RICS recommends lifting of Material Valuation Uncertainty clauses

9 September 2020

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The Material Valuation Uncertainty Leaders Forum set up by the RICS have today issued an update recommending a general “lifting” of Material Valuation Uncertainty clauses for “all UK real estate, excluding some assets valued with reference to trading potential”.

A Material Valuation Uncertainty declaration is applicable when there are sharp and unpredicted shocks to a market leading to a temporary suspension of market activity. The RICS recommended their use on 17th March 2020 and they were only expected to be applicable for a relatively short term.

For properties where there is little transactional comparable evidence, other indicators should be considered.

As I have noted in previous updates on this subject, it is still down to the valuer to consider each property individually and for some properties the valuer might still believe it is appropriate to include a Material Valuation Uncertainty clause.

Mansford has expanded its investment portfolio over the last few years. Over this time Andrew West has provided us with a full rating valuation service which has involved giving a view on liabilities prior to acquisitions, as well as conducting negotiations with Valuation Officers on our UK estate. The portfolio includes a wide range of properties from shops, offices and pubs to major leisure schemes. He has been particularly successful in mitigating our liabilities to empty property rate, which has been an issue on acquisition prior to implementing our development and letting strategy. I have no hesitation in recommending Andrew's expertise in rating valuation for all property types. The profile of property within his portfolio and the successes achieved are testament to his position as an extremely accomplished rating practitioner.

Leopold Hall, Partner, Mansford LLP