Do I need to get house valued for probate?

If you are applying for probate and there is property in the estate, you’ll need to conduct a probate property valuation. You need to value the estate to know if there is any inheritance tax (IHT) to pay. Our Residential Property Valuations can be carried out across London.

How much does a house valuation for probate cost?

Whoever you decide upon, estate agent, solicitor or chartered surveyor, you should expect to pay a fee which may be a percentage of the total value of the estate valued. This may be between 1\% and 5\%. Generally, charges are based on the peculiarity of your property as every valuation need is unique in its way.

Do you have to value everything for probate?

Valuing parts of the estate for probate Assets need to be valued at their open market value. This is the price the asset might reasonably fetch if it was sold on the open market at the time of the death. This represents the realistic selling price of an asset, not an insurance value or replacement value.

What happens if the house sold for more than probate value?

Capital Gains can also become an issue if the administration process is prolonged and the final sale price is higher than the probate value. In short, if the property is sold for more than the initial valuation, you could be liable for Capital Gains Tax as well.

Is probate value the same as market value?

Often in an unpleasant way. The difference between Probate Value and Market Value is: A Probate Value has been obtained in a way acceptable to HMRC for establishing what inheritance tax is due. Market value is often a broader estimate gained by reference to other sales of similar property or possessions.

What is the difference between probate value and market value?

What if a house sells for less than probate value?

If the sale proceeds are less than the probate value, the estate may have paid inheritance tax on a value that was never realised. However, the tax legislation provides for a specific inheritance tax relief where there is a loss on the sale of the land.

What if house sells for more than probate value?

What happens if house sells for more than probate value?

If the property is sold soon after Probate is granted and the sale price is more than the figure submitted for probate, HM Revenue & Customs may try to substitute the sale price instead of the previously submitted figure and recalculate the IHT liability.

Who values a house for probate?

The executor or administrator of the estate is usually responsible for valuing the estate and applying for probate. To value a house, you can make an estimate by searching for the price of similar properties online or getting estate agents to value it.

What happens if house sells for less than probate value?