Property is often the single largest asset for most people handling deceased’s estates. It therefore makes sense to seek the best advice and avoid the common pitfalls that many people run into when dealing with probate properties.
There are a number of ways in which the beneficiary’s outcome can be disadvantaged. For example:
- Undervaluing the property. If the Valuation Agency of HMRC feel that that the property has been undervalued, they will challenge this and request evidence to support the valuation. If HMRC finds that IHT has been underpaid, they can issue fines that are equivalent to 100% of the tax owed as well as claiming the unpaid tax liability.
- Overvaluing the property. The number of people claiming IHT refunds is increasing year-on-year; in the 2018/19 tax year it was 100% higher than the previous equivalent period! A contributing factor to this is properties that sell at a price lower than indicated within the overall valuation of the estate. HMRC will not automatically notify you of this, so it is important to establish an appropriate open market value from the beginning.
- Probate homes being sold below their potential market value. This can be the most common issue and the one for which there appears to be little recourse; for now, anyway! Many beneficiaries report that they have followed bad advice and sold an inherited property for a fraction of its real value. They have been led to believe that selling quickly to cash buyers or investors is their only real option. This is especially true when dealing with a dilapidated family home and having insufficient funds to restore it to its prime condition that would enable benefactors to receive the full value of their legacy.
Aventria Property has been managing properties on behalf of clients for more than 15 years. In that time we have heard many stories of how people have been unable to access guidance specifically relating to probate property matters. This is why we are now launching our new advisory page at https://aventriaproperty.co.uk/probate-ebook-bbn
This exciting new development will now allow the public to contact us directly and benefit from our years of experience within this field.
There is a misconception that there are limited options for people dealing with the sensitive nature of probate properties and we aim to tackle this erroneous belief. At the end of the day, people are having to make tough decisions about family homes that are often intrinsically linked to their childhood or upbringing.
We want to support this in a way that provides a better understanding of the available alternatives so that informed decisions can be made. At the very least we don’t want to see people making choices that they may later regret.”
Adam Cole is managing director of Aventria Property. For more information contact Grant Tookey at grant.tookey@aventriaproperty.co.uk or on 0117 276 0276.
Aventria Property has been selling properties on behalf of their clients for over 15 years. In that time, they have successfully completed on over 10,000 property sale transactions. It also provides a range of associated property services, including fully-funded, added-value renovations and guaranteed purchases. Aventria Property is a member of the Property Ombudsman Scheme.
