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Diminution valuations for building surveyors
This article arises out of a paper given at the RICS Dilapidations Conference 2012, updated to reflect recent case law. It considers damages for breach of the repairing obligations under a lease. Their assessment requires careful consideration of the cost of works, and the diminution in the value of the landlord's reversionary interest, if any. Notwithstanding this point, it is the author's experience that the interrelation of the two are not always understood by building surveyors when advising their clients at the outset of a dilapidations dispute. The author calls on his experience of dealing with diminution valuations to help the building surveying team to a better understanding of the valuation process and the role of the valuer. This includes an explanation of why establishing the cost of remedying the breaches is important at the outset. Guidance is also given on how the building surveying team can assist the valuer and ensure more accurate assessment of the value of the landlord's reversionary interest.
The full article is available to institutions that have subscribed to the journal.
David Gilbert BSc Hons Dip Arb FRICS FCIArb IRRV is National Head of Professional Standards and Practice in Lambert Smith Hampton. He has 39 years’ experience as a valuer and lease advisory specialist. He has lectured extensively on valuation, lease advisory and dispute resolution topics. He has published papers on related subjects in The Journal of Building Survey Appraisal and Valuation, Estates Gazette, Journal of Property Investment and Finance. Now dealing largely with regulatory matters he continues to provide strategic and consultancy advice in a valuation or lease advisory capacity.
CitationGilbert, David (2013, June 1). Diminution valuations for building surveyors. In the Journal of Building Survey, Appraisal & Valuation, Volume 2, Issue 2.