We also have a YouTube Short on this topic.
A retrospective valuation refers to the process of estimating the value of a property as of a specific date in the past.
Unlike a current market valuation, this approach looks back in time to determine what the property was worth at that earlier point.
When Are Retrospective Valuations Used?
Retrospective valuations are commonly required in scenarios such as:
Tax Matters
Including capital gains or inheritance tax calculations. His Majesty’s Revenue and Customs (HMRC) will require the valuation to reflect the date relevant to the specific matter. This could be the date of a divorce, death, or the point at which tax became payable.
Divorce Proceedings
Also referred to as a matrimonial valuation, this applies where historical property values are needed to divide assets fairly. It may be relevant when a separation was delayed or a valuation was not undertaken at the time of separation.
Litigation
This applies in cases involving disputes between the owners or beneficiaries of a property. Retrospective valuations can help provide a resolution in matters such as compensation claims or ownership disagreements.
Financial Reporting
A retrospective valuation may be required for audit purposes, where the historical property value must be determined and documented for reporting or filing.
RICS Standards
Retrospective valuations should be carried out in accordance with the Royal Institution of Chartered Surveyors (RICS) Valuation – Global Standards, commonly known as the Red Book.
This framework provides internationally recognised guidelines for ethical, accurate, and consistent property valuations.
A qualified RICS valuer will ensure that the retrospective valuation is based solely on information and market data available as of the specified historical date, and that it complies with the required professional and technical standards.
How Is a Retrospective Valuation Completed?
The valuation uses established methods—such as the comparable sales approach—applied within the context of property market conditions that existed at the relevant past date or the date specified for the retrospective valuation.
The valuer’s professional judgement will be used, with appropriate adjustments made to reflect:
- The location
- The condition of the property
- Property characteristics
- The tenure of the property (leasehold, freehold, or share of freehold)
- The size of the property
- The date of the sale
- The prevailing market conditions
If you require a retrospective valuation, please do not hesitate to get in touch with us. A full price list for our valuations is available on our Valuation page.
