House Valuation For Probate
08/07/2018
(Last Updated: 16/02/2023)
188
4 min read
Key Takeaways
- Before being able to apply for probate, you will need to work out if there is Inheritance Tax to pay. In order to do so, you will need a house valuation for probate.
- You will not need a valuation in certain circumstances, and are only responsible for getting a professional valuation if there is Inheritance Tax to pay.
- A probate valuation considers what the property was worth at the date of death.
Is a probate valuation different to a normal valuation?
A probate valuation of property is different from a normal property valuation as it needs to value the property at the date of death, not at the current market value.
With this type of valuation the RICS chartered surveyor needs to view the property's condition during a site visit and then look to find properties in a similar condition (where available) to support their opinion of the property's value as it was at the date of death of the owner.
As the executors or administrators need to value the property for inheritance tax purposes, they should look to instruct a surveyor as soon as possible after death. However, with funeral arrangements and the many other sudden tasks and issues that a death entails, the valuation is often instructed 3 to 6 months after the demise.
What is the difference between probate value and market value?
“The estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion".
For probate valuations the "date of valuation" is the date of death.
Do I need an official house valuation for probate?
You will need to get a probate valuation of property for several reasons:
- it is necessary when you apply for probate
- there's Inheritance Tax to be paid
- you need to work out if there's Capital Tax Gains to pay
A probate valuation is not a defect survey. The scope of work for a probate house valuation does not extend to identifying defects within the property. As part of the service, the surveyor conducts a site visit to review the condition of the property for valuation purposes only. If the property is in disrepair you may wish to undertake an additional defect survey such as a Level 3: Building Survey.
There are certain situation where you do not need to get a professional valuation for probate. These are the following:
- the property is left in the surviving spouse or civil partner's name
- the property is passed on to a charity or community amateur sports club
- the value of the estate falls below the £325,000 Inheritance Tax treshold
Who can undertake probate valuations on property?
RICS Surveyor
Estate agents
The surveyor should be:
- a RICS qualified valuer (in addition to being a RICS qualified surveyor)
- competent they can provide a property valuation with adequate experience working within the local area
- indemnified to provide probate valuations on property
- working in congruence with the Red Book RICS Valuation Professional Standards
- unrelated to and independent of the property and have no financial interest in it
How much does it cost to have house valued for probate?
Our fees for a house valuation for probate start at £399 INC VAT. We have local RICS valuers and surveyors throughout England and can provide a house valuation for probate purposes. Please call 0333 344 3234 (local call charges apply) or click the below link to get an online probate valuation quote.
RICS Surveyors | Fixed Fees | Same week availability | Access arranged
How do you value a house for probate?
You will first need an estimate figure. This includes the property value, as well as any money and other assets the deceased has left behind. You can use an online Inheritance Tax checker to see if there is any tax to pay. If there is, you will need a professional house valuation for probate.
The challenge a client faces when looking to instruct a RICS valuer for valuing a property for probate purposes are:
- Disputes between the executors/administrators as to how to pay for the valuation
- Finding a RICS valuer who undertakes probate valuations (some RICS valuers do not)
- the general condition of the property can mean that the current market rate of the property might not be able to be achieved
Frequently Asked Questions
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Written by:
Andrew Boast
Andrew started his career in 2000 working within conveyancing solicitor firms and grew hands-on knowledge of a wide variety of conveyancing challenges and solutions. After helping in excess of 50,000 clients in his career, he uses all this experience within his article writing for SAM, mainstream media and his self published book How to Buy a House Without Killing Anyone.
Reviewed by:
Caragh Bailey
Caragh is an excellent writer in her own right as well as an accomplished copy editor for both fiction and non-fiction books, news articles and editorials. She has written extensively for SAM for a variety of conveyancing, survey and mortgage related articles.
