Valuing A Property For Probate

[Hymie]

I am the executor of a Will that includes a property requiring valuation for probate purposes.

I know the approximate value of the property, but do I need a professional valuation (such as a local estate agent or surveyor) to include with the probate submission – or will my estimate suffice?

I have tried the probate help line, only to be placed on indefinite hold.

I have obtained a few quotes from surveyors; interestingly they are quoting me around £250 to conduct a home-buyer’s survey, but that price becomes around £500 just to give a value for probate (no survey report).

Has anyone obtained probate, submitting their own property valuation, and if so was the value questioned?

[237SJ]

All you need is a probate evaluation from a local Estate Agent. They won`t charge for this.

[Buenchico]

You'll need to obtain an independent valuation (which rules out simply submitting your own figure). HMRC advise that an under-valuation by an estate agent could lead to the executors of a will facing penalties but such penalties would not be charged where the method of valuation was 'reasonable and proportionate'. Here's what the Society of Trust and Estate Practitioners advises its members:
http://www.step.org/probate-valuation

Remember that 'estate agent' is not a 'protected title' in the UK (unlike in many other European countries). Anyone can call themselves an estate agent, so you'd need to ensure that any valuation you got from an estate agent came from someone who could show that he really knew what he/she was doing (e.g. through membership of a relevant professional body).

[Buenchico]

PS:
Despite what I've just written, I've got no recollection of getting any formal valuation of my late father's house when I sought probate on his property 20 years ago. I'm fairly certain that I simply submitted my own figure (after looking in local estate agents windows to see what similar properties in the area were selling for) but I'm not sure that such a practice would be acceptable today.

[237SJ]

You don`t want to use the figure that local estate agents are using for sales. You want to value down for probate because it lessens the potential for inheritance tax. If you think that the estate won`t be subject to inheritance tax though, then a higher figure will be better because that will minimise the amount of capital gains tax that will be paid when the property is eventually sold.

[Hymie]

I should add that the total estate value will not reach the inheritance tax threshold (by a long way).

However there could be an advantage in submitting an inflated property value, thereby minimising the potential for capital gains tax on any subsequent sale.

[237SJ]

As I said, I would get an Estate Agent in. They know the score regards valuations for probate and they will know how to price the property realistically.

[Barmaid]

I would get 3 estate agents market appraisals and choose the average of all three. Unless the property is particularly unusual their valuations should be within the same ball park.

HMRC will not be too bothered if it is clearly an exempt estate.

Unless you are anticipating a sharp rise between probate value and sale, CGT shouldnt be an issue. If there are a number of beneficiaries who will benefit from the property there are ways of mitigating any such charge to CGT. An inflated price wont protect you from a CGT claim since if CGT becomes an issue the District Valuer will need to get involved.

[Hymie]

I have awarded Barmaid the best answer, because I will take her advice – however thanks to all of you who responded, giving useful advice/information.