Valuing a Property For Probate

Dealing with Probate can be a difficult process and dealing with the house following a persons death brings it own challenges. Acquiring a Valuation for the property adds to the already extensive ‘to-do list’. So what is a Probate Valuation and how do I go about obtaining one?

Following an individuals passing their assets will firstly need to be valued in order to calculate the Capital Gains Tax on any assets that have increased in value since the death. Valuing the estate makes it possible to ensure that debts are paid and the estate is correctly distributed to the beneficiaries.

The gross and net values of the estate will need to be calculated. The Gross Value will involve identifying the total value of all assets. This value is prior to deducting mortgages, funeral expenses and debts. The net estate value is the gross estate minus liabilities, such as debts and funeral expenses, before Inheritance Tax exemptions have been applied.

Once these values are calculated an application for Probate can be made. 

Accurately calculating the value of the estate is particularly important because this determines whether the estate will be subject to Inheritance Tax.

Every estate has a tax-free allowance, meaning that anything under this limit (called the ‘threshold’) is not liable for Inheritance Tax. The current threshold for a non-taxable estate as set by HM Revenue & Customs is £325,000.

Personal Representatives of the deceased will be the ones responsible for the probate valuation of property and contents. This can include both executors and administrators. The Property and contents of the deceased usually make up the largest portion of the estate value, so it is easy to see how important obtaining the correct valuations becomes.

The House Value

The ‘House Value’, as it is commonly referred to, is regarded as its open market value, or OMV. As the term suggests, this is the value the property would reasonably be expected to fetch on the open market if sold to a willing buyer. The probate valuation should be in line with the date of transfer, which is usually the day the deceased passed away.

If you don't know the exact value of any item, and the value of the estate is likely to be less than £250,000 it's normally ok to use an estimated valuation figure. You should never guess at a value, but try to work out an estimate based on the information you have.

Local estate agents are the obvious choice for valuing a property, and at Harrisons Probate Property Solutions we can provide a Section 160 Inheritance Tax Compliant Valuation, Providing 3 Leading Estate Agent Valuations, we will arrange suitable times to attend and will oversee this process, freeing up your time to attend to other matters.

In instances that the estate is liable for Inheritance Tax it's a good idea to get a valuation from a RICS chartered surveyor instead. Harrisons Probate Property Solutions are able to provide a RICS surveyor with the experience and knowledge required to provide a valuation specifically for Inheritance Tax purposes, so it is more likely this valuation will be accepted by HMRC.

The property valuation is potentially subject to examination by the District Valuer Services (DVS) of HMRC to ensure that it is accurate. If they feel that the valuation is not correct, they will challenge this and request evidence to support the valuation given. If HMRC believes that the executors or administrators have been 'negligent' in how they valued the property, they could impose financial penalties. If you realise the valuation provided to HMRC is too low, you will need to update HMRC with the correct value.

At Harrisons Probate Property Solutions you are in good hands. We have a nationwide network of RICS Surveyors on hand to provide the right information offering you peace of mind.

At Harrisons Probate Property Solutions we don’t ever use one estate agent for a probate valuation, some may inflate the value of the property, providing you with an ‘asking price’ rather than a direct indication of the property’s Open Market Value. Our team are on hand to review any values provided and insure these are accurate for the purpose at hand.

Valuing the Whole Estate

When Valuing the other parts of a deceased estate you will need to take into consideration, Assets, Liabilities and Lifetime Gifts.



You will need an open market value on Assets, as if it was sold on the open market at the time of death.

Probate Assets usually include:

• Money in bank accounts
• property and land
• personal possessions
• business assets

You will need to make a list of all the deceased’s assets and debts, although you may not know this information.

A good place to start would be to look through Paperwork for the deceased. If you are not local to the property our team are on hand to assist and can perform a search of a deceased’s property and locate financial documents and forward them to you or your solicitor.

You will need to write to all the organisations you discover, asking for the value of the individual's asset or debt. Include a copy of the death certificate in each letter.

You should include in your search:

• banks and building societies
• pension providers
• companies the deceased held shares in or had investments with
• their employer
• organisations holding assets in a trust
• life insurance providers
• NS&I (Premium bonds)
• friends and family members, who may have received a gift

This can be a large and time consuming job. Organisations are on hand to assist with due diligence Financial Asset Searches. Harrisons Asset Search Solutions VERAFI Search, searches over 450 Banks, financial institutions, Investment companies and pension providers along with Share Registrars, The FTSE 350 Companies and Aquis to investigate share holdings for the deceased.

This search will also identify liabilities for the deceased such as:

• utility providers
• local council
• their mortgage lender
• loan or credit agencies

Valuing contents of the deceased property will also need to take place. First, make a list of any items that you think might hold value. This might include cars, jewellery or furniture. You can look online at how much similar items are being sold for, taking into account how the age and condition compares. If there's expensive jewellery which is no longer fashionable, it could potentially be worth more as scrap.

For more specialist items, such as antiques, valuable artwork or other collectibles, it's best to get a professional valuation. Harrisons Probate Property Solutions partnership network includes expert Antique Valuers, Auction Houses and even specialist car buyers that will purchase cars in any condition, meaning neither you or the estate will not need to pay for their removal.

Our specialist House Clearers are also on hand to value any items up to £500 and to empty the remaining contents of the property.

Speak to our expert team today on 01923 943499