An explanation about Probate property Valuations and what’s involved
The person that has passed away and left a property will have left a will, within the will if a property has been left it will usually be the most valuable asset in their estate. The estate (property) will then need to be valued. It will need to be valued even if the beneficiaries are not planning on selling.
The probate property’s market value will be based on the ‘open market value’ This will give a good indication of what the property is worth if the probate property would be sold.
This would be the price it would be sold for if sold immediately at the time of probate. Obviously the price may move somewhat if the property isn’t sold straight away.
The transfer of property is normally the date the person passed away, How ever if the property was transferred as a gift within the 7 years before the date of death the transfer date would be the date the gift was given.
If the property is straight forward the representative for both executors and Administrators can provide a valuation of the property without getting professional assistance.
Although the representative should look at local estate agents with the same or similar properties also looking into the land registry is a good idea, that will show any houses in the area that have been sold and what prices they have been sold for, this gives a good indication.
Obviously repairs that need doing will affect the selling price of the property, also size of the garden additional buildings. Even so whatever price they decide on will have to be justified by the District Valuer.
Our advice would be to use a Chartered Surveyor to give an accurate price. The reason for this is there is a danger the house could be overvalued and this could result in additional inheritance tax. The HM revenue and Customs are much more likely to accept the valuation from a professional.