We quite often find ourselves having to distinguish between residential chattels and fixtures in our line of business. We may be valuing personal possessions for insurance purposes, or inheritance tax. On other occasions, we may be clearing a hoarded home in a house or apartment. Stay with us while we explain how to decide where to draw the line.
Drawing the Line Between Residential Fixtures and Chattels
Fixtures and Fittings
Fixtures are things that are permanently attached, or fixed to buildings so they cannot move freely. They ‘belong’ to that building, as opposed to being part of the estate of the person living there.
If the resident dies in rented accommodation, then the fixtures are not part of the estate now belonging to their heirs. If we clear a home, then we have to leave them untouched.
Chattels and Possessions
Chattels are freely movable objects that we can pick up and move from their current location. Some of these possessions are large, and easily identifiable like washing machines and curtains.
However, others are smaller and may be more difficult to spot. This does not mean though that they do not have any value. Our house clearance team has spotted some amazing things down the years,
There Is Value in Small Things ©Avery Associates
How to Decide if an Item Is Fixed or Movable
This matter can become quite complex if you do not have prior experience to call on. The overview of the topic we provided above is just an introduction. The devil is often in the detail, and many court cases have been fought over that!
To summarise what we have covered thus far concerning residential chattels and fixtures. Fixtures are part of the property, on the basis of being directly or indirectly attached to the land. While chattels belong to the resident, because they can take them with them when they leave.
Operationally speaking, this means that all fixtures belong to the new owner when a property changes hands. This transfer of ownership may occur when the ‘host’ property is sold, or passes to the heir(s) in a deceased estate.
By contrast, to hammer home the point, the chattels in that property either go with the owner when they leave, or belong to their heir(s) according to the terms of their will or the laws of succession applying.
Is That Trophy a Chattel or a Fixture? ©Avery Associates
The Two-Stage Test in UK Property Convention
The Law Teacher website suggests using a two-pass process if in doubt. Here they rely on the well-known UK case of Hellawell v Eastwood (1851). This involved a dispute whether industrial machines bolted to a floor were chattels or fixtures.
The court determined that two factors should drive its decision:
- The degree of ‘annexation’ or the extent to which the items were attached.
- The reason why the person doing so, fixed the items in the first place.
These same principles have applied to residential chattels and fixtures in the United Kingdom since then. The 1851 court decision concluded that the extent of ‘merging’ or attaching with the land was the discriminating factor. In other words:
- The physical bond attaching the object to the property.
- How closely the object attaches itself to the property.
A far more recent 1997 UK court case considered a wooden bungalow which rested directly on concrete foundations, but was not bolted to them. The court agreed that this did not constitute a fixture per se.
However, the bungalow could not be removed without demolishing it, and it was therefore a de facto fixture intended to remain.
Residential Chattels and Fixtures in Summary
In summary, that hunting trophy in the picture we used earlier, is more likely to ‘belong’ to the land if it is firmly attached using cement, nails or screws. Removing it might also damage the surface of the building attached to the land. However, this would definitely not be the case if it rested on a table!
Perhaps though, the deciding factor might be the intention of the owner who located the hunting trophy there in the first place. Did they intend it to become a permanent feature of the building, or something they might take with them if they relocated.
Services Available From Avery Associates
Avery Associates offers three services in the Greater London area, extending out into the South of England:
Probate Valuations
Probate valuation reports to help executors assess inheritance tax obligations, and share chattels equitably among heirs.
Property Valuations
Property valuation reports to relieve executors of this time-consuming task, essential before distributing a deceased estate.
House Clearances
We clear hoarded houses, apartments, lofts or any property subject to probate or for any other reason.
Please contact us if we can be of assistance in any of these matters, and you would like a receive a free personal proposal. We believe our client reviews speak for themselves, and we will be delighted to assist you.
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