Help with District Valuer querying probate value of property

mgdavid

RJF71 wrote: »

............. District Valuer did not provide any evidence other than 3 values of house sales for bigger properties on bigger plots in better states of repair in a road in which all the houses have bigger gardens, better views etc. I think they have used a formula per SQ M of external area to calculate a land value and then applied it to the property in question.

Isn't this the bulk of the evidence you need to fight it?
Plus the bit you said about the DV not being a building surveyor?
You seem to have done everything correctly and the DV to my mind is on thin ice. If you don't contest it, how much extra tax are you going to pay? Can you afford or justify effectively chucking that amount away?

RJF71

Thanks mgdavid, potential extra liability would s £20k if we don’t contest.

Current suggestions by estate agents are actuall £375k for market 2 years after date of death but the market is still booming in that school catchment area and don’t want to use that as valuation for IHT. Complicated family reasons for not being able to sell it any earlier.

I am confused as to why HMRC challenged the valuation so long after they gave me clearance in 2017 and with only the reason of the valuation looks a bit low according to the district valuer .

It all feels very subjective and I suppose I just wanted some perspective as to whether it’s worth the fight or not. I suspect the original valuer (surveyor) might have thought he was doing us a favour keeping the valuation low

lincroft1710

District Valuers are usually RICS qualified. If you want a professional to negotiate on your behalf with the DV you need a Chartered Surveyor

getmore4less

If you will go with 300k what evidence do you have the market moved 25% in 2-3 years since DOD.
(not zoopla)

Tom99

Since you are talking about a saving of £20,000 why not pay the £500 or so for a 2nd RICS valuation. Provide as much info as possible re the repair costs, has any of this now been done or costed?

getmore4less

It may not be a £20k saving because there may be a CGT bill accumulating while they keep the place and do it up.

Not clear if anyone is living in it if not there are other costs accumulating.
Council tax should have kicked in by now.

Also the roof that needs replacing seems have lasted nearly another 3 years so not that urgent at DOD.

RJF71

Thanks everyone for views advice and opinion. I've asked the District Valuer for further clarification of their valuation and why they were asked by HMRC months after I received clearance to look at the property. I will wait to hear from them before making a decision. The intention has always been to sell the property as per the terms of the will however one beneficiary has been reluctant to let go.

I probably need to get past the fact that it feels like HMRC are trying to squeeze everything possible out of the estate even though I wasn't trying to downvalue the house and thought that a RICS valuation would be the most robust one to get.

I will post an update for those that are interested!

getmore4less

A beneficiary can't stop a sale unless they already own some of the property and are on the legal title.

If they have not been able to buy it off the estate in 2 years tell them time is up.

Always good to get some feed back on real cases for others to use as reference.

RJF71

getmore4less wrote: »

A beneficiary can't stop a sale unless they already own some of the property and are on the legal title.

If they have not been able to buy it off the estate in 2 years tell them time is up.

Always good to get some feed back on real cases for others to use as reference.

Thanks, the beneficiary isn't blocking the sale, we were just trying to be kind and understanding. They are not on the legal title. Time is up now

RJF71

Update on this: I raised a complaint with HMRC as they had issued a clearance letter for IHT and the IHT helpline had said they had no outstanding queries on the account but the District Valuer was pushing to get me to agree to the valuation which was £50k more than the probate value.

HMRC complaints have fully upheld my complaint as the clearance letter and instruction to the District Valuer were issued and this shouldn't have happened. As they have issued the clearance letter they say they have to abide by this which means that the initial probate valuation of the property will stand and they will ask the District Valuer not to contact me again.

They have also said they have made changes to their processes so that this cannot happen again.

Thanks for all the help here, property sale now progressing and hopefully i can get the estate wound up before too long