RICS (Red Book) Probate Valuations – What You Need to Know

When dealing with an estate, property is often one of the largest assets involved. An accurate valuation may therefore be required for probate, estate administration and Inheritance Tax purposes.

At Navah Consulting, we regularly provide RICS (Red Book) Valuations for Probate Purposes, working with executors, families, solicitors, accountants and financial advisers.

What is a probate valuation?

A probate valuation establishes the open market value of a property at the date of death. The date is important as we’re not valuing the property based on what it is worth today, but what it would reasonably have achieved on the open market at the relevant date. Where some time has passed, we undertake a retrospective assessment using appropriate historic sales and market evidence.

Why might you need one?

A valuation may be required to establish the value of property within an estate and assist with probate and Inheritance Tax reporting. A formal RICS valuation can be particularly useful where the property represents a significant part of the estate, Inheritance Tax may be payable, or the property is unusual, dated, in poor condition or otherwise difficult to value. It also provides executors and their advisers with an independent, evidence-based opinion of value.

HMRC requirements

For Inheritance Tax purposes, property is generally considered on the basis of its open market value at the date of death. Where applicable, houses, land and buildings are reported to HMRC as part of the relevant Inheritance Tax documentation. HMRC can also refer property valuations to the Valuation Office Agency (VOA) for review. It is therefore important that the valuation is properly researched and supported by appropriate market evidence. Please note, at Navah Consulting we do not value belongings, only the property.

What is the process?

We first confirm the property, date of death, purpose of the valuation and interest being valued. One of our RICS Registered Valuers will then inspect the property, considering its size, accommodation, location, construction, condition and other features affecting value. We research comparable sales and market evidence relevant to the date of death, before preparing a formal RICS Red Book Valuation Report setting out our opinion of value and supporting evidence.

What about defects?

A valuation is not a building survey, but defects cannot be ignored where they are likely to affect value. Dampness, structural movement, roof defects, poor condition or substantial modernisation requirements may all influence what a purchaser would reasonably have paid. As Chartered Building Surveyors, we can also provide Defect Analysis where a particular issue needs further investigation to better understand its cause, extent and potential impact.

What if the property has already sold?

A subsequent sale can provide useful evidence, but it does not automatically determine the probate value. Market conditions may have changed between the date of death and sale, or the property itself may have been repaired or improved. The key question remains: what was the property reasonably worth on the open market at the date of death?

Who do we work with?

We regularly act for executors and personal representatives, private individuals and families, solicitors and law firms, accountants, financial advisers, wealth managers and trustees.

We can take instructions directly or work alongside other professional advisers dealing with the estate.

About Navah Consulting Ltd

Navah Consulting is a firm of Chartered Building Surveyors and Valuers that specialises in surveying services throughout Hertfordshire, Essex, Cambridgeshire, London, and Suffolk. 

We offer a full range of surveys and valuations, including the RICS Home Survey Level 2 (Home Buyer Report) and RICS Home Survey Level 3 (Building Survey). We’re also happy to advise on RICS Valuation, Reinstatement Cost Assessments and Defect Analysis for a range of purposes.

Our Contract Administration services help ensure your project is managed effectively from start to finish. 

Navah Consulting aims to provide all services in a straightforward, efficient and client-focused manner. We understand the importance of providing reports and services in a concise, jargon-free format, in a quick time frame. Check out our reviews page here. 

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