House Valuation for Probate
- A probate valuation considers what the property was worth at the date of death.
- Before applying for probate, you will need to work out if there is Inheritance Tax to pay. To do so, you will need a house valuation for probate.
- Capital Gains Tax (CGT) might be payable based on assets, i.e. the property, from the deceased's estate that have increased in value since the date of the death.
- 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.
- We can organise a house valuation for probate within 5 working days using our national panel of experienced probate valuation RICS surveyors. Call us at 0333 344 3234 (local call charges apply) for a quote or get in contact here.
Will or no will (intestacy)?
If a valid will exists, the executor(s) named in it usually initiate the probate process. The assets, including any property, are distributed according to the instructions in the will.
If there's no will, the next of kin will typically be appointed as the administrator. Assets are distributed according to intestacy rules which determine who inherits based on their relationship to the deceased.
Selling an inherited property for more than the probate value may result in a higher Inheritance Tax bill. On the other hand, selling it for less than the probate value could make you eligible for a tax refund. However, this refund can only be claimed if the property is sold within four years of the death. Find out more about how to sell a probate property.
Is a RICS 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-accredited 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 many other sudden tasks and issues that death entails, the valuation is often instructed 3 to 6 months after the demise.
What is the difference between a market appraisal and a valuation?
An estate agent's market appraisal, which is usually offered for free, provides a rough estimate of a property's value but is not considered an official valuation. A surveyor's valuation, though more costly, holds greater significance and is favoured by HMRC, particularly for complex or properties of higher worth.
The District Valuer Services (DVS) of HMRC are responsible for examining probate property valuations to ensure accuracy. If HMRC believes the valuation is incorrect, they will challenge it and may impose financial penalties on the executors.
Book a FREE 15-minute meeting* with a specialist probate solicitor.
They'll listen to your issue and suggest ways forward, including the costs, with no obligation to use our services after the free meeting.
- What are my responsibilities?
- What forms do I need to submit to HMRC?
- How do I get the title deeds?
- How much inheritance tax (IHT) is payable?
Do I need an official house valuation for probate purposes?
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 are 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 property's condition for valuation purposes only. If the property is in disrepair you may wish to undertake an additional defect survey such as a Level 3 Home Survey.
There are certain situations where you do not need to get a professional valuation for probate:
- 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 threshold.
How much does a probate house valuation cost?
Our fees for a house valuation for probate start at £399 INC VAT.
We have local, experienced probate valuation RICS surveyors throughout England and Wales who can provide a house valuation for probate purposes. Get a free online probate valuation quote below.
Valuing a house for probate: Who can do it?
RICS Surveyors and estate agents
The surveyor should be:
- A RICS qualified valuer (in addition to being a RICS qualified surveyor).
- Competent they can provide a probate property valuation with adequate experience working within the local area.
- Indemnified to provide probate valuations on property.
- Working in agreement with the Red Book RICS Valuation Professional Standards.
- Unrelated to and independent of the property and have no financial interest in it.
How do you value a house for probate?
You will first need an estimated figure. This includes the property value and 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 someone faces when instructing a RICS valuer for a probate valuation:
- Disputes between the executors/administrators on 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.
The RICS probate valuation method
The RICS surveyor will assess the property's market value on the date of death. This involves thoroughly inspecting the property, researching recent sales of similar properties in the area, and considering factors such as property condition, location, and potential for development.
The surveyor will then produce a detailed report outlining their findings and the calculated market value. This valuation helps in determining inheritance tax liabilities and ensuring a fair distribution of the deceased's estate.
Download SAM's example probate valuation reportOur RICS surveyors:
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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.
Caragh is an excellent writer and copy editor of books, news articles and editorials. She has written extensively for SAM for a variety of conveyancing, survey, property law and mortgage-related articles.
