This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

How to value share of property

Bill31
Posts:50
Joined:Sun Jan 19, 2020 12:32 am
How to value share of property

Postby Bill31 » Thu Feb 04, 2021 4:50 pm

Father gifted share of property few years back valued at 450k. Its now valued at 550k approx.
Plan is to buy his share out and he's going to move else where. We own as tic 50/50

I take it to find out market value its not 550/2 so 225k for his share. It could be a lot less. The rics surveyor said they only value the property as a whole and it be up to me to figure out what the half share is.

Is it true that the quantum of father's original gift of half the house to me would have been the total value of the house at the time, less the value of his retained half. For the reasons outlined in the link this is not half the total value of the property.
https://sfe.legal/when-is-a-half-not-a-half-the-problems-of-valuing-a-share-in-a-property/
Ideally I want to be paying him exactly half so he can buy another place

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: How to value share of property

Postby bd6759 » Thu Feb 04, 2021 9:27 pm

You can pay your father whatever you want for his share. What’s the problem?

Bill31
Posts:50
Joined:Sun Jan 19, 2020 12:32 am

Re: How to value share of property

Postby Bill31 » Thu Feb 04, 2021 9:59 pm

Well suppose his share is worth 250k, can I instead give him 300k for the sale. Would this extra 50k been seen as gift and the 7 year rule applies?
Any iht issues with me inheriting this all back upon his death later?

Also upon sale because there was a grob on the first half share he gifted to me would a 7 year pet run In regards to this? Because I'm thinking on the gift on the first half share few years back, selling the house would release the grob forcing a pet?


Return to “Property Taxation”