Historical valuation of a house

How to obtain the historical valuation of a property

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Short version

What is the best way to obtain the historical valuation of a house without there having been a sale at the time?

Long version

Four years ago my wife's step-father died, and in his will he chose to pass his half of the marital home to my his son, my wife, and her brother. The condition was that his wife (my wife's mother, who kept her half-share of the house) would be able to live in it rent free until she chose to move out. The house was transferred to being part owned by the four of them, with my wife effectively owning 1/6 of the total value.

Fast forward to now and her mother has moved out and the house is being sold. As far as we are aware at the time of the transfer of ownership no valuation of the house was taken, so it's not possible to calculate an accurate gain against the current sale price. Although there are various calculators online which would give a figure, I would assume that HMRC would expect a more professional valuation to be made. Are there any particular organisations / calculations which would be able to produce an acceptable valuation for this purpose?

Thanks

Replies (12)

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By David Ex
14th Jan 2024 22:18

bassett.matthew-AT-gmail.com wrote:

Are there any particular organisations / calculations which would be able to produce an acceptable valuation for this purpose?

https://www.rics.org/networking/find-a-member.html?firstname=&lastname=&...

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Replying to David Ex:
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By FactChecker
14th Jan 2024 23:04

You'll be asking them (a Chartered Surveyor) to provide a "Red Book valuation".

This isn't guaranteed to be 'accurate' (in the sense that by definition it can only be an educated guesswork), but it is a recognised document that HMRC will usually accept.
[I say usually because in complex scenarios they have the right to commission their own valuation, which might disagree with your one.]

I do hope there is a full set of documentation covering all the transfers (and conditions) from the time when step-father's estate was settled.

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By johngroganjga
14th Jan 2024 22:37

Are you sure it wasn’t valued for probate purposes at the time of your father in law’s death? Have you asked his executor(s)?

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Replying to johngroganjga:
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By [email protected]
14th Jan 2024 22:42

Unfortunately it wasn't valued - he was well below the threshold for inheritance tax so an accurate value wasn't required.

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By bernard michael
15th Jan 2024 09:26

A local estate agent may be able to help particularly if there was a similar house in the same street for sale at the time of death

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paddle steamer
By DJKL
15th Jan 2024 11:16

Was a IIP trust ifo his wife created on his death?

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stonks
By WinterDragon
15th Jan 2024 11:32

We had the exact same question in our office last week with a client that inherited land that was not valued at probate. Our conclusion was either the client can offer us a figure and be prepared for it to be challenged or approach a chartered surveyor for a bit more certainty.

A CG34 may provide further assurances but waiting times with HMRC may result in having to use estimates on the CGT property form which will have to be updated when HMRC respond to the CG34.

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stonks
By WinterDragon
15th Jan 2024 11:32

We had the exact same question in our office last week with a client that inherited land that was not valued at probate. Our conclusion was either the client can offer us a figure and be prepared for it to be challenged or approach a chartered surveyor for a bit more certainty.

A CG34 may provide further assurances but waiting times with HMRC may result in having to use estimates on the CGT property form which will have to be updated when HMRC respond to the CG34.

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Lisa Thomas
By Lisa Thomas - Insolvency Practitioner
15th Jan 2024 11:48

A decent estate agent should be able to give the estate what is needed.

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Replying to Insolvency Practitioner:
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By FactChecker
15th Jan 2024 14:45

I've certainly found them to be *extremely* amenable - although I've had to point out to them, more than once, that they shouldn't 'open the bidding' by asking what my purpose is (with a clear suggestion of being more optimistic or pessimistic in the valuation depending on what would suit me)!

Which is of course why HMRC look more favourably/unquestioningly at a formal "Red Book valuation" ... so for OP it's probably a matter of materiality/risk.

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James Dean
By JamesFD
15th Jan 2024 15:15

Home Track offer an online valuation service that allows you to set a date in the past for £19.95.

I don't know if that would be acceptable to HMRC but it could be a start..

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Scooby
By gainsborough
16th Jan 2024 10:06

Worth also checking mouseprice.com and land registry to see if any similar neighbouring properties were sold at the same time.

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