House value query for probate

SpamJam

If anyone can advise from a legal standpoint on this issue I'd be grateful: I am in the process of setting up probate for my late mother's estate. Unusually, her house was leasehold and she was in the process of buying the freehold as we had agreed on a purchase price, had solicitors in place and everything. Unfortunately my mum died on the very day she was due to sign the final piece of paperwork to authorise the purchase. I will still be completing the purchase of the freehold, although it will now need to be done under probate. 

As it stands the leasehold only has another 37 years to run, but the freeholder has confirmed that they are happy to continue with the sale.

My question is whether I am required to value the house as a leasehold property or whether it can be valued based on the fact that the freehold purchase will be completed long before I am likely to sell it (I will be moving in and doing up the property over the next year or so). 

Savvy_Sue

It's generally value on date of death, but it could be worth getting proper advice on this specific point ...

Linton

I agree the value is that at death.  However the leasehold situation may have some bearing on that.  Consult a RICS surveyor.  An increase in the value of the house whilst it is owned by the estate could result in tax charges.

SpamJam

Thanks both! I'm aware of the possibility of CGT if the value of the house in probate increases significantly when sold - which is one of the main reasons why I'm seeking advice. (Luckily the estate is below the IHT threshold tho). 

I was just hoping someone on the forum might be able to give some specific advice re. what I know is a fairly uncommon scenario...  Even getting a 'leasehold valuation' is tricky because 5 bedroom houses are very rarely anything other than freehold. 😬