Cheap professional property valuation for future tax purposes

searching_for_truth

Hi – Does anyone have recommendations for (cheap) professional property valuers? Something that will be recognised by HMRC. Estimates from comparables found from rightmove won’t do. I don’t know if this needs to be by chartered surveyors or there are other people who can do it too.

Background is this: Someone is gifting his property to his son and the solicitor has said it is wise to value the property now, because if the son in the future goes to the sell the property then CGT will kick in. Since the current owner has had the property for many years, it has appreciated in priced a lot. Solicitor if the property is valued now, then that can be used as evidence of the property’s current market value, so you won’t be overpaying on CGT when you sell it in the future.

The valuer who the solicitor has recommended have offered to do the valuation for £1,500. I want to know if it can be done cheaper.

Many thanks

TrickyDicky101

searching_for_truth wrote: »

Estimates from comparables found from rightmove won’t do.

The solicitor tell you this by any chance? As long as they're sold com parables they would be fine (within a reasonable timeframe of the valuation date anyway). How much of the £1500 fee is the solicitor's kickback?

What is the approximate value of the property? Must be £500k plus to semi-justify that size of fee?

troubleinparadise

I got a RICs qualified chartered surveyor to give me a valuation for a house for probate/IHT purposes.

HMRC did refer the valuation to the District Valuer, who confirmed the valuation was correct.

It cost me £100 (and that also included a valuation of house contents also for IHT purposes).

So I'd suggest shopping around qualified people in your area for a comparison.

booksurr

at the end of the day a valuation for CGT purposes will always be referred by HMRC to the Valuation Office Agency and what the latter says is final, irrespective of whatever valuation you provide.

obviously what you provide will be used as a guide and the VOA should in most cases simply tell HMRC "we agree". Therefore you could risk submitting the average of some sold price comparables if you want, but as you have already identified a valuation from a more "credible" source may make things easier. In which case you want a Chartered Surveyor who is a member of the RICS registered valuers scheme (called the "red book list")

no idea if such people charge a % or flat rate fee, but worth getting some quotes - you can find them via the RICS website by location and then tick the registered valuer box on the left hand menu, here is an example search using Guildford as the location: http://www.rics.org/uk/find-a-member/?sd=y&cc=GB&fn=&ln=&ct=guildford&ac=RGVL

googler

Another vote for RICS surveyor

phill99

The words 'cheap' and 'professional' don't go n the same sentence.

searching_for_truth

Thank you all - The solicitor had said 'for tax purposes it's better to have a professional valuation' so he didn't exactly say it has to be 100% his way. If the fair fee is £1,500 (btw it’s that plus VAT, so £1,800) I’m happy to pay. It’s just that the valuer is keen on securing this business (emailed two days in a row). The house price is above £500k, something that after I told the valuer (he asked) he emailed 10 minutes later to schedule the visit. Don’t know how much is the solicitor’s kick-back.

Thanks booksurr for the RICS site advice. I have now contacted a number of close-by registered valuation companies and will see how much they charge.

ging84

http://www.nationwide-intermediary.co.uk/lendingcriteria/products_and_fees/property_valuation
http://www.hsbc.co.uk/1/2/mortgages/mortgage-fees-itemised

http://www.halifax-intermediaries.co.uk/products/mortgages/valuation_fees/default.aspx
these are for comparison
and mortgage lenders have a reputation for not being particularly cheap you've not no choice over who to use.

unless you are talking about a multi million £ property or somewhere that requires travel to somewhere very remote, you should be having a word with your solicitor asking him what the hell kind of crook he's recommended you

getmore4less

£1500+vat seems very high I would be concerned about this solicitor and their recomendations.

Phone around for a paid probate valuation it will be in the low £100s.

We had one done for a £300k(ish) place by a qualified rics valuer/estate agent quote was £100 but they never charged in the end.
A multipage report covering all the angles.

As this gift is a disposal there are taxes assesment/implications.

CGT both sides will depend on who has been living in the places,
It will be a PET for IHT purposes.

I think money spent on decent tax advice is essential here. especialy if the doner plans to stay living in the place.

getmore4less

Is the solicitor charging as well for legal work?

Snakey

You do need a "proper" valuation (well you don't need it, but it is advisable that you have it - comparables are always going to be open to challenge and it gets harder to prove things such as condition etc after a number of years have passed), but that fee is excessive. Let's hope your other quotes come back cheaper.