After someone dies, probate is required in most scenarios. This refers to the legal process of dealing with a deceased person’s estate, including any property. The first step of probate is to value the estate to determine whether inheritance tax is due, which requires a house valuation. So, how many house valuations are needed for probate?
The number of property valuations required for probate will depend on whether you choose an estate agent valuation or an RICS-registered surveyor valuation. If you choose an estate agent valuation, these can be fairly inaccurate so it’s best to have three completed and take an average. However, because a RICS probate valuation is so accurate and highly regarded, only one is required.
Read on to learn more about the different types of house valuations for probate, which is the best option and the other required valuations.
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How Many House Valuations for Probate?
The number of house valuations you need for probate will depend on the type of valuation you get and who carries it out.
Estate Agent Valuations
One way to get your house valued for probate is through an estate agent. Most estate agents will offer free property valuations in the hope that you will use them if you decide to sell the property. Because estate agent valuations are often inaccurate, it’s best to get multiple valuations from different agents (at least three) and average the results.
However, using an estate agent’s valuation is not generally recommended for probate, especially for larger estates. This is because estate agents will provide you with the market value (the sale price an estate agent would hope to achieve based on similar properties in the area), rather than the probate value (a realistic valuation based on the property being offered on the open market at the time of death based on HMRC guidelines). Read more about the difference between these two types of valuations in our blog, ’What Is the Difference Between Market Value and Probate Value?’.
The only way to get an accurate probate valuation is to use a RICS-registered surveyor.
RICS-registered Surveyor Valuation
Also known as a Red Book valuation, a valuation from the Royal Institution of Chartered Surveyors (RICS) is the best option for probate. Because RICS valuations are much more accurate than estate agent valuations, you only need one. RICS-registered surveyors have an in-depth knowledge of the property and years of training and experience.
Which House Valuation Is Best for Probate?
According to HMRC’s official guidance, a professional probate valuation from a chartered surveyor is required for estates worth over £325,000. For estates worth less than £325,000 (or estates that are being passed in their entirety to a spouse or civil partner), an informal valuation from an estate agent may suffice.
However, an RICS-accredited valuation is still recommended for all probate estates because it is the most accurate.
Why Is It Important to Provide an Accurate Valuation for Probate?
The value of an estate (including property) determines how much inheritance tax is owed and needs to be paid to HMRC. An inaccurate property valuation can lead to penalties from HMRC.
All property valuations for probate can be subject to examination by the District Valuer Services (DVS) of HMRC to ensure they are accurate. If the DVS feel that a valuation is not correct, they can challenge the valuation and request evidence. HMRC can impose financial penalties if they feel that the probate administrators have been ‘negligent’ in their valuation of the property. Using an accurate RICS-registered probate valuation is the best way to avoid this.
How Many Valuations for Probate in Total?
The probate valuation of an estate should include everything the person owned at the time of their death, minus any debts. So in addition to a property valuation, you will also need to value other assets, including:
- Land.
- Personal possessions, such as cars, antiques, art and jewellery.
- Savings and investments, including money in bank accounts, stocks and shares, and bonds.
- Insurance policies and pensions.
Do I Need Professional Valuations for Other Assets?
The majority of other assets will not require a professional valuation. For example, free online valuations for cars are easy to obtain. According to HRMC, you only need to consider a professional valuation for single items worth over £1,500.
For unusual or high-value items, such as rare artwork or valuable jewellery, it is best to get a professional valuation from a specialist.
Each of these will need to be valued by a relevant expert and you won’t be able to get all of them in one place. For a property probate valuation, you can visit our Probate Valuations page for more information.
House Probate Valuations in London and the South-East
At Crest Surveyors, we understand how confusing, time-consuming and challenging the probate process can be, especially when also dealing with the loss of a loved one. We offer professional RICS-accredited valuations to ensure the property is accurately valued and avoid any unnecessary issues with the inheritance tax process.
All our probate valuations are completed by our experienced team of RICS-Registered Surveyors. We will work with you to guide you through the process during this difficult time. Our house valuation for probate prices starts from £450, including VAT.
Get in contact with one of our team members to receive a probate valuation quote or for more information about what is included in our service.
Probate House Valuations FAQs
What is a Probate Valuation?
A probate valuation is a calculation of the value of a person’s assets at the time of their death. This includes property, savings, investments and personal possessions. The probate valuation is used to determine whether an estate is liable for inheritance tax and how much is owed to HMRC. Read our blog, ‘What is a Probate Valuation?’, to learn more.
Do I Need an Official House Valuation for Probate?
Yes, an official house valuation is required for probate and inheritance tax purposes. Ideally, this should be completed by a RICS-registered surveyor to ensure it is accurate. The only exception is an estate is being passed to a spouse or civil partner in its entirety in which case there is no inheritance tax to pay. Our blog, ‘Do I Need an Official House Valuation for Probate?’, has more in-depth information.
What Is the Minimum Estate Value for Which Probate Is Needed?
Probate is not required for very small estates worth under £5,000 with no property. The other scenario when probate will not be required is when an estate is passed to a surviving spouse or civil partner.
Do Estate Agents Give Accurate Valuations for Probate?
No, most estate agents will not provide you with an accurate valuation for probate. They can provide an option on a property’s worth based on similar properties in the area, but they can not provide an accurate formal valuation. Some estate agents may inflate the value of a property and provide you with an ‘asking price’ rather than the open market value (OMV).
A formal probate valuation undertaken by a RICS-registered chartered surveyor is the best option to ensure the probate process goes smoothly.
Should You Get Your House Valued by More Than One Estate Agent?
Yes, whether you are getting a property valued for probate or another reason, it’s best to get two or ideally three different valuations if you’re choosing to go to an estate agent. You can then take an average of these three valuations. This is necessary as estate agent’s valuations are not as accurate as formal property valuations carried out by chartered surveyors.