I am acting for the executors of the estates of both Mother and Father.
Mother and Father each owned a share of a property as tenants in common with their daughter. The property commenced as equal ownership but over the years the parents have released part of their shares to the child. The property is a mixed use; part commercial and part residential.
I would normally apply a 10% discount for the probate value to allow for the shared ownership. However, I wondered in what circumstances it may be possible to claim a percentage greater than 10%. I have asked surveyor but they do not know. I should be grateful if anybody has any knowledge or thoughts on this subject.
Thank you for your responses. The surveyor is talking about a valuation subject to vacant possession but the daughter lives rent free in the property. There is no tenancy agreement but she is a legal owner with a majority interest. Presumably the daughter is entitled to occupy by virtue of this fact and the lack of vacant possession would surely influence the open market value?
If D is in occupation an order for sale would be hard to come by if the purpose originally was to provide the property for her use, so if this is the case go for 15%