How Do I Value a Property for Probate?

One of the questions I am often asked when consulted about an Estate is “How do I value a property for Probate?”.

The Inland Revenue’s guidelines state that you have to value all assets as if each item had been sold on the date the deceased died.  This is called the ‘open market value’.  It is best practice to instruct a Chartered Surveyor to prepare the valuation, and particularly where Inheritance Tax is payable, three valuations should be obtained.  The valuer should provide an open market value at the date of death and they should take into account the estate of repair of the property (which may decrease its value) and any features that might make it attractive to a builder or developer, such as a large garden or access to other land that is suitable for development (which may increase its value).

If there is a range of values for the property, we would adopt a value that is somewhere in between the highest and lowest values you have got.   If the property ultimately sells for more or less than the original valuation then you may need to correct the figure with the Inland Revenue.

Case law points out that if the property is going to change condition, then you need to have full evidence and a report of the condition prior to improvement, and although it is extremely difficult to get a busy district valuer round to have a look, where the valuation could later be disputed, every effort should be made to do so.

For advice in relation to the administration of an Estate, please contact me.

Nikki Beggan 
F.Inst.L.Ex.
Private Client Team 

0121 693 2222
nbeggan@tyndallwoods.co.uk