One of the first steps in the probate process is accurately valuing the estate to calculate the correct amount of Inheritance Tax (IHT). An estate includes everything someone owned at the time of their death, such as property, money and personal possessions.
Property is usually the highest-value asset in an estate, making it essential to obtain an accurate valuation from a qualified professional. A RICS probate valuation typically costs around £367.
You’ll also need valuations for other assets such as jewellery, vehicles, collectables, artwork and antiques.
Why You Need a Probate Valuation
Before applying for probate, the total value of the estate must be calculated to determine how much Inheritance Tax (IHT) is due. Every estate has a tax-free allowance of £325,000, with an additional £175,000 allowance if the main property is given to children or grandchildren.
If you are likely to pay IHT, a RICS Valuation Survey is strongly recommended. This can provide an accurate and defensible market value from the outset, helping to avoid HMRC disputes or investigations due to incorrect or estimated valuations.
Consequences of Incorrect Valuations
An undervalued property can lead to unexpected Capital Gains Tax (CGT) consequences. If a property is sold after probate is granted at a higher price than originally declared, CGT may be payable on the difference.
If the estate is minimal and below the tax threshold, an informal valuation (for example, from an estate agent) can be used.
Find Trusted Surveyors for Your Property Valuation
A RICS Valuation is only for valuing property. All other assets that make up the estate must be valued separately.
Auction House Valuation
Auction houses can provide valuations for a range of different items. Usually, this service (especially if it's free) is designed for auction sale purposes. If you don't plan on selling the items, you may want to consider hiring a specialist appraiser.
Bonhams hosts complimentary valuation events, in addition to a dedicated valuation service.
Costs for these valuations vary, depending on the company, the number of items and the time the valuation takes. Some specialist valuers can charge a £50 fixed fee, plus £100 per hour spent on valuing or researching.
Probate Solicitors
While probate solicitors cannot directly value items, they can provide guidance on getting items valued and any tax implications. On average, probate solicitors charge between 1.5 - 2.5% of the estate's total value for probate services. It is highly recommended that you use a solicitor to assist you with estate administration during the probate process.
Do Estate Agents Charge for Probate Valuations?
No, estate agents don't usually charge for valuations. However, most estate agents will value a property in the hope of gaining your business if and when you sell.
If you ask for a specific probate valuation from an estate agent, they may charge a fee, which will be at their discretion.
A RICS Valuation is generally more accurate than an estate agent’s valuation and complies with the RICS Valuation Global Standards.
Factors Influencing Property Valuation Costs
Here are some factors to keep in mind that can affect probate property valuation costs:
1
Size and Type of Property
Properties that are larger, expensive or more complex in any way are likely to have higher valuation costs. Commercial properties can be more complicated to value, which can be more expensive.
2
Geographic Location
Valuation costs fluctuate based on the location. For example, those carried out in London and other urban areas will be more expensive compared to smaller towns or areas.
3
Valuation Method
Informal valuations from auction houses, estate agents or online property portals are usually free. However, the price of a formal RICS Valuation will reflect the experience and knowledge the valuer has.
Find Trusted Surveyors for Your Property Valuation
It’s important to choose a property valuer who will best meet your probate needs. Here are some considerations to take into account:
1
Look for Professional Accreditation
Probate is a complicated legal process, so it’s essential to choose a professional valuer. It is recommended that you use a valuer who is RICS-accredited. You could also consider an RPSA-registered firm.
2
Check For Previous Probate Experience
A valuer with experience in probate properties is recommended. It is especially useful if they have experience with your type of property and are familiar with the local area and property market.
3
Read Their Customer Reviews
Previous customer reviews are one of the best ways to get an idea of the service a company provides. Ensure you check their website, social media and any review sites such as Trustpilot while researching a valuer.
4
Review Prices From Qualified Valuers
Speak to a few qualified valuation providers before you decide. Ask what is included, when you will receive the valuation and whether they have experience with probate properties like yours.
This helps you understand the likely cost and choose a valuer who fits your needs.
Find a Probate Valuation Surveyor
Whether you are an executor of the estate or have been selected as administrator, you will need to ensure the estate is valued accurately. This includes any property that was owned by the individual who has passed.
During what can be an emotional and difficult time, we want to make the process as easy as possible for you. We can connect you with up to 5valuation surveyors when you complete our quick form.
All our surveying companies have in-depth market knowledge and have passed our strict verification process. We only work with RICS-registered valuers, ensuring they follow the RICS Red Book Valuation, the industry standard for valuations.
FAQs
If you use a surveyor for your probate valuation, these costs must be paid upfront. However, as with any other probate-related costs, it is possible to receive the funds back from the estate after the probate process has been completed.
If the property was owned as tenants in common, a valuation will be required to determine the deceased's portion of the value.
Where a person's estate passes to a spouse by the Right of Survivorship, the surviving spouse may be exempt from IHT, and a valuation may not be required.
According to Crest Chartered Surveyors, a probate property valuation takes between 30 minutes to two hours. The valuation report is usually delivered within 6 working days.
Valuing all of the deceased person's assets can take anywhere from a few days to weeks depending on the volume of items and whether specialists need to be consulted.
