VALUATION Corp. Provides Commercial and Residential Property Valuation Services in Moscow and Other Russian Regions
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Independent valuation of real estate in Russia is a sequence of actions, regulated by the Russian federal law 135FZ "On appraisal activities in Russian Federation" and federal valuation standards, carried out by an independent certified appraiser to determine the value of the subject property.
Speaking about the valuation of real estate, we always mean determining the value of a certain bundle of rights which constitutes title of the subject property. In relation to property, whether it is a land plot, building, premise or structure, there are three most commonly encountered bundles of rights:
This is the most common type of property title, when the title holder has outright ownership of the subject property and this ownership is not limited in time. In this case the value of the subject property is equal to the value of the full rights of ownership in relation to this property.
Leasehold is a form of real estate tenure and is usually obtained by the tenant upon conclusion of a lease. Unlike freehold, leasehold is limited in time – tenant obtains rights to possess and to use the property only for a limited period of time (lease duration). In Russia leasehold estate can be freely bought and sold on the open market.
3. Mixed leasehold and freehold.
This form of mixed real estate title is probably unique to Russia, but here we have many real estates (especially in big cities) where building in freehold sits on a leased land plot. In this case, if the building is sold, the lessor is legally obliged to lease the land to the new owner of the building, under the same conditions. As long as the building stands, the land owner cannot deny the building owner to lease the land plot under the building, however the lessor he has the right to adjust the land lease rate according to market conditions.
Sometimes subject property may have limitations in use or may be encumbered with the rights of third parties. Examples of such encumbrances are collateral, compulsory lease or duty to give the right of passage through the property, established by law. The presence of an encumbrance usually reduces the market value of the subject property.
Most often, valuation of a real estate is required in the following situations:
- The closing of a sale transaction. In this situation both parties of the sale are interested on getting an independent professional opinion on the subject property’s value.
Also, an independent valuation is especially desired when making a transaction between affiliated companies, because Russian tax service has the right to verify compliance of
the transaction price with market conditions and may charge extra taxes if it considers that the transaction was made at a non-market price. The valuation report from an independent
appraiser can be an official proof of market nature of the sale transaction.
More about property valuation for sale transactions...
- Transfer of property or partial rights to the property to shareholder’s capital (charter fund) of a legal entity. For such a procedure property owner is required by law to have
the market value of the subject property independently appraised. The market value determined by an independent appraiser is the upper limit on the value at which the subject property
can be transferred to the shareholder’s capital (charter fund).
More about valuation of contributions to the shareholder’s capital (charter fund)...
- Court dispute resolution involving subject property. During the trial an independent appraiser’s report on the subject property serves as the basis for calculating payments and compensations for the parties involved. It should be noted that most of such appraisals require assessment of the property’s value for the past date - the date when the events that are the subject of the court dispute review took place - this is the so-called “retrospective valuation”.
- Giving the property as a pledge to bank. The market value of the collateral is the basis for calculating the amount of the loan, and an independent valuation is a prerequisite for obtaining a loan.
In this situation either the market or liquidation value of the property can be appraised.
More about valuation of collaterals...
- Property insurance. The size of the insurance premium and the insured amount are closely related to the market value of the insured property - these are interdependent values.
A property always consists of buildings (structures) and a land plot, but the risks of damage to a building (structure) and land are completely different and this must be taken into account.
In this situation, the purpose of the valuation is to determine the optimal amount of the total insurance sum.
More about valuation for insurance purposes...
- Revaluation of fixed assets of a legal entity for accounting purposes. Such appraisal is carried out once a year at the end of the calendar year in order to change (revalue)
the book value of the property. The annual revaluation of fixed assets makes it possible to balance their book value with current market conditions which is beneficial for company’s
investors and creditors.
More about revaluation of fixed assets...
- Determination of the market rental rate. Independent confirmation of the market value of the property rental rate is mandatory by law and required when renting real estate owned by Russian federal or municipal government.
We have more than 20 years of experience in real estate valuation in Russia. Our company provides highly qualified professional services for independent valuation of commercial and residential property – land plots, buildings, premises, residential houses and apartments (condos) in Moscow and other regions of Russia. We also value various industrial structures – roads, bridges, tanks and vessels, tunnels, pipelines, cable lines, power transmission lines, railway tracks, etc.
Depending on client’s requirements we can prepare our valuation reports in English or Russian language according to international or Russian valuation standards.
We also do valuations of large enterprises’ property complexes with real estate located in different regions of Russia. Having extensive experience in implementing large-scale valuation projects and having established professional relations with real estate appraisers in all Russian regions we complete such tasks for our clients in shortest possible time.
In addition to property valuation services, we also provide related consulting services such as:
- Title check for a particular property.
- Custom sectoral property market research and monitoring.
- Creating property price map for a region of interest.
- Property inspection by one of our qualified inspectors.
Should you require more information about our services or a quotation for a specific valuation project, please contact us.
- Documents confirming property's title.
- Technical passport of the subject property issued by Russian Technical Inventory Bureau.
- Floor-by-floor plan of the subject property with legend issued by Russian Technical Inventory Bureau.
- Information about existing property encumbrances, including mortgages, restrictions due to the presence of tenants and other restrictions on the use of the subject property (if any).
- Documents confirming the land plot's title (if available).
- Information about any movable property (if any) to be valued together with the real estate.
- Information about book value of the property (if owned by a legal entity).
This list of required information and documents is preliminary and depending on the type of subject property and purpose of valuation may be reduced or expanded after the our review of the valuation assignment.
If you require quick rough estimate of real estate value in Moscow, you can use our free online calculators.
Note that the calculators give only an approximate indication of the property’s value, therefore for a full and accurate valuation, please contact us.
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