Cost of Property Valuations

A property Company I set up some years ago - owns an Industrial Unit outright and now I want to buy a S.23 property to offset the companies tax bill.

I recently went to a bank to get a loan to purchase the property. They informed me that I must have a valuation done on the property as it hasn't been valued in 10+ years.

I have enquired and found that this will cost between €2,000 and €2,500. Seems very expensive to me. Is this correct?
I understand they will do there own valuation - which I will probably be charged for also ( sounds like an "I'll scratch your back you scratch mine" between the bank and valuers??)

Also the bank want all my own personal details (salary, net worth etc etc) - but I cant understand why? Its the Property Company buying the building - not me - and the security offered by the property company easily covers the S.23 property.
Are they just trying to gather info on me?

Any info would be greathly appreciated.

I'm far from an expert but there was an article in the Irish Times property section about this very thing this week.

From what I remember valuations on commercial property are the norm and are more than just a "drive by" valuation but are more akin to structural surveys - they also take at least a couple of hours.

WRT the personal details I presume that the only asset of the company is the Industrial Unit and so the banks are looking for comfort that the Directors have the ability to pay the Sec23 mortgage if needed (ie the Directors have income / assets that the bank can chase if the company goes under: Limited Liability means less and less these days)

As I said I'm far from an expert and hopefully others with direct experience in this area will be able to provide additional advice

A residential mortgage valuation costs between €96-€130 so I can't believe a commercial valuation would be €2000+! Perhaps you've been quoted for a full structural survey? Ask the bank who is on their panel of valuers in your area and then ring round.

Sarah

www.rea.ie

ETA - I take it you are the sole director of the property company? If so that's why they are looking for your personal details.....

I can't find the Irish Times article now but it did mention that surveys for commercial property were in the region of €2,000 to €2,5000

Valuations on commercial properties could be in the region of €2-4k as there is percived to be more risk involved in the estimation

A residential valuation is based on current market values in the area which usually is easily obtained

But the value on a commercial property can be largely effected by building size, land size, proximity to services, current use, planning permission for expansion not to mention potential future use

Still there is still scope to bargain and shop around but it depends on who the bank will agree to accept a valuation

They probably will not have an approved list of valuers but get a few quotes and then contact the bank and see if they will be happy to run with the one you choose

stuart@buyingtolet.ie