Introduction
If someone dies who owned a house or flat, finding out how much that property is worth is an important step in the UK probate process.
If the person owned property you will almost certainly need to go through the probate process and part of this is probate property valuation. Getting this right is important. An incorrect valuation can delay probate, trigger questions from HMRC, or lead to tax issues later on.
This guide explains:
what property valuation for probate is
why it matters
how it works in the UK
how to avoid costly mistakes
What is property valuation for probate?
A property valuation for probate is an assessment of how much money a property was worth on the day the person who owned it died.
This valuation is used to:
calculate the total value of the estate
determine whether inheritance tax is due
complete probate and inheritance tax forms
support the legal estate administration process.
This initial valuation is not the same as an estate agent’s “asking price” or the price the property might sell for later. Probate valuation is about finding out what is a fair market value at the time of death.
Why is probate property valuation so important?
1. It affects inheritance tax
In the UK, inheritance tax is charged at 40% on estates above the available threshold (after allowances). In many cases the value of someone’s house makes up the largest part of their estate.
If there are mistakes in inheritance tax calculations it can mean that you:
pay more tax than you need to
underpay tax, and face penalties or interest later on.
2. HMRC can challenge the valuation
HMRC routinely reviews probate valuations to check that they are reasonable. This often happens when:
the property is sold shortly after death
the declared value appears low
local sale prices of similar properties suggest the house or flat might be worth more
If HMRC disagrees with the valuation they can open an enquiry. This can delay probate, and add stress during an already difficult time.
3. It protects executors and administrators
Executors have important legal duties. They must act in the best interests of the estate, and may be personally liable for any mistakes.
Using a proper house valuation for probate will help protect executors. If the valuation is later questioned, they will be able to show that the valuation was reasonable and based on good evidence.
When do you need a property valuation for probate?
If someone who has died owned property, either on their own or with another person, you will need to get a property valuation.
Even if you think the value of the estate will be below the inheritance tax threshold, a probate valuation is still important.
It provides an official record of the property’s value on the date someone died.
It provides evidence needed for the inheritance tax calculations.
It’s used when declaring the estate’s value in a probate application
It may be needed later, for example when calculating capital gains tax if the property is sold in the future.
What is the “basis of valuation” for probate?
In the UK, the basis of valuation for probate is the open market value at the date of death
This means:
the price the property might reasonably have sold for
between a willing buyer and seller
on the open market
on the day the person died (not before or after).
It assumes:
normal market conditions
reasonable time allowed for marketing
no forced sale.
The valuation should be based on the property’s condition at the time the person died, even if it is later renovated or improved.
How to value a house for probate in the UK
There are several ways to get a probate property valuation.
1. Estate agent valuations (often free)
Estate agents can provide written valuations based on the sale of other similar houses or flats in the area. This is common for smaller estates and where it’s unlikely the estate will have to pay inheritance tax.
Pros:
Quick and free.
Cons:
Estate agent valuations can be optimistic if based on a suggested asking price, which may differ from the realistic sale price in your area.
It can be difficult for an estate agent to accurately value a unique property, especially where there are no other similar properties in the area.
If HMRC challenges the valuation, an estate agent valuation (especially if there is only one) is not as easy to defend as a valuation from a qualified surveyor.
It’s best practice to get at least three independent valuations and take the average.
2. RICS-qualified surveyor valuation (formal valuation)
A RICS probate valuation is prepared by a chartered surveyor. It is often recommended where:
the property is unique and hard to value
inheritance tax is likely
the property value is high
executors want maximum protection.
Pros:
Highly credible with HMRC.
Detailed, and based on objective evidence and expertise.
Reduces risk of disputes.
Cons:
There is a cost involved.
3. Online valuation tools
Online tools can provide a rough guide to the value of a property. However, online valuations should not be relied upon for probate or inheritance tax calculations.
In particular, an online valuation cannot:
reflect the condition of the house or flat
cope with unusual properties, or local nuances.
How much does a probate valuation cost in the UK?
The cost of getting a house valuation for probate varies depending on the type of valuation and type of property.
Estate agent valuation: usually free
RICS probate valuation: typically £250–£1,000+
While professional valuations cost more upfront, they can save money and stress and help avoid later disputes.
What happens If a house sells for more than the probate value?
Sometimes a property can sell for more than the probate value. Probate can take many months and house prices can rise in that time. If a property sells for significantly more than its probate value, HMRC may:
review the original valuation
ask for evidence supporting it
reassess inheritance tax.
If HMRC decides the probate valuation was too low, additional tax, interest, and sometimes penalties may be payable.
Using a reasonable, well-supported valuation from the start can help prevent this.
Capital Gains Tax implications
If a property sells for more than the valuations but HMRC does not challenge the inheritance tax position, a higher sale price can still have tax implications. Any increase in value between the date someone dies and the eventual sale may be treated as a capital gain of the estate or beneficiaries. This may sometimes mean the estate will have to pay Capital Gains Tax, depending on allowances and circumstances.
Because every estate is different, it is always sensible to seek professional advice to understand how the rules apply in your specific situation.
What if the house sells for less than the probate value?
Sometimes a house or flat may sell for less than its probate valuation. This can happen when market conditions change, or the sale takes place many months after the date of death. In most cases, this is not a problem.
Selling for less does not automatically mean the valuation was wrong. A probate property valuation reflects the property’s open market value on the date someone died, and not what it eventually sells for. Many factors can affect the eventual final price including:
changes in interest rates
local market slowdowns
the condition of the flat or house deteriorating (especially if left empty and not maintained)
urgent or limited marketing.
HMRC generally accepts that sale prices can differ from probate values, particularly where there is a clear time gap or evidence of changing market conditions.
Can inheritance tax be reclaimed if the property sells for less?
You can sometimes claim back some inheritance tax if you paid on the basis of a valuation, and the house eventually sells for less.
The estate may be able to claim loss on sale relief where:
the property is sold within four years of the date of death
the loss is more than the lower of £1,000 or 5% lower than the probate value
the sale reflects the best price reasonably achievable on the open market.
When reviewing a claim, HMRC may also consider factors which may have led to a lower sale, such as:
whether the buyer had any prior interest in the property
whether the buyer had some other involvement in the estate
whether there were changes, damage, insurance claims, or special rights affecting the property between the date of death and the sale.
If the claim is accepted, HMRC may refund some of the inheritance tax paid.
What are the most common mistakes people make when arranging property valuation for probate?
When handling property as part of estate administration, common mistakes include:
using a guessed, inaccurate or outdated valuation
relying on a single optimistic estate agent estimate
confusing probate value with sale price
forgetting the valuation date is the date that someone died
failing to keep written evidence.
Good record-keeping and professional support can make the probate process smoother.
Frequently asked questions about valuing a house for probate
Do I need an official house valuation for probate?
There are some unofficial tools you can use to get a valuation but they come with drawbacks. Online tools can provide a rough guide to the value of a property. An online valuation can’t reflect the condition of the house or flat or cope with unusual properties, or local nuances. At Trustestate we strongly advise you not to rely on online valuations for probate or inheritance tax calculations.
How do you value a house for probate?
You value a house based on its open market value at the date of death. This is usually done using estate agent valuations or a RICS-qualified surveyor’s probate valuation.
How much does a probate valuation cost in the UK?
Estate agent valuations are often free. Formal RICS probate valuations typically cost between £250 and £1,000+, depending on property type and complexity.
What is the basis of valuation for probate?
The basis of valuation is the property’s open market value on the date that the person owned it died. The valuation should reflect its condition and the market at that time.
What happens if a house sells for more than probate value?
If a house sells for more than the probate valuation, HMRC may review the original valuation or Capital Gains Tax could be due. If they believe it was too low, additional inheritance tax, interest, or penalties may be charged.
Trustestate can help
Dealing with property after someone dies can be a challenging and overwhelming part of the probate process. Trustestate can help. We offer a simple, streamlined service with expert support at every stage. Book a free cal with one of our experts to find out more.
What we offer
Use our Probate and estate administration service and we’ll manage every stage of the process. We’ll take over all the admin, value the estate, apply to the court for probate, and share everything out.
Or if the estate is simple, and you have time, you can use our Grant of Probate only service, and we’ll apply for probate using information you provide.
Whichever service you choose, you’ll get dedicated advice every step of the way, and an online platform to keep track of everything.
