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Valuation of house for probate

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  • Valuation of house for probate

    Hi,
    My widowed elderly father recently fell very ill and was admitted to hospital. Whilst in hospital his bungalow which he was very proud of, and which was in really nice and clean condition had a flood from a faulty toilet cistern, and flooded the house completely.
    His insurance was informed by myself and they accepted the claim. The house needs both new carpets and redecorating throughout. The soaking carpets were taken out by the insurance company and the wallpaper is starting to peel off the walls from the damp so it now looks a mess. I'm told it could take 3-4 months before it can be fixed.
    Unfortunately my father then passed away in hospital.
    My problem now is the valuation of the house for probate.
    If its valued now will they value it as it looks now, which is a mess, or will they value it as it was, a nice looked after bungalow?
    I fear it will be as it looks now, is there anything I can do about it?
    Tags: None

  • #2
    The value is what it would sell for.However, as the insurance company have agreed to the repairs, it should be considered as having been repaired.

    The problem with the final valuation (when both have died) is if you get it wrong and the property is eventually sold at a higher price then capital Gains Tax may be payable. Get a qualified valuation to be sure as best you can.

    Comment


    • #3
      The valuation for probate is not a big issue. They tend to be on the generously low side.
      On the eventual sale tax is payable. It is payable on a mix of the value at probate (inheritance tax) and the increase in value after probate (Capital Gains).
      How long is this particular bit of string?

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      • #4
        Thanks for the answers

        Comment

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