Probate Property Valuations
Discussion
Need to get property valuations for probate purposes.
Solicitor has advised to use a RICS surveyor who is either FRICS or MRICS.
Spoken to a couple of RICS surveyors who advised that it's important the surveyor is part of the RICS Valuer Registration Scheme as you can have surveyors who are FRICS or MRICS but not part of the RICS Valuer Registration Scheme.
Anyone with experience or knowledge able to advise if this sounds right?
Solicitor has advised to use a RICS surveyor who is either FRICS or MRICS.
Spoken to a couple of RICS surveyors who advised that it's important the surveyor is part of the RICS Valuer Registration Scheme as you can have surveyors who are FRICS or MRICS but not part of the RICS Valuer Registration Scheme.
Anyone with experience or knowledge able to advise if this sounds right?
Depends what you are trying to achieve. Assuming there will be IHT payable on the Estate there are two potential ways forward. Either,
A. Valuation for use in your Probate application pending sale of the deceased's house (or other property) which will be adjusted to the actual selling price achieved during administration of the estate. The initial value used to obtain Probate will generally be the estate agent's asking price for the property and IHT calculated/paid accordingly. The value eventually used in the Executors accounts will be the final selling price, less selling costs, and IHT then adjusted as appropriate.
or
B. Valuation that is intended to be firm and binding throughout because the property is being transferred to a beneficiary and will not actually be sold. i.e. the valuation is to be relied upon in the Executors accounts. This would need to be a formal valuation to full professional standards and will need to be submitted to/agreed by the District Valuer (who works for HMRC linked with the Probate office.)
A. Valuation for use in your Probate application pending sale of the deceased's house (or other property) which will be adjusted to the actual selling price achieved during administration of the estate. The initial value used to obtain Probate will generally be the estate agent's asking price for the property and IHT calculated/paid accordingly. The value eventually used in the Executors accounts will be the final selling price, less selling costs, and IHT then adjusted as appropriate.
or
B. Valuation that is intended to be firm and binding throughout because the property is being transferred to a beneficiary and will not actually be sold. i.e. the valuation is to be relied upon in the Executors accounts. This would need to be a formal valuation to full professional standards and will need to be submitted to/agreed by the District Valuer (who works for HMRC linked with the Probate office.)
rockin said:
Depends what you are trying to achieve. Assuming there will be IHT payable on the Estate there are two potential ways forward. Either,
A. Valuation for use in your Probate application pending sale of the deceased's house (or other property) which will be adjusted to the actual selling price achieved during administration of the estate. The initial value used to obtain Probate will generally be the estate agent's asking price for the property and IHT calculated/paid accordingly. The value eventually used in the Executors accounts will be the final selling price, less selling costs, and IHT then adjusted as appropriate.
or
B. Valuation that is intended to be firm and binding throughout because the property is being transferred to a beneficiary and will not actually be sold. i.e. the valuation is to be relied upon in the Executors accounts. This would need to be a formal valuation to full professional standards and will need to be submitted to/agreed by the District Valuer (who works for HMRC linked with the Probate office.)
Appreciate the reply.A. Valuation for use in your Probate application pending sale of the deceased's house (or other property) which will be adjusted to the actual selling price achieved during administration of the estate. The initial value used to obtain Probate will generally be the estate agent's asking price for the property and IHT calculated/paid accordingly. The value eventually used in the Executors accounts will be the final selling price, less selling costs, and IHT then adjusted as appropriate.
or
B. Valuation that is intended to be firm and binding throughout because the property is being transferred to a beneficiary and will not actually be sold. i.e. the valuation is to be relied upon in the Executors accounts. This would need to be a formal valuation to full professional standards and will need to be submitted to/agreed by the District Valuer (who works for HMRC linked with the Probate office.)
It's B.
It's a portfolio of properties and the surveyor who is part of the RICS Valuer Registration Scheme has provided a very competitive quote.
The quote, via the solicitor, from the surveyor who is FRICS/MRICS is at least twice as much but I don't know if this is a function of their designation and whether that confers any more experience and/or merit to their valuations.
The VRS surveyor has assured me that his valuations stand up to scrutiny by District Valuers as he uses the Red Book Valuation and are pretty much a bread-and-butter part of his business - he mentioned he is very busy at the moment due to CV-19.
Yes, the sad fact is that an additional 40,000 or so deaths add up to a lot of extra work for some sectors, including the probate office and the District Valuer.
Assuming he has not himself become a victim our favourite Scottish landlord will be along in a minute to say "told you so"!
Assuming he has not himself become a victim our favourite Scottish landlord will be along in a minute to say "told you so"!
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