Today, the word ‘property’ usually brings to mind a house, flat, cottage, etc.
But it can also be used to describe ‘personal property’, i.e., belongings such as jewellery, vehicles, clothes, etc.
‘Chattel property’ falls into this latter category. But it has a slightly more nuanced meaning!
Read on to find out more.
What is a chattel property?
The term chattel property (often referred to simply as chattel) refers to movable personal property.
In other words, ‘chattel’ in chattel property distinguishes it (semantically and legally) from property, which can’t be moved.
This means chattel covers a broad range of things, for example:
- Mobile homes
- Household appliances
- Equipment
- Vehicles
- Furniture.
And much, much more.
So, anything that can be moved out of a house falls under chattel property.
Chattel property vs fixtures and fittings
‘Fixtures and fittings’ is a frequently used term in property that describes things permanently (fixtures) or temporarily (fittings) attached to a property.
(Many homeowners come into contact with the term when they fill out a TA10 from before moving house.)
Chattel property vs fixtures
Chattel property is different to a property’s fixtures, i.e., objects attached to its interior (such as floorboards, wiring, built-in wardrobes, etc.).
This is simply because fixtures are not moveable.
Chattel property vs fittings
Fittings in a house are a typical example of chattel property. However, not all chattel property is a fitting. Beds and wardrobes are two common types of fittings.
What is a chattel mortgage?
A chattel mortgage is a type of loan used to buy chattel property.
Chattel mortgage lenders typically require the chattel property to be used as collateral for its loan.
In other words, they can take away the chattel property from borrowers who fail to repay them.
A charge is registered at Companies House and any applicable asset registry. And there is usually a fee for early repayment.
How do you value chattel property?
Whether you intend to take out a mortgage for it, buy it outright, or sell it, chattel property should be valued.
Some independent valuers specialise in this area.
Remember that some examples of chattel property require specialist knowledge—for example, marine vessels and aircraft. So, you can’t go to a ‘typical’ property valuer for this.
To value a car, you can use a trade guide. A yacht broker can give you an insight on boats that you own. And auctioneers may have experience selling chattel property too.
If this is part of an estate, you must get chattel property valued during probate. You must get this opinion from an independent expert.
This ensures no questions about the estate’s value (and what inheritance tax you must pay).
Does chattel property go up in value?
It depends on what type of property it is.
Chattel property that loses value
For example, most -but not all- cars and internal fittings (furniture, appliances, etc.) are known to decrease in value.
Chattel property that gains value
On the other hand, circumstances can cause lead types of chattel property to become more valuable.
For example, some artwork, stamps, coins or vintage items will sometimes grow in value as they become rarer.
And machinery might become more valuable if there’s a shortage at any given time.
Can I include chattel property in a house sale?
Yes, you can include chattel property in your house sale if you want to.
A common example is when sellers include furniture as part of the sale.
It’s not guaranteed that this is part of the sale though, unless it’s explicitly stated.
A Fixtures and Fittings Form (TA10) should be completed when you sell your house. This will cover all fittings, such as curtains, furniture, appliances or rugs.
But other types of chattels will not be included in this form. You’ll need to state this separately and attach a price for negotiation.
Speak to your solicitor about doing this in the correct legal way, and then ensure your estate agent communicates this to the buyer.
