inherited house with subsidence

littlerock

My brother in law recently inherited his mother's house which he plans to sell. He says it clearly has some subsidence ,(cracks in wall etc) but it is a Victorian house and in good order in a nice area so might be expected to normally sell for a good price.

He is ready to get a structural survey and price it accordingly but what he is more concerned about is how it will be valued for IHT. How is this determined and should be submit a report to get it valued taking the subsidence into account?

What he dies not want to find is that it is valued for IHT at one value, as if it was subsidence free but then he has to sell it for a significant discount due to the subsidence? Any advice?

brightontraveller

littlerock wrote: »

My brother in law recently inherited his mother's house which he plans to sell. He says it clearly has some subsidence ,(cracks in wall etc) but it is a Victorian house and in good order in a nice area so might be expected to normally sell for a good price.

He is ready to get a structural survey and price it accordingly but what he is more concerned about is how it will be valued for IHT. How is this determined and should be submit a report to get it valued taking the subsidence into account?

What he dies not want to find is that it is valued for IHT at one value, as if it was subsidence free but then he has to sell it for a significant discount due to the subsidence? Any advice?

Why are they getting a survey?Simply get valuations from estate agents ( Down to potential buyers ) Pricing it themselves? Reads more like there attempting to a avoid a high valuation
Might help them or accountant , solicitor
https://www.gov.uk/valuing-estate-of-someone-who-died/overview

cyclonebri1

Subsidence is an alarm bell when it comes to selling and buying so I understand your worries. The most important thing is whether it's recent or historic.
If it happened shortly after the place was built and hasn't moved since is less worrying than if it happened yesterday.

Me?, I'd price it in accordance with the area and let any potential buyer get their own survey. That way you can discount down to the price you are considering at present and all walk away happy.

dominoman

Subsidence is so common in London that it may have no effect on the price at all.

Years ago it was a massive alarm bell. Now people are much more sanguine about it. Cost of fixing (if needed at all) is small compared to cost of buying and stamp duty.

If it is in an area of London where houses sell fast the subsidence will have next to no effect on the value. The only effect will be to scare off a few first time buyers - who tend to worry about subsidence more than most.