House valuation for probate
08/07/2018
319
3 min read
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.
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.
Who can undertake probate valuations on property?
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
What are the issues when valuing a house 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
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.
What is the definition of 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.
Click to read an example Probate House Valuation Report (download PDF)
Do you need a house valuation for probate?
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.
Local to the property - RICS qualified valuers - Fast Availability
FREE Online Conveyancing Process for Buyers
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