Valuing the contents of a flat

barney66

I've just made an offer on a flat including its contents (i.e. furniture, white goods etc).

Does anyone have advice on how to value the contents? A professional valuer quoted several hundred pounds so would like to avoid this if possible.

This is so I can avoid paying stamp duty on that part of the purchase.

lincroft1710

Most white goods now have limited lifespan, often as little as 3 years, so unless they're less than a year old, only fraction of new price. Secondhand furniture is again limited in value and quality will play an important part.

Work on the basis of what vendor would get if they tried to sell it to a secondhand shop, which would be very little.

zygurat789

lincroft1710 wrote: »

Most white goods now have limited lifespan, often as little as 3 years, so unless they're less than a year old, only fraction of new price. Secondhand furniture is again limited in value and quality will play an important part.

Work on the basis of what vendor would get if they tried to sell it to a secondhand shop, which would be very little.

On the other hand the items that need fitting are fitted which saves a lot. The items that need matching are matched and everything is delivered.
This is a case of the whole being greater than the sum of the parts.

You don't need a valuer just a bit of common sense.

Savvy_Sue

zygurat789 wrote: »

You don't need a valuer just a bit of common sense.

Common sense on two levels, and also listen to any advice offered by your solicitor / conveyancer.

Obviously we don't know what you're paying in total for the house, but let's say it's £300,000. I know, and you know, and HMRC know that there's a higher % of stamp duty due if you pay more than £250,000.

So how likely is it that the contents are worth £50,000? I'd expect your solicitor to advise you against using a figure that high: I wouldn't believe it, and nor would HMRC.

John_Pierpoint

If the contents are screwed down, in general terms they have become part of the structure.
Are we right in assuming this stamp duty avoidance question does not clash with an IHT avoidance exercise on the part of the seller?

It might be a good idea to take photos to back-up your inventory and its valuation.

uknick

I suppose this all depends on what type of valuation HMRC will accept.

If it is 2nd hand/market value my experience of clearing two houses in the last year is that the furniture/white goods etc. were worth next to nothing if you try to sell it. Having said that, the furniture in both properties was in a pretty bad state and the white goods were also several years old.

If it replacement cost, I suppose you could argue the value is what you need to spend if you had to put new items in the property if you threw out all the old stuff.

As a guide to HMRC thinking, when I came to do the IHT forms for the estates linked to the properties I did ask what was needed to support my valuations. They said I could use EBay and the local classified ads.

zygurat789

uknick wrote: »

I suppose this all depends on what type of valuation HMRC will accept.

If it is 2nd hand/market value my experience of clearing two houses in the last year is that the furniture/white goods etc. were worth next to nothing if you try to sell it. Having said that, the furniture in both properties was in a pretty bad state and the white goods were also several years old.

If it replacement cost, I suppose you could argue the value is what you need to spend if you had to put new items in the property if you threw out all the old stuff.

As a guide to HMRC thinking, when I came to do the IHT forms for the estates linked to the properties I did ask what was needed to support my valuations. They said I could use EBay and the local classified ads.

But in this case the OP is not buying an individual anything off ebay he is buying a whole matching fitted set which makes it more valuable

lincroft1710

zygurat789 wrote: »

But in this case the OP is not buying an individual anything off ebay he is buying a whole matching fitted set which makes it more valuable

OP said nothing about it matching or fitted, just white goods.

zygurat789

lincroft1710 wrote: »

OP said nothing about it matching or fitted, just white goods.

Perhaps you should read the first post

lincroft1710

OK furniture as well, but again doesn't say that it is fitted.

As John Pierpoint correctly states, items that are screwed down, i.e. fitted wardrobes, built in hobs, ovens, washing machines, dishwashers, fridges etc. are counted as part of the structure. Usually these would be mentined in the EA's property particulars.

Now if OP is buying some genuine antique Chippendale furniture amongst the contents or the odd Picasso on the walls, it may be enough to affect the stamp duty.

StuC75

think the OP needs to be more forthcoming with information..

Most likely the property is for sale at slightly above a stamp duty threshold and is looking at how other contents can be included so that it 'slips under the radar' of paying above - but without attracting higher stampduty on the total amount...