Property valuation

Property valuation

  • Property valuation is the estimated market value, converted to cash payment, for a property in February of each year. The estimated valuation can be seen from 31 May each year.  Registers Iceland informs property owners of the estimated valuation in June. The valuation then enters into effect on 31 December.

    The building inspector in each municipality sends information to Registers Iceland on all new real properties, changes to them, buildings that have been torn down and new joint ownership agreements. The registration of the properties is then changed in accordance with the notifications. 

    Property owners can always access the fire insurance value and current and estimated property valuation on Registers Iceland’s website. Property owners can view the notification for the 2017 property valuation in the inbox in My Pages at Ísland.is. This requires Íslykill or electronic identification.  You can also request that the notification be sent by mail.

  • Definitions of Registers Iceland’s valuation stages:

    Valuation stage 1

    • Building and construction permit.
    • Marks the beginning of the building’s construction history. The Building Authority’s blueprints are sent to Registers Iceland to be registered in the Property Register.

    Valuation stage 2

    • Foundations.
    • Construction of the building commences and the foundations of load-bearing structures completed. The bottom slab shall be in place if it is a load-bearing part of the foundation.

    Valuation stage 3

    • Load-bearing structures raised.Load-bearing structures for the building have been raised.

    Valuation stage 4

    • The building is weather-tight.
    • A building is considered weather-tight when the roof has been waterproofed and windows and doors have been sealed. When a building is weather-tight, its value is calculated into the property valuation.

    Valuation stage 5

    • Building ready for interior fitting. The building/unit is ready for interior fitting. Partition walls (concrete/stacked) have been completed.
    • Wooden or metal grid walls are covered and ready for plastering, and other walls have been finalised in a corresponding manner.
    • Floors are to be finalised at the correct height for the final protective covering.
    • Finishing work of concrete roof slabs ready and timber ceilings to the roof have a finished moisture-protection layer, conduit channels and a frame for electrical wiring and are ready for cladding.
    • Windows and sashes must be complete, with glass and fittings.
    • Indoor wastewater drains complete along with utilities.
    • Heating and ventilation systems must be complete and finished.
    • The electrical intake is connected and completed, as is wiring to the mains switchboard.

    Valuation stage 6

    • Building complete apart from finishing work on-site.
    • The building/unit is complete apart from finishing work on-site.

    Valuation stage 7

    • Building complete.
    • The building/unit is complete.
    • The building as a whole is considered complete when all of its units are complete.
    • Pedestrian crossings and parking spaces at the site must have been completed as well as all soil work.

    Valuation stage 8

    • Building not fully completed but taken into use.
    • The building/unit is incomplete but has been taken into use. At valuation stage 8, the building may undergo a fire insurance appraisal.

    Valuation stage 9

    • Building undergoing reconstruction.
    • Describes the situation when a considerable part of the building is undergoing reconstruction and the construction work is so extensive that there is reason to change the valuation temporarily.

     

    Up to valuation stage four, the property valuation is the same as the lot evaluation, but as of valuation stage four, the property valuation consists of the house and lot valuation. The valuation then changes in accordance with the valuation stage until the house is considered complete, as it may be assumed that the market value of the house increases as the building becomes more complete.

  • The purpose of the property valuation is mainly to provide grounds for the levying of public dues, as the property valuation is the basis for property charges and inheritance tax. Property charges are based on an assessment of price levels in February in the year before the dues are levied.

    Property valuation has been used as reference for various other purposes. Stamp duty when registering a purchase agreement depends on the property valuation, for instance. Some credit institutions also base the degree of security of a real property on a particular percentage of its property valuation.

    It is important that owners make sure that information on their real property is properly recorded. If information is incorrect, comments are to be submitted to the Building Authority in the relevant municipality. Property owners who believe that the property valuation does not reflect the market value can submit a comment F-502 (in Icelandic) or apply for a revaluation F-501 (in Icelandic).