Probate Valuations – How to Navigate
Amidst the emotional turmoil and grief that comes with navigating probate, there are often practical and legal matters that need to be addressed, including a probate valuation of the deceased’s property, if one exists. This is necessary for settling the estate and ensuring compliance with Inheritance Tax (IHT) regulations. Understanding the probate valuation process can help ease some of the stress during this difficult time, so here we provide clarity and guidance on what needs to be done.
Getting a Probate Valuation
There are different ways to obtain a probate valuation. In some cases, an executor will employ the services of RICS-certified surveyor, but in many cases, an experienced estate agent will be able to provide an open market valuation (OMV). Similar to a formal valuation, an OMV is a realistic estimate of what the property would sell for on the open market, under normal conditions, using comparable and relevant sales evidence. This differs from an estate agent’s usual ‘market appraisal’, which considers the maximum potential selling price.
The team at DOMVS not only has the professional experience to provide a probate valuation, but also has plenty of empathy (it’s one of our core values), meaning we can give you the most appropriate support throughout. Importantly, we can act quickly and prepare the required documentation in a timeframe to suit your needs.
How is a Probate Valuation Different?
A probate valuation determines the value of a deceased person’s property for the purpose of calculating inheritance tax. Most importantly, the probate valuation must reflect the open market value of the property at the date of death. If time has lapsed, the valuer will need to retrospectively value the property. It’s important to note here, that if the property sells for significantly more than the original probate valuation, HMRC may seek to recover the IHT’s discrepancy. For this reason, the valuation should always be representative.
Selling a Probate Property
A grant of probate is needed before a sale can complete, however, the marketing of a property can start before this has been authorised. Probate house sales can be more convoluted for this reason, but it needn’t be a barrier to a positive outcome. As long as the right agents are acting on your behalf a probate sale shouldn’t be any more protracted than a non-probate sale. At DOMVS, our sales team are supported by a sales progression team, who have dealt with many probate sales in the past and have a good understanding of how to support the process.
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If you are in the process of handling an inherited property and need additional support, our friendly team can talk you through the process sensitively and effectively. Call us to discuss your options or start the process with a free valuation of your property.
