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Just wondering, if I bought a property last year for 80k and now its worth around 120k due to renovating at what price would I sell it to my ltd company if i wanetd to. The purchase price or its price / value now? Who decides what its worth
The open market value at the time the transaction takes place
You would need to be able to demonstrate that the value used was a fair one, if asked
An MRICS valuation would usually do
I use Zoppla and home track for comparisons
I print of the Data and file it with the sale transaction encase HMRC want to see the info
Learn Change and Adapt ?????
All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.
so do you officially need someone to come round and value it? I know you could do this but do you need to? or could you just do a zoopla estimate like dislexic landlrod said?
You need to be able to demonstrate the price paid is fair & full
i don't know if HMRC would accept a zoopla printout, it may well suffice
if the company is buying it with a mortgage, the lender's valuation would be reasonably expected to do the job
The Property's I have sold to my Company all had BTL Mortgages that's why I sold them in the first place
If they were unencumbered I don't think I would have sold them into the company
So they were valued by the lenders valuer
Zoopla can be way way off the mark with true value.
Its a supplementary aid yes but not definitive enough for HMRC to rely solely on its accuracy for tax matters
Jonathan Clarke. http://www.buytoletmk.com
Its all to do with comparisons what sold when that's what HMRC uses
And if they think its been sold cheep am sure there new tax systems will pick it up
I have never had an issue with HMRC over the ten of years I've been in business
I happy for them to look at my affairs any time
I have just checked on Zoopla a Property I am selling into my Company and the Data is spot on
I bought it for 82k and selling for 85K
Where I find Zoopla falls down is it has difficulty dealing with properties that have had or need a decent refurb or have been bought BMV .I sometimes buy very close to ones I have already. I have 4 sets of almost identical properties and test Zoopla periodically on these for accuracy.
So 2 x 3 bed semis I bought within a month of each other both for 110K . They are now valued on Zoopla at 236K and 244K . So 8K apart which isnt too bad but the 236K one is in fact quite a bit nicer than the 244K one and has a downstairs cloak and slightly bigger bed 3.
But I wouldn`t rely on either of them for a true valuation as a similar one round the corner has just sold and was on for 260 K
The bigger the house the bigger the likehood of differential so HMRC looking at a million pound transaction will presumably look closer as it could be 200K either way. Whereas at a the 45k -50K level they will just presumably sign it off as being near enough ok
The ones am selling are Bog Standard the one I have posted I one of about 100 in the same street
If you look at the history of the area you will see the same houses being sold before 2008 crash were selling for around 120k
This shows my point at how the NE and other areas out side of the SE have not recovered ground ???
Ironic it helps out quite well with S24 and the Landlord Shuffle
I have just achieved a rent for this property of £650 pcm and I did not advertise it there is a huge shortage of family homes in this area and its not LHA