Valuation report meaning

What are the key issues property lawyers should consider in real estate finance transactions when acting for a funder? Understanding the deal’s nature and objective is crucial—above all, establish whether it is an investment facility or a development facility, as this will govern the principal matters to address. See further Practice Notes: Introduction to real estate finance—the lending structure, Real estate finance—development facilities—key features and Real estate finance—investment facilities—key features. Due diligence and investigating title At times a funder may instruct its solicitor to carry out first-hand due diligence; in that case, see Practice Notes: Property due diligence in corporate transactions, Reporting to a lender in an investment real estate finance transaction and Real estate in corporate transactions—overview. More typically, the funder will rely on a London Law Society (CLLS) certificate of title (Certificate) prepared by the borrower’s solicitor and reviewed by the funder’s own solicitor. See Practice Note: Guide to drafting or reviewing a certificate of title. Adverse effect on value When undertaking due...

Pre-completion Checklist for funder's solicitor Checklist for borrower's solicitor Title information Where the borrower’s solicitor is issuing a certificate or report on title, verify they have supplied a signed engrossment of it, with all plans and annexures, to be held to their order until completion day. Confirm the borrower’s solicitor has incepted any required defective title or chancel repair insurance and that the premium is paid before completion. The certificate/report on title must also set out the title insurance policy particulars. Obtain confirmation from the valuer that the valuation stands unchanged in light of the certificate/report. Deliver to the funder a signed, dated summary report covering the title position. Provide the funder with any construction, planning and/or environmental reports prepared as part of the transaction. Make sure all HM Land Registry forms are approved and, where the application will be sent off by the funder’s solicitor, that signed forms have been received. Ensure all third party notices are approved...

Checklist This checklist explores the actions a buyer’s solicitor ought to take during due diligence to deal with matters arising from the property’s physical state and the surveyor’s findings, as part of the investigation. Although this Checklist refers to the buyer’s solicitor, equivalent considerations apply to a tenant’s solicitor acting on the grant of a new lease, and to a borrower’s solicitor involved in the financing or refinancing of property. A solicitor is not qualified to advise on the state or the value of a property, and the report on title prepared for the buyer by the buyer’s solicitor should include a qualification to that effect. If the survey or valuation identifies any issues with the property, the buyer may wish to negotiate a reduction in the price or to include an obligation in the contract requiring the seller to remedy the matter prior to completion. Has the buyer’s solicitor advised the buyer to commission a survey? A buyer’s solicitor should always advise the buyer to have the property...

In this issue: Brexit highlights Brexit SIs Post-Brexit transition guidance Public procurement Constitutional and administrative law Judicial review Equality and human rights State security and intelligence Daily and weekly news alerts New and updated content Dates for your diary Trackers Useful information Brexit highlights NIO publishes Terms of Reference for Independent Review of Windsor Framework The Northern Ireland Office has released the Terms of Reference for an Independent Review of the Windsor Framework, as required by Schedule 6A to the Northern Ireland Act 1998. Initiated after a consent motion cleared the Northern Ireland Assembly without cross-community endorsement, the review will consider how the Framework is working and its influence on social, economic and political life in Northern Ireland. It is consistent with undertakings in the October 2019 Unilateral Declaration and the January 2024 Safeguarding the Union Command Paper. The resulting findings will be submitted to the UK Government, supplying vital...

In this issue: Key developments and horizon scanning Repairing obligations and dilapidations Rent and rates Enforcing security and property insolvency Trespass and adverse possession Disputes and remedies Service charges Easements and covenants LexTalk®Property Disputes: a Lexis®Nexis community Additional Property disputes updates Daily and weekly news alerts New and updated content Trackers Key developments and horizon scanning King’s Speech 2024—property measures The 2024 King’s Speech set out property measures anticipated from Labour’s election campaign, including ending ‘no-fault’ evictions in the private rented sector and progressing Law Commission proposals on enfranchisement, commonhold and the right to manage. The supporting background briefing, adding further detail, confirms reforms will include regulating ground rents—trailed during Labour’s campaign but excluded from the Leasehold and Freehold Reform Act 2024 (LFRA 2024)—and also points to abolishing residential forfeiture. That issue has been contemplated for a considerable time: the Law Commission’s 2006 report, ‘Termination of Tenancies for Tenant Default’...

In this issue: Funding and investment Members and benefits Types of workplace pension schemes The Pensions Regulator Pensions dashboards Daily and weekly news alerts Dates for your diary Trackers Funding and investment TPR calls for endgame strategy shift as it publishes Annual Funding Statement 2025 The Pensions Regulator (TPR) issued its Annual Funding Statement (AFS) on 29 April 2025 for trustees and sponsoring employers of occupational defined benefit (DB) pension schemes, the first to sit under the new DB funding code introduced in November 2024. The statement sets out TPR’s expectations for the reformed regime and is most relevant to schemes with valuation dates from 22 September 2024 to 21 September 2025, now described as Tranche 24/25 (T24/25) to align with the calendar year, having previously been intended as Tranche 20 (T20). In appendix 1, TPR provides further clarification on its December 2024 guidance on assessing the employer covenant, and appendix 2 explains how trustees...

This Practice Note explores the regulation of key investor information documents (KIIDs) under Articles 78–82 of Directive 2009/65/EC (the UCITS Directive), Chapter 4 of the FCA Handbook on Collective Investment Schemes (COLL 4), and Regulation (EU) 583/2010 (the KII Regulation), which prescribes in granular detail how a KIID must be presented. Form and substance of the KIID Layout and order of sections Ways of supplying a KIID to investors Consequences of non-compliance Following the Brexit transition period, the KII Regulation has been retained in the UK with onshoring changes to ensure the regime functions in the UK, as set out in Retained Regulation (EU) 583/2010 (the text is reproduced in COLL Appendix 1 UK KII Regulation). For further information on UCITS investor information—covering prospectus, annual report, and valuation and pricing details—see Practice Note: Key provisions of UCITS—investor information. Obligation on UCITS managers and KII-compliant NURS managers As a consequence of Directive 2009/65/EC (the UCITS Directive), all management companies must,...

FORTHCOMING CHANGE 1 : On 1 September 2022, the DLUHC opened a consultation proposing new duties for the LGPS to oversee and disclose climate-related risks, including the carbon emissions tied to their investments. The LGPS is the UK’s largest public sector pension scheme, covering 6.2 million members and holding £342bn in assets worldwide. Under the government’s plans, administering authorities would be required to: Calculate their carbon footprint; Assess how climate change could influence pension-related assets and liabilities; and Report each year on the extent to which assets align with the 2015 Paris Accords, the international climate treaty adopted by much of the world. This seeks to enhance the management of climate-related financial risk and would bring the LGPS into line with requirements already in force for private pension schemes. The proposals are intended to replicate the Task Force for Climate-Related Financial Disclosures (TCFD) measures that already apply to the largest private occupational pension schemes and master trusts. The consultation closed...

What are conditions precedent? In finance deals, conditions precedent (CPs) are the requirements a borrower must satisfy: typically before it may submit a utilisation (drawdown) request; and before the lender is obliged to release the funds. They are set out in the facility agreement, which commonly requires each CP to be in a form and substance satisfactory to the lender. In real estate investment finance, property‑specific CPs aim to assure the lender that: it will obtain a first legal charge over the property; and the property is acceptable security for the loan. For more detail, see Practice Notes: Real estate finance—conditions precedent and the mechanics of drawdown in development facilities and Real estate finance—conditions precedent and the mechanics of drawdown in investment facilities. What are the usual property specific CPs? A satisfactory certificate of title or report on title The lender will require property due diligence to confirm that the borrower will...

PRIVATE & CONFIDENTIAL [ insert name and address of surveyor ] [ insert date ] Dear [ insert name of surveyor ] [ insert case heading ] INSTRUCTIONS TO ACT AS RIGHTS OF LIGHT SURVEYOR CONFIDENTIAL AND LEGALLY PRIVILEGED LETTER OF INSTRUCTIONS/TERMS OF ENGAGEMENT I represent [ name of client ] in relation to the property identified as [ property description ] (the Property), of which my client holds the leasehold/freehold [ delete as applicable ] ownership, with the title recorded at HM Land Registry under title number [ insert title number ]. I write to confirm my client’s instructions for you to prepare a report (the Report), together with any follow-up reports and/or advice requested, and, if appropriate in due course, to act as an expert in any court proceedings, all in relation to rights of light matters at the Property arising from the proposed redevelopment of the Property (the Proposed Redevelopment)...

1 Introduction This letter instructs you to act as the single joint expert in financial remedy proceedings arising from divorce proceedings between [ client’s full name ] and [ spouse’s full name ]. You are jointly instructed by [ lead firm preparing letter ] for [ client’s full name ] and by [ name and address of spouse’s solicitors ], [ telephone number and email of spouse’s solicitors ] on behalf of [ spouse’s full name ], on the basis that your expert opinion will remain independent of both parties. At the First Appointment on [ date of first appointment ], District Judge [ name ], sitting at the Family Court at [ location ], made the following order: [ insert exact wording from order ]. The scope of your instructions is confirmed in the order dated [ date of first appointment order ] and in this letter. 2 Arrangements for preparing the report Should you need to discuss the report, whether on a preliminary basis or...

To: The [ directors OR partnership ] [ Insert the Buyer’s name, address and (if applicable) company registration number ] Dear [ insert organisation name ] [ Insert the name and address of the Property ] (the 'Property') 1 Scope of this report and reliance We have prepared this report solely for your benefit in connection with your intention to purchase the Property from [ insert name and address of Seller ] (the 'Seller') for £[ insert price ] [ plus VAT ]. You have informed us that the acquisition is for development of the Property. Our conclusions are based on our examination of the Seller’s title, the responses to enquiries provided by the Seller, and the outcomes of relevant searches. The findings of our review are set out in this report, which consists of this letter and the annexures. This report may not be shared with, or relied upon by, any other party without our prior written consent...