Sorting Out Property Values for Probate

Valuing property is a key part of probate, and getting it right matters, especially when Inheritance Tax (IHT) might be involved. Sorting property values can feel like another hurdle, but this guide breaks it down clearly. Let’s get it sorted.

Why Accurate Valuation is Crucial

You need an accurate 'date of death' valuation for any property in the estate. This figure is vital for working out if Inheritance Tax is due. Get it wrong, and you could face headaches with HMRC down the line. Accuracy here saves trouble later.

How to Value UK Properties

You've got a few routes to determine the property's market value at the date of death.

1. Estate Agent Estimates

Contact a few local estate agents. They can give you written market appraisals based on their knowledge of the area. Aim for three estimates to get a solid average. This is often acceptable for simpler estates where no IHT is expected.

How: Ring up local agents, explain you need a probate valuation, and arrange viewings.

2. Online Research (Rightmove, Zoopla)

Check recent sales prices of similar properties in the same area on sites like Rightmove or Zoopla. This gives you a rough idea but isn't usually enough on its own for HMRC, particularly if IHT is payable. Use it as a starting point or a sanity check for agent estimates.

Resource: Rightmove, Zoopla

3. Formal RICS Valuation

For unquestionable accuracy, especially if the estate is likely to pay IHT or is complex, hire a chartered surveyor. They provide a formal written valuation that holds weight with HMRC. It costs more, but it provides peace of mind and defence against potential challenges.

How to Find a Valuer: Use the Royal Institution of Chartered Surveyors (RICS) 'Find a Surveyor' service online, or ask trusted local estate agents for recommendations.

Our Take: If IHT is even a possibility, get a formal RICS valuation. It's the safest bet to keep things straightforward with the taxman.

Dealing with Second Homes

Got a holiday home or buy to let property in the UK? The process is exactly the same as for the main residence. Use estate agents or a RICS surveyor local to that property to get an accurate valuation as of the date of death.

Handling Overseas Properties

Properties abroad add a layer of complexity.

• Local Expertise Needed: UK valuers can't usually assess overseas property. You’ll need to find a qualified valuer in the country where the property is located.
• Legal Differences: Be aware that property laws and taxes vary significantly by country. You might need advice from a legal professional familiar with that country's inheritance system.
• Currency: Valuations will be in the local currency. You'll need to convert this to Sterling (GBP) using the exchange rate from the date of death for the UK probate and IHT forms. HMRC provides official exchange rates.

Tip: Sorting overseas assets can be tricky. Don't hesitate to seek specialist help early on; it often saves time and stress in the long run.

Wrapping Up

Getting property valuations sorted correctly is a big tick on the probate checklist. Whether using local agents or a formal surveyor, the key is an accurate value reflecting the date of death.

You're making progress. With the valuations in hand, you’re a step closer to settling the estate. We're here to guide you through the next stage.