Tom Killen is a Chartered Surveyor and Partner in Killens and primarily undertakes work in the Professional Services team of Killens and below answers common questions that arise in carrying out tasks.
My solicitor has advised me that I need a formal Red Book valuation for Probate purposes rather than a market appraisal from an estate agent. Do I really need this?
A probate valuation is often required where the estate of the deceased is taxable and therefore a calculation of the value of the deceased’s entire estate is required in order to assess the potential inheritance tax liability. Even if the estate isn’t taxable, a probate valuation may be required to prove this.
The executor of a will is responsible for ensuring that any Inheritance Tax due on the estate is paid correctly. If HMRC suspect that the Inheritance Tax has been miscalculated, it can have a serious impact on the estate, its beneficiaries and the executor(s).
Often referred to as a ‘Red Book’ valuation, probate valuations have to be carried out by RICS Registered Valuers who are regulated by the Royal Institution of Chartered Surveyors (RICS). Killens have RICS Registered Valuers that can produce valuations which can comply with the strictest RICS standards.
A “Red Book” report is far more likely to stand up to any scrutiny than a standard “Market Appraisal.” The report will go into detail on the background of a property and the valuer will carry out far more research.
A Red Book report details how the valuation figure was calculated and puts the Executors in a much stronger position should the valuation be queried by HMRC.
We also work with property owners to provide comprehensive assessments and valuations for the purposes of estate planning – thereby helping clients proactively reduce the tax burden for beneficiaries.
Whether you’re navigating the difficult probate process, or putting together your own estate plan, working with a professionally recognised valuer is the safest way to ensure you get a fair valuation and that you or your loved ones don’t pay any more tax than necessary.
I currently let a residential property and I have read in the news that it may be more difficult to terminate the tenancy. What is the position?
Section 21 of the Housing Act 1988 currently enables private landlords to repossess their properties from assured shorthold tenants by serving two months notice without having to establish fault on the part of the tenant. Hence it is sometimes referred to as the ‘no-fault’ ground for eviction.
On 15 April 2019, the then-Government announced: “Private landlords will no longer be able to evict tenants from their homes at short notice and without good reason.” This was followed by a consultation process in 2019 with the consultation paper proposing the abolition of section 21.
The Queen’s Speech 2021 announced an intention to publish the Government’s response to the 2019 consultation exercise and provide details of a private rented sector reform package in a white paper in autumn 2021.
The white paper, ‘A fairer private rented sector’, was published on 16 June 2022 and it outlines proposals to abolish section 21 evictions and introduce a simpler, more secure tenancy structure. A tenancy will only end if the tenant ends it or if the landlord has a valid ground for possession.
The grounds for possession will be reformed to ensure landlords have means to gain possession of their properties when necessary. New grounds will be created to allow landlords to sell or move close family members into the property. Grounds concerning persistent rent arrears and anti-social behaviour will be strengthened. With the recent changes in the Government, it is uncertain whether the paper will be presented to Parliament during 2022/2023 but it is assumed that it will be.
I own 10 acres next to my house which I allow a neighbour to manage during the summer. They graze horses and sheep on the land. Should I have a written agreement with them?
In letting land, there are two forms of agreement that are now generally used for pasture land – grazing licences and farm business tenancies. Most arrangements are on the basis of grazing licences as these allow the landowner to retain both control and occupation. Most licences allow for the grazing or mowing of grass between April and October.
Written agreements are very useful in clarifying what has been agreed, what rights are being granted and what the obligations of each party are. In the absence of an agreement, there can be scope for disagreement and these can turn quite difficult.
A Farm Business Tenancy is a lease of agricultural land for agricultural purposes commonly used when the landowner does not need to retain occupation of the land and where land is to be let for a prolonged period of time.
Choosing the right form of agreement and having an agreement can be vital to avoid inadvertently giving the grazier/tenant statutory legal rights such as security of tenure where it may be difficult to bring an occupation to an end. This is particularly the case if horses are kept on the land. Horses are not considered livestock within the definition of agricultural use and if the wrong agreement is used in these circumstances, you may give the occupier security of tenure.
I plan to replace the fence against my neighbour’s property, do I need planning permission?
You will not need to apply for planning permission if you wish to erect a new; or alter, maintain, improve or take down an existing fence, wall or gate if the following conditions are met:
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