Sitting Tenant - How to value?

Inadilemma

Hi, I need to get a valuation of a property for the purposes of Probate and Inheritance tax. The property in question has a value of around 200Kish as a freehold property but currently has a very long standing sitting tenant in there who gets their rent paid by the council of an amount just under 500 a month, this is reviewed bi-annually. The tenant is a widow and she and her deceased husband have been on this tenancy agreement for around 50 years, she is around 90 years old. How and who would be able to value the property with this sitting tenant as it obviously has an effect on the price, i.e its not market price.
Properties in the same road that are renewed privately go for around 900 monthly. Thanks

Browntoa

What type of tenancy agreement is it ?

davidmcn

Probably need to get a surveyor to give you a valuation, especially if you're into inheritance tax territory.

Inadilemma

Browntoa wrote: »

What type of tenancy agreement is it ?

It’s a ‘regulated tenancy’.

Owain_Moneysaver

You will need a RICS surveyor and he will need a copy of the tenancy agreement. If it's some types of protected tenancy, the widow's children might be able to inherit the tenancy on the same terms, in some circumstances, so you can't assume the property will become available in the foreseeable future.

Inadilemma

Owain_Moneysaver wrote: »

You will need a RICS surveyor and he will need a copy of the tenancy agreement. If it's some types of protected tenancy, the widow's children might be able to inherit the tenancy on the same terms, in some circumstances, so you can't assume the property will become available in the foreseeable future.

Thanks. Any idea how much a RICS valuation is these days? Long time since ive made a purchase I’m afraid. Thanks

Owain_Moneysaver

Depends on the property, location and work. Maybe £200-300.

00ec25

Inadilemma wrote: »

Thanks. Any idea how much a RICS valuation is these days? Long time since ive made a purchase I’m afraid. Thanks

can't answer on cost, but I'd expect it to be >£300 for what it is and at that price it will save you more than that in tax on the estate.
I agree you need a RICS valuer

you can find a local one here
https://www.ricsfirms.com

then in the search options on the left click on the 4th option: "select surveying service" and right at the bottom of the dropdown list select "valuation"

note being a registered valuer is an additional qualification for a RICS registered surveyor. You want a valuer .... not just a surveyor

45002

Inadilemma wrote:

It’s a ‘regulated tenancy’.

Previous thread https://forums.moneysavingexpert.com/discussion/5935695/sitting-tenant

As their new LL you will not be able to changing any of their existing terms/legal rights as set out under the 1977 Rent act.




.....

G_M

As their new LL you will not be able to change any of their existing terms/legal rights as set out under the 1977 Rent act.