After a person passes away, their property will usually need a probate valuation to work out its open market value on the date of death. Getting a house valuation during probate is need as this figure is used when valuing the estate for Inheritance Tax and must be reported to HMRC as part of the probate process. The most reliable way to get an accurate house valuation for probate is to use a RICS Valuation Surveyor, as their reports are designed to be HMRC-compliant.
When someone you know has died, arranging a house valuation may be the last thing on your mind. However, before probate can be granted, the total value of the estate (including all property, possessions, savings and debts) has to be recorded, and the probate valuation of any property is a key part of this.
The process can feel overwhelming, and knowing who to trust for an accurate probate valuation is not always clear.
We can help you navigate this by connecting you with trusted professionals. In this guide, we break down what you need to know, including what a probate valuation is, who can carry out a house valuation for probate, whether you need an official valuation, and how to value an estate for probate overall.
Introduction to Inherited Property
Inheriting property is often both an emotional and administrative challenge, especially when you are coping with the loss of a loved one.
As a personal representative or executor, you are responsible for managing the deceased’s estate, which includes understanding the probate process and the importance of an accurate probate valuation.
The value of the inherited property must be established for inheritance tax purposes, as HMRC requires a clear record of the entire estate’s worth to determine how much inheritance tax is owed. An accurate probate valuation ensures you do not pay more inheritance tax than necessary and helps prevent future disputes with HMRC.
Dealing with inherited property can be complex, but understanding the valuation process is a crucial first step in managing the estate and fulfilling your legal and tax obligations.
If you would like professional support with the wider probate process, including valuations, you can compare surveyor quotes from regulated probate solicitors through Compare My Move.
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What Is a Probate Valuation?
A probate valuation is a type of valuation survey where an assessment of a property's open market value on the date the owner died. In simple terms, it is the price the property could reasonably have sold for at that time between a willing buyer and a willing seller.
When people talk about a house valuation for probate, they are usually referring to this same figure. It is used to:
- Work out whether Inheritance Tax (IHT) is due and how much might be payable.
- Provide a fair starting point for sharing the estate between beneficiaries.
- Set the baseline for any future Capital Gains Tax (CGT) if the property is sold later on.
- Show HMRC that the estate has been valued using realistic, evidence-based figures rather than guesswork.
Because of this, getting the probate valuation right first time can help reduce delays, questions from HMRC and disagreements within the family.
Do I Need an Official House Valuation for Probate?
In many cases, yes. If the estate includes a property and probate is required, the executor or personal representative is expected to use a realistic, evidence-based house valuation for probate rather than a rough estimate.
Relying only on guesswork or very optimistic estate agent figures might seem quicker and cheaper, but it can create problems later. An official probate valuation helps to:
- Comply with HMRC requirements – if a property is significantly undervalued, the estate could underpay Inheritance Tax. HMRC can investigate, charge interest on any shortfall and apply penalties in cases where they believe figures were careless or deliberately wrong.
- Reduce disputes between beneficiaries – a neutral professional valuation makes it easier for everyone to accept the figure used when working out their share of the estate.
- Protect the executor or administrator – you are responsible for reporting the estate’s value accurately. Being able to show that you relied on an independent professional can help demonstrate that you acted reasonably and in good faith.
For straightforward, low value estates that are clearly below the Inheritance Tax threshold, HMRC will sometimes accept figures based on estate agent valuations. However, where the estate is close to or above the threshold, the property is unusual, or there is any risk of disagreement, it is sensible to obtain an official house valuation for probate from a RICS Surveyor.
A probate solicitor can also advise you on what level of valuation is appropriate in your situation and when a formal RICS report is strongly recommended.
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Who Can Carry Out a Probate House Valuation?
When getting a house probate valuation, you have two options:
Surveyor (Recommended)
As a valuation is an essential part of your probate application, we recommend seeking the services of a qualified valuation surveyor. A RICS valuation, sometimes known as a Red Book valuation, is the most reliable and HMRC-compliant option for probate, helping to ensure accuracy and acceptance for inheritance tax purposes.
You should ensure they’re a RICS member. This means they must follow the RICS guidelines and have the necessary experience and qualifications. It’s an immediate validation of their knowledge in the industry.
Whilst this results in a cost of around £452 for the average UK property worth £292,000, it gives you and HMRC confidence that the valuation is independent and accurate, helping to avoid potential tax disputes.
Estate Agent (Not Recommended)
Since it’s free, you may be considering getting an estate agent’s market appraisal. However, this comes with risks.
A market appraisal for probate is an estimate of a property’s value based on recent sales of similar properties in the local area. They often can serve as a useful guide when preparing for probate valuation.
But an inflated valuation could lead to paying more inheritance tax (IHT) than necessary, while an undervaluation could result in HMRC asking further questions, charging interest on any extra tax due, and in serious cases applying penalties. Estate agent figures on their own may also not be enough where there is disagreement between beneficiaries.
If you choose to use estate agent valuations, it is sensible to:
- Ask for written valuations from more than one agent
- Keep a record of the property’s condition at the time of death
- Discuss with a probate solicitor whether this evidence is likely to be sufficient for your estate
Prices are based on our cost data, received directly from user feedback.
Is a Probate Valuation Different From Market Value?
A probate valuation should reflect the open market value of the property on the date of death. This is closely linked to market value, but there are some important differences to understand:
- Probate value is fixed at the date the person died. It does not change if local property prices rise or fall afterwards.
- Current market value is what the property might sell for today. This may be higher or lower than the probate value, especially if the market has moved or the property’s condition has changed.
- In practice, probate values can sometimes be lower than current asking prices, particularly if the property needs work or has been empty for some time.
HMRC are mainly interested in whether the valuation used for probate is realistic and supported by evidence, which is another reason why a professional RICS valuation is often recommended.
How Much Does a Probate House Valuation Cost?
There is no fixed fee for a probate valuation. Probate valuation costs depend on the size, location and complexity of the property, as well as the type of report you need. As a general guide:
- A typical RICS valuation for an average UK property is around £452.
- Larger, higher value or more complex properties (for example those with land, annexes or development potential) will usually cost more to value.
- Informal estate agent valuations are often free, but they may not be enough for higher value estates or where HMRC ask for formal evidence.
When comparing options, it is worth checking what is included in the fee, whether VAT is added, and whether the report is suitable to use as a probate valuation for HMRC purposes.
Why Do You Need a Probate House Valuation?
A probate house valuation is essential for tax purposes and legal compliance. If the deceased owned property and probate is required, all assets the person owned at the time of the person's death must be valued to determine how much inheritance tax must be paid. The valuation helps determine Inheritance Tax (IHT) liabilities and also plays a key role in calculating Capital Gains Tax (CGT).
The estate's value at the time the person died is the basis for tax calculations. Below, we explain the tax implications and the importance of a probate house valuation.
Inheritance Tax
To determine how much IHT needs to be paid, if applicable, you must carry out a probate valuation of the estate's assets, including the property. Before being given grant of representation, you’ll need to pay IHT. The current IHT threshold is set at £325,000, and you may be liable to pay 40% on any amount above this amount.
Calculate Capital Gains Tax
Capital Gains Tax (CGT) is different from IHT, in that it does not need to be paid before you apply for grant of representation.
Capital gains tax is calculated based on the difference between the probate value, at the time of inheriting, and the actual selling price of the property.
But, it is still worth bearing in mind that you need to know how much CGT might need to be paid.
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How to Value an Estate for Probate
While a house valuation is a key part of the probate process, it’s only one element of a full estate valuation. To apply for probate and determine any Inheritance Tax (IHT) liabilities, you must assess the total estate value. This involves valuing property and all of a person's assets.
This includes all assets, savings, debts, and liabilities. Only those with the legal right, such as executors or personal representatives, can carry out these tasks.
Identify Assets
The first thing you’ll need to do is to make a list of all the deceased assets, debts, and gifts to establish the full scope of the deceased person's estate. This can be anything physical such as cars, jewellery and artwork.
Liquid assets and debts will also need to be listed. So this would be any loans, credit cards, or money in the bank or stocks/shares.
Get a Probate House Valuation
As mentioned previously, if the deceased owned property your first step will be to get a probate house valuation, ideally through a RICS Surveyor. This is likely to form a large part of their estate, so is crucial to the estates valuation.
Contact Organisations for Asset Verification
You’ll need to contact the companies responsible for the assets of the deceased to verify the value of all of the person's assets. This gives you an accurate valuation of the estate as a whole.
Some of the institutions that you may need to contact include:
- Bank (incl ISA providers)
- Pension providers
- Life insurance
- Any company that the deceased has shares or investments in
Identify Debts & Liabilities
Outside of funeral expenses, you’ll have to work out how much debt the estate has to repay so that you know exactly how much IHT needs to be paid.
There are several institutions that you’ll need to contact to get the amount owed up to the time of death, these include:
- Banks for potential loans, credit cards and overdrafts
- Car Finance
- Utilities (including mobile phone and broadband providers)
- Mortgage providers or landlord
- Any personal debts owed to other companies (including contractors)
Consider Lifetime Gifts & Exemptions
Lifetime gifting is the act of giving assets, whether physical or financial to likely assignees within a lifetime. This is instead of leaving them in the will upon death.
This does come with tax implications as it can reduce the amount of IHT owed. Specifically, as it could keep the total estate below the £325,000 threshold.
Here are some of the scenarios:
- Each year you can give away up to £3,000 without it being added to the value of the estate, this can roll over up to £6,000 the following year if not used
- Gifts of up to £250 per year are also exempt from IHT. As long as the same beneficiary hasn’t received anything from another allowance
- Wedding/civil partnership gifts are exempt from IHT as long as they are the following amounts. £5,000 to a child, £2,500 to a great/grandchild or £1,000 to anyone else
Value Non-Property Assets and Chattels
For non-property assets you will need to consider both everyday items and higher value belongings. The appropriate figure for probate is the open market value, which is what the item could reasonably be sold for at the date of death.
In practice:
- Ordinary household items such as furniture, clothing and white goods can often be grouped together and estimated using second hand prices as a guide, especially where they are individually low value.
- Higher value items such as jewellery, antiques, artwork, collections or vehicles may need to be listed separately and professionally valued, particularly if they could affect the estate’s Inheritance Tax position.
Getting a property valued is more straightforward than contents. We tend to value personal possessions more highly due to sentimentality. Auction houses are a good option, as they will give a professional assessment of the item's value and what they would realistically sell for.
Looking at websites such as eBay, Facebook Marketplace, Gumtree, and Vinted can help with costs, but is not recommended.
Arranging all these valuations can be complex, so we recommend you use a solicitor.
Obtain a Death Certificate & Legal Documents
For the personal representative, this should be straightforward. You will need copies of the death certificate when reaching out to the companies holding debts or assets. This is because you’ll need to prove the person has died. This will be to either release funds or hold off on potential repayments while you go through probate.
Hire a Surveyor
An evaluation is an essential as part of your probate application, so you need make sure that you are picking the most qualified surveyor.
You should ensure they’re a RICS member. This means they must follow the RICS guidelines and have the necessary experience and qualifications. It’s an immediate validation of their knowledge in the industry.
You should also look into reviews from their previous customers. Location, efficiency and price are all important factors when searching for the right surveyor.
In some cases, a district valuer may review the property valuation to ensure accuracy and compliance with HMRC requirements.
Save money on your property valuation
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Used by over 1.8 million movers in the UK
How to Find a Probate Solicitor
Compare My Move connects users with solicitors who can assist with grant of probate applications and help you decide whether you need an official house valuation for probate. Simply compare probate services by filling in our probate comparison form to receive up to 5 quotes and save on your probate fees.
Before joining our network, all companies must pass our verification process. For solicitors, this includes being regulated by one of the following:
- Solicitors Regulation Authority (SRA)
- Law Society of Scotland (LSS)
- Law Society of Northern Ireland (LSNI)
- Council for Licensed Conveyancers (CLC)
- Institute of Chartered Accountants (ICAEW)
Working with a regulated probate solicitor can give you confidence that your probate valuation, estate figures and HMRC forms have been handled correctly, helping you to protect yourself and the beneficiaries during a difficult time.
