Understanding Property Valuations and How to Update Them

What is the property valuation based on?

The property valuation shown in the accounts is based on the information provided in the annual accounting questionnaire. It is generated using a third-party automated valuation model that combines the details entered with market data, including recently sold prices of similar properties nearby.

Can I update the valuation?

Yes. The valuation can be overwritten by adding an updated property valuation to the property profile. A recent valuation from any of the following can be added:

• An estate agent
• A mortgage lender
• Another reliable source

Why might the valuation differ from my expectation?

Automated valuation models can be less accurate for new-build properties because there is less market data available. They may also not fully account for facilities and amenities within a development.

Are there tax implications when the valuation changes?

There are no tax implications from increases or decreases in property value at this stage. Tax implications would generally arise when the property or the company is sold.

Troubleshooting: My property valuation looks incorrect

If the valuation shown does not match your expectation:

1. Check the information entered in the annual accounting questionnaire.
2. Review the valuation shown in the property profile.
3. Add a more recent valuation from an estate agent, mortgage lender, or other reliable source.
4. Use the updated valuation in the property profile to keep the estimate current.

Summary

Property valuations are based on questionnaire responses and a third-party automated valuation model. You can replace the estimate with a more recent valuation from a reliable source, and changes in value do not create tax implications until sale.