The RICS valuation forum announced yesterday that a valuation caveat “may no longer be appropriate” for three types of property. This refers to the "material valuation uncertainty clause" that valuers were adding to property valuations post Covid 19. The clauses were added to valuations towards the end of March following the initial lock-down .
The forum has now announced that the clauses will no longer apply to three types of property, namely stand alone food stores let to major operators, institutional grade GP surgeries and certain long let properties.
The last category seems to be those properties with leases unexpired of c 20 years or more let to strong covenants.
It's good to see the introduction of these changes and hopefully this will lead to an orderly lifting of these clauses as the market becomes stronger and more confidence returns.
The RICS Material Valuation Uncertainty Leaders Forum, which came together in the wake of the COVID-19 pandemic, has agreed that the caveat “may no longer be appropriate” for standalone food stores let to major operators, institutional-grade GP surgeries and certain long-let properties.