A probate valuation is an evidence-based opinion of a property’s market value at the relevant valuation date, usually the date of death, to support estate administration and inheritance tax reporting. Our RICS-qualified valuers prepare independent inheritance tax valuations using comparable market evidence and clearly stated assumptions.
Sterlingworth Surveyors is registered and regulated by the Royal Institution of Chartered Surveyors (Firm Registration Number 850747). Each RICS probate valuation is prepared in line with RICS Valuation – Global Standards (the Red Book).
We understand a valuation is often needed at a difficult time. We keep the process straightforward and explain the report in plain terms.
A probate property valuation records what a property was worth on the open market at the date of death. Executors, or administrators where there is no will, use it when valuing the estate, working out whether inheritance tax is due and completing the forms HMRC requires.
For inheritance tax, property is valued at the price it might reasonably be expected to fetch if sold on the open market at the date of death. It is not today’s asking price, and it is not an insurance or rebuilding figure.
A property valuation for probate is usually needed whenever a house, flat, land or a share in a property forms part of an estate, even where no inheritance tax is expected, because the estate has to be valued before applying for probate and its total value decides whether tax is due. Thresholds and reliefs change, so check current HMRC guidance or ask your solicitor or accountant.
Inheritance tax is worked out from the values executors report, so HMRC expects those values to be accurate.
HMRC can ask the Valuation Office Agency to check a property value. A District Valuer may review the figure and discuss it with the executors’ authorised representative. If a reported value turns out to be wrong, the estate may have more tax to pay, and current HMRC guidance explains when interest and penalties apply.
No valuer can promise that HMRC will accept a figure. A well-evidenced report shows how the value was reached, which comparable sales were used and what was assumed, so any questions can be answered from the evidence.
Yes. Most probate valuations are retrospective, because the inspection takes place some weeks or months after the death but the value is given at the date of death. The valuer relies on market evidence from around that date rather than today’s market.
The valuer notes the property’s condition, size and layout, then considers whether anything has changed since the date of death, such as repairs or redecoration. Information from the executors about its condition at that date is taken into account, and the report states any assumptions made.
A date of death valuation can still be prepared after a property has been sold or refurbished, using records such as photographs, sale particulars and floor plans alongside comparable sales at the date of death. What can be done depends on the records available, and the report explains the evidence and any limitations. If the property sold on the open market around the time of the death, the sale price may itself be relevant evidence.
Where the person who died owned a property with someone else, the valuer normally values the whole property first. How the deceased’s share is then valued depends on how the property was owned and who the other owners are.
A share can be worth less than the matching proportion of the whole, because a buyer of a share would not have full control of the property, so a discount is sometimes applied. Whether one applies, and its size, depends on the circumstances, and different rules apply where the property was owned with a spouse or civil partner.
Whether the property was held as joint tenants or tenants in common is a legal question for your solicitor. We report on the basis set out in your instructions.
The valuer inspects the property, researches comparable sales around the date of death and forms an opinion of market value at that date. The report explains how the figure was reached.
It helps to have the following to hand:
Access can usually be arranged through an executor, a family member, a solicitor or a key holder.
You receive a written valuation report that sets out the opinion of value and the evidence behind it. A report of this kind usually covers:
They answer different questions. An estate agent’s appraisal usually suggests a marketing price for selling now. A probate valuation gives an independent, documented opinion of market value at the date of death.
| RICS probate valuation | Estate agent market appraisal | |
|---|---|---|
| Purpose | Estate administration and inheritance tax reporting | Advice on marketing the property for sale |
| Valuation date | The date of death, or another date in the instructions | Usually the current market |
| Who prepares it | A RICS-qualified valuer | An estate agent |
| Evidence | Comparable sales analysed and set out in the report | Varies; often a short letter or email |
| Independence | Independent of any sale | The agent may hope to be instructed to sell |
Executors decide how to value the estate. Whichever route they choose, HMRC expects the figure to reflect market value at the date of death.
Executors are responsible for valuing the estate, reporting it to HMRC where required and paying any tax due, often with help from a solicitor or accountant. Our role is limited to the property: we provide and explain the valuation, but we do not give tax or legal advice.
You can contact us directly, and you can share the report with the estate’s solicitor or accountant.
You can instruct us on behalf of the executors. Tell us the valuation date, the property details and any points to cover, such as a share in jointly owned property. See our services for solicitors.
When an inherited property is sold, its value at the date of death is generally the starting point for working out any capital gains tax on the increase since then. If no inheritance tax was payable, that value may not have been formally settled for tax at the time, so a well-evidenced probate valuation remains useful at sale. An accountant or tax adviser can explain how this applies to you.
We also provide capital gains tax valuations in other situations, such as a value at an earlier acquisition date, and valuations for the Annual Tax on Enveloped Dwellings (ATED), which can apply to UK residential property owned by a company, a partnership with a company as a partner, or a collective investment scheme. The owner’s tax adviser can confirm which valuation dates apply.
The fee depends on the property and on the valuation required. The main factors are:
We will confirm our fee before you instruct us.
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Not in every case, but it is often sensible. Executors must report property at its market value at the date of death, and HMRC can ask the Valuation Office Agency to check it. A valuation by a RICS-qualified valuer gives an independent, documented figure with the evidence behind it. Your solicitor or accountant can advise on your estate.
A valuer inspects the property where possible, then analyses sales of comparable properties around the date of death to reach an opinion of market value at that date. The report sets out the evidence and any assumptions, so the figure can be explained if queried.
Yes. Most probate valuations are given at the date of death, even though the inspection happens later. The valuer uses market evidence from around that date and allows for any changes since. If the property has been sold or altered, a retrospective valuation can be prepared from records and comparable sales.
No valuer can guarantee that HMRC will accept a value. HMRC can refer property values to the Valuation Office Agency, where a District Valuer may review them. A professional valuation supported by clear comparable evidence helps executors show how the figure was reached and answer any questions.
The main evidence is sales of similar nearby properties around the date of death, adjusted for differences in size, condition, tenure and location. The valuer also considers market conditions at that date, the inspection and information from the executors, such as work carried out since.
The whole property is normally valued first. A share can be worth less than the matching proportion of the whole, because a buyer would not have full control, but whether a discount applies depends on who the other owners are and how the property was held. We report on the basis set out in your instructions.
Generally, yes. When an inherited property is sold, the value at the date of death is usually the starting point for working out any capital gains tax, so a well-evidenced probate valuation is useful later as well. An accountant or tax adviser can explain how this applies to you.
Tell us about the property, the date of death and who is handling the estate. We will explain what the valuation involves and confirm our fee before you commit.
We carry out probate and inheritance tax valuations across London and the South East.
Probate valuations are one of our residential valuation services. Where an estate includes shops, offices or other commercial premises, see our commercial property valuation service.
