jan 22nd 2018 10:06. Viewed 189 times.