Probate valuation and property

[Humble Tiller]

My parents house has been left to myself and my two half siblings, 2/3 to me, 1/3 to them. I wish to buy them out of the property, do they have to accept the probate valuation or is a market valuation needed ? Thanks in advance.

 

[Dr Death]

What does your solicitor advise as it might be a bit of a legal mine field with probate over market value in the current situation as some properties are deemed to be of higher/lower value since CV19.

Good luck.

 

[harrythebastard]

Had the same thing myself last year, as far as I can recall the probate valuation was the market valuation at date of death.
I don't think property values have dropped much yet from what I can see.
No doubt they will opt for the current market valuation if it profits them that way, but make sure that you speak to a brief first.
Ours is still all ongoing so don't expect a quick resolution with probate and good luck.

 

[Donny]

When I went through something similar I was told it was up to us: if both sides accepted the probate valuation then we could simply go with it. If either side wanted a market valuation (which might be sensible if there’s been a delay since the probate valuation was done), then the norm was to get the average of three agents’ figures and use that.

if the final price you settle on is different to the figure used for probate then the executor is supposed to resubmit the final price and pay/be refunded the difference in IHT (if any). We got a refund as the probate valuation was on the optimistic side.

 

[Provost]

I would suspect that if it is a voluntary arrangement, they can accept anything they wish. A probate valuation is really just an indicative valuation for the purpose of an initial inheritance tax assesment. Final tax liability is assessed on the actual price realised.

Market value may well be over or under this figure.

I assume that solicitors will at some stage have to be involved in this. Why not let them deal with it?

 

[Just_plain_you]

My parents house has been left to myself and my two half siblings, 2/3 to me, 1/3 to them. I wish to buy them out of the property, do they have to accept the probate valuation or is a market valuation needed ? Thanks in advance.

They don't have to accept any valuation. Best advice would be to talk to them.

 

[philc]

Wife was left 1/2 house, we brought other half off brother, market value which was same as probate value, middle of 3 agents valuations.

 

[Humble Tiller]

What does your solicitor advise as it might be a bit of a legal mine field with probate over market value in the current situation as some properties are deemed to be of higher/lower value since CV19.

Good luck.

I have yet to speak to my solicitor as the market valuation proposal was only put forward yesterday. Prior to that all three of us were working off the probate valuation quite happily.

 

[dingerr]

Is there a great difference between what the valuation was at probate and it’s current valuation?

If there‘s any difference then agree on a price between the two.

 

[Humble Tiller]

Is there a great difference between what the valuation was at probate and it’s current valuation?

If there‘s any difference then agree on a price between the two.

Sound advice. Thankyou. Tbh I just want everything wrapped up, it seems to have been dragging on for ages, especially at £270 an hour for the solicitor dealing with the will(s).

Edit: I've never done this before, I thought the probate valuation was the only one.

 

[MoleBath]

If there is to be a formal valuation best if the parties instruct a Chartered Surveyor to act for them jointly to avoid a dispute. If there was IHT paid and the estate disposes of the property to one of the beneficiaries it MAY under certain circumstances be possible to revisit IHT liability.
Best to be a bit formal and pay some fees to avoid the danger of subsequent family bickering

 

[Humble Tiller]

If there is to be a formal valuation best if the parties instruct a Chartered Surveyor to act for them jointly to avoid a dispute. If there was IHT paid and the estate disposes of the property to one of the beneficiaries it MAY under certain circumstances be possible to revisit IHT liability.
Best to be a bit formal and pay some fees to avoid the danger of subsequent family bickering

We have had a formal valuation for probate done by Savills, quite expensively at that. If the others are not happy with Savills opinion then we will just have to have another one done and, as Dingerr said above, split the difference.