Selling a house in a time warp

Mary_Alice

My Uncle passed away and the house is to be sold and split 3 ways. The solicitor has asked for a valuation so she can completed the inheritance tax form and start the probate process. It is hard to guess the value as although the structure is solid with a newish roof, guttering and chimney flashing . He had new plastic doors and double glazing about 5 years ago.  The inside though is like stepping back to the 50's. 
The kitchen has a free standing cooker, fridge  and an old table and that is it- no fitted cupboards or any work tops. 
The house is an old council house that had a toilet and coal house just inside the back door then the bathroom on the other side of the kitchen. 
There is no central heating, just a gas fire up stairs and down and electric  oil filled radiators in most rooms 
The garden is huge but overgrown and there is no drive , but plenty of room for one. 
So , do I get an estate agent in? look at the house over the road ( which has been fully updated )and knock 25/30/40% off 
Then do I try to sell it as it is or fit a bathroom, kitchen and heating.
I brought my own house 30+ years ago and really I have no clue where to start. 
Thanks in advance 

user1977

Is the estate likely to be liable for inheritance tax? If not then the valuation isn't all that critical. But if you're planning to sell it anyway then no harm in getting agents in. Probably best to sell as is, subject to fixing any actual defects, tidying up garden etc.

sammyjammy

Just get an estate agent and sell as seen, no point spending money on it, give that valuation to the solicitor, if the solicitor is the executor then it is them that is selling the house not you.

caprikid1

Thanks to Sarah Beany people can pay silly money for fixer uppers, sounds like an excellent FTB property who has access to family who can come in gut it and help out.

Mary_Alice

user1977 said:

Is the estate likely to be liable for inheritance tax? If not then the valuation isn't all that critical. But if you're planning to sell it anyway then no harm in getting agents in. Probably best to sell as is, subject to fixing any actual defects, tidying up garden etc.

Yes it is border line as he had an ISA and savings. That is why she wouldn't take a "desk top" /guess valuation , As he had no children then in passes to my Mum , brother and me so cannot just be passed on apparently ?

Mojisola

Mary_Alice said:

user1977 said:

Is the estate likely to be liable for inheritance tax? If not then the valuation isn't all that critical. But if you're planning to sell it anyway then no harm in getting agents in. Probably best to sell as is, subject to fixing any actual defects, tidying up garden etc.

Yes it is border line as he had an ISA and savings. That is why she wouldn't take a "desk top" /guess valuation

Best to pay for a RICS valuation - the solicitor should have suggested that.

Flugelhorn

did he leave a will? - did it leave the estate to be divided between the three of you?

theoretica

user1977 said:

Is the estate likely to be liable for inheritance tax? If not then the valuation isn't all that critical. But if you're planning to sell it anyway then no harm in getting agents in. Probably best to sell as is, subject to fixing any actual defects, tidying up garden etc.

Except if the valuation is too low, and you end selling for more and paying capital gains tax... 

Slithery

Mary_Alice said:

user1977 said:

Is the estate likely to be liable for inheritance tax? If not then the valuation isn't all that critical. But if you're planning to sell it anyway then no harm in getting agents in. Probably best to sell as is, subject to fixing any actual defects, tidying up garden etc.

Yes it is border line as he had an ISA and savings. That is why she wouldn't take a "desk top" /guess valuation , As he had no children then in passes to my Mum , brother and me so cannot just be passed on apparently ?

In that case you need to get a proper valuation done by a RISC qualified surveyor. EA's need zero qualifications or training and you will have no legal comeback against them if HMRC end up deciding that the wrong amount of tax has been paid.

theoretica

I believe if the probate valuation is too high and the property is sold for less *by the executor* then the excess inheritance tax paid can be reclaimed.  Worth checking this with your solicitor as the rules may have changed since my grandparents' house was sold.

scoot65

Get a RICS valuation done and then you know the true market value rather than an estate agent's guesstimate. I had a RICS valuation and the valuer was at the property for an hour and was very thorough. The cost was £420 inc. VAT.