- Project plans
- Project activities
- Legislation and standards
- Industry context
Last edited 23 Sep 2019
Difference between existing use value and market value
The term 'existing use value' (EUV) describes what property or land is worth in its current form. In other words, the price that it can be sold for on the open market, assuming it will only be used for the existing use for the foreseeable future.
Generally there is minimal or no difference between the EUV and market value of property or land, however, there are some instances where there will be a difference. For example, there may be an expectation that it will be possible to get planning permission to develop the land, or that it may be possible to change the use of property. This will give it a higher value, known as 'hope value'.
Such a difference could be material to an overall assessment of an entity’s financial position. For example, a company has an obligation under the Companies Act 1985 to disclose if the figure shown on its balance sheet is materially different from the market value of its assets.
There may also be a difference between the values if the valuation involves a property portfolio. According to 'RICS Valuation – Professional Standards', as long as the difference between the values on one individual property does not make a material difference to the aggregate value of the properties in the portfolio, the valuer is only required to indicate whether the market value of that particular property would be higher or lower than the EUV. They do not have to provide an alternative valuation or give reasons for the difference.
 Related articles on Designing Buildings Wiki
Featured articles and news
Getting organised below the surface.
Securing suitable water systems.
Love them or hate them, they are popping up everywhere.
The initiative to enhance the environment continues.
Could underused community spaces offer an alternative to working from home?
Keeping workers and workplaces safe in the United States.
A history lesson in geographic information systems.
A low tech, easy to use method of extinguishing small fires.
How can these valued spaces be reused?
Partnership avoids the need for listed building consent.
Connecting building design from inception to completion to operations.
Gregor Harvie predicts interoperability will be construction’s Uber moment.