House Valuation for Probate Purposes: Houses, Flats and Land

A house valuation for probate purposes is the figure you report to HMRC and the Probate Registry for any property in the estate. It is not the same as an estate agent’s marketing appraisal, and getting it wrong is one of the easier ways for an executor to create a problem for themselves.

A note on the word “house” before we start. The search term is house valuation, but the rules apply to every kind of property and land the deceased owned: flats and leasehold, maisonettes, bungalows, shared ownership, park homes, agricultural land, commercial premises, garages, paddocks and land with no building on it at all. Some of those need a very different approach from a three-bedroom semi, and this guide covers them.

This article applies to England and Wales.

What a probate valuation actually is

Under section 160 of the Inheritance Tax Act 1984, the value of any asset is the price it might reasonably be expected to fetch if sold on the open market at the date of death.

That is a hypothetical sale on one particular day, not a forecast of what the property will achieve when you get round to marketing it. Three things follow:

• The date is fixed. If prices rise or fall afterwards, the reported figure does not change.
• No discount for selling everything at once. Section 160 says expressly that the price is not to be assumed to be reduced because the whole property is placed on the market at one and the same time.
• Selling costs are not deductible. Estate agent fees and conveyancing come out of the proceeds. They do not reduce the valuation.

This is why a free market appraisal, given to win your instruction and framed around an asking price today, is not automatically the number HMRC has asked for. It can be, if the agent is told what is actually required.

Who should carry out the valuation?

There is no legal requirement to instruct a professional, and no rule that a probate valuation must be a RICS Red Book report. What the law requires is that personal representatives take reasonable care.

HMRC’s own guidance is that unless the personal representatives are easily able to determine the market value themselves, it is entirely appropriate for them to obtain a professional opinion of value. It also expects you to instruct that person properly, on the open market value basis at the date of death under section 160, and to question advice that does not on the face of it meet that requirement.

It is worth knowing the other half of HMRC’s position, because a lot of guidance leaves it out. HMRC’s Inheritance Tax Toolkit says that for assets of material value personal representatives are strongly advised to instruct a qualified independent valuer, and that for houses, land and buildings the valuation should meet RICS or equivalent standards. Advice is not obligation. But on a property of any real value, a professional valuation is the direction HMRC itself points in.

A chartered surveyor

A RICS Red Book valuation is the most defensible evidence available. It is a written report by a qualified valuer, prepared to a recognised professional standard, and if HMRC queries your figure you can refer them to the person who produced it.

It costs more than the alternatives, and the fee reflects the complexity of the property. It is worth it where inheritance tax is in play, where the value is near a threshold, or where the property is anything other than ordinary.

An estate agent

An estate agent’s written valuation is acceptable and often free. The critical point is the instruction: ask for the open market value at the date of death, in writing, and say that it is for probate. An appraisal of what the property would fetch if listed next week is a different figure and it is not what you need.

Agents also work on a no-liability basis and their appraisals are usually disclaimed as not being formal valuations. That is fine for a modest, clearly non-taxable estate. It is thin cover on a property worth several hundred thousand pounds.

Valuing it yourself

You can, and for a straightforward property in a street full of near-identical houses it may be perfectly reasonable. Work from recorded sale prices of genuinely comparable properties that sold around the date of death, not from portal estimates. An automated online valuation is a model’s guess, not evidence, and you are the one signing the declaration.

Keep whatever you rely on. Printouts of comparable sales, the date you took them, and a note of why you settled on the figure you did.

Two things not to do

Do not average three agents’ valuations. You will see this advised, including on pages that ought to know better. Section 160 asks for a single open market value, and an average of three opinions is a figure nobody has actually given. If HMRC queries it, one properly instructed valuation is a far stronger position than a mean of three appraisals. Getting more than one opinion is sensible, and HMRC’s toolkit says as much. Averaging them is the part that does not work.

Do not deliberately undervalue. It rarely saves anything. The date of death figure becomes the base cost for capital gains tax, so a low number simply moves tax from one place to another, and it removes your reasonable care defence if HMRC takes an interest.

Valuing different types of property

Most guidance on this subject describes a freehold house and stops. The valuation exercise is genuinely different for other types of property, and the differences are where estates go wrong.

Freehold houses and bungalows

The most straightforward case. Comparable sales around the date of death, adjusted for size, condition, plot and any material differences. This is the scenario where a competent estate agent valuation is usually adequate.

Flats and leasehold property

This is where a free appraisal is most likely to mislead you, and where the biggest errors happen.

The unexpired lease term drives the value. Under current law a lease with fewer than around eighty years to run is materially harder to sell and more expensive to extend, and the effect on value can run into six figures on an otherwise ordinary flat. Find the lease length before you accept anybody’s number. Leasehold valuation reform is legislated but not yet in force, so check the position at the time rather than relying on an article.

Also check the ground rent, which on some modern leases escalates in a way that makes a flat close to unmortgageable, any service charge arrears or outstanding major works bills, and whether the building has cladding or fire safety issues. Any of these can move the figure substantially and none of them shows up in a drive-by appraisal.

Maisonettes and share of freehold

A share of freehold flat still has a lease, and the lease term still matters even though the leaseholders collectively own the freehold. The share of freehold is usually a small addition to value rather than a transformation of it. Establish what the deceased actually owned: the leasehold interest, a share in a management company, or both.

Shared ownership

Where the deceased part-owned through a housing association, the estate owns only the percentage equity, and the valuation is of that share. The lease will set out how the share can be sold or staircased, and the association usually has nomination rights over a resale. Read the lease before assuming the estate can simply sell on the open market.

Park homes

A park home is generally a chattel sited under a pitch agreement rather than an interest in land, so it is not property in the ordinary sense at all. The site owner is typically entitled to a commission of up to 10% on a sale, which affects what the estate will realise. Valuations here are specialist and an ordinary estate agent will not have the comparables.

Property that was let at the date of death

You value the landlord’s interest subject to the tenancy, not the vacant possession value. A tenanted property is worth less than an empty one, and how much less depends on the tenancy and how readily possession could be recovered.

That calculation changed on 1 May 2026. Under the Renters’ Rights Act 2025 there are no fixed-term assured tenancies, all assured tenancies are periodic, and section 21 is abolished. A landlord who wants possession in order to sell relies on Ground 1A, which cannot be used until the tenancy is twelve months old and then requires four months’ notice. A purchaser therefore has to assume a longer and more certain wait for vacant possession than before, which feeds directly into the discount.

There is also Ground 7, which deals with the death of a tenant, and it carries its own time limits. If the estate is the landlord, our guide to renting out a property during probate sets out the current regime.

Agricultural land and farm buildings

Agricultural property is valued on a different basis and can attract agricultural property relief. A farmhouse is a recurring problem area, because its open market value to a non-farming buyer can far exceed its agricultural value, and only the agricultural value attracts the relief. Note also that from 6 April 2026 agricultural and business property relief give 100% relief only on the first £2.5 million of qualifying assets per person, with 50% above that. Do not attempt this one without a valuer who does agricultural work.

Commercial and mixed-use property

Commercial property is usually valued on the income it produces and the yield a buyer would accept, rather than by comparison with neighbouring sales. Mixed use, such as a shop with a flat above, may need both approaches. Again, specialist territory.

Land without planning permission

A field is worth agricultural value until somebody thinks it might get planning permission, at which point hope value enters the picture. HMRC expects valuers to consider whether there is development potential and to reflect it. A paddock behind a village that everyone locally assumes will be built on one day is not worth bare agricultural value, and reporting it as such invites a challenge.

Property abroad

Foreign property is still part of the estate for UK inheritance tax if the deceased was UK domiciled or a long-term UK resident. You will need a local valuation, and you should expect local succession rules and possibly local taxes to apply as well. Foreign assets over £100,000 also take the estate outside the excepted estate rules.

Jointly owned property

This is the single most commonly botched part of a house valuation for probate purposes, and it has two separate questions in it.

What passes, and what is valued

Where the property was held as beneficial joint tenants, the deceased’s interest passes automatically to the survivor. It is outside the probate estate and does not pass under the will. It is still valued and reported for inheritance tax.

Where it was held as tenants in common, the deceased’s share falls into the estate and passes under the will or intestacy.

A point worth knowing: the register at HM Land Registry does not tell you which applies, because the legal estate vests in the surviving proprietor either way. What you look for is a Form A restriction on the title, which indicates a tenancy in common, and any declaration of trust.

The discount, and when it does not apply

A share of a property is worth less than a proportionate slice of the whole, because a buyer of a half share gets a co-owner rather than a house. GOV.UK’s guidance for valuing a share where the co-owner is not a spouse or civil partner is to divide the value of the whole by the number of owners and then reduce the deceased’s share by 10%.

Where the co-owner was the deceased’s spouse or civil partner, the related property rules in section 161 of the Inheritance Tax Act 1984 apply instead. The two shares are valued together and the deceased’s share is taken as the appropriate proportion of the combined figure. In practice that means no discount.

Applying a 10% discount to a married couple’s jointly held home is one of the most common ways an estate gets understated, and it is exactly the sort of error that removes a reasonable care defence. If the co-owner was the spouse, do not discount.

What affects the valuation

• Location. Usually the largest single factor, and the reason two identical houses can differ substantially in value.
• Size and layout. Floor area, number of bedrooms and bathrooms, usable space.
• Condition. Genuine disrepair reduces value. So do structural problems, damp, subsidence history and an unsafe electrical installation.
• Tenure. Freehold, leasehold and the lease term, as above.
• Comparable sales. What genuinely similar properties nearby actually sold for around the date of death, which is what a valuer and the District Valuer both work from.
• Potential. Scope to extend or convert, and any development value.
• Occupation. Whether the property was empty, tenanted, or occupied by someone with a right to remain.

Two factors that are not relevant: what the property was insured for, and what the deceased paid for it.

What happens if HMRC questions the figure

Land and property valuations are referred by HMRC to the Valuation Office Agency, and the District Valuer looks at your figure against survey details, sale prices of the property itself or similar properties sold around the date of death, and the data the VOA holds for council tax purposes.

A referral is routine and does not mean anything is wrong. It means the VOA is checking whether the figure is fair and reasonable. Where you have a properly instructed valuation and a record of how you arrived at the number, this is a conversation. Where you have a guess, it is a problem.

Penalties turn on behaviour rather than on the existence of an error. Under Schedule 24 of the Finance Act 2007, an inaccuracy made despite taking reasonable care carries no penalty. Carelessness and deliberate understatement do. There is one trap in that: an innocent error that you later discover and fail to report is treated as careless, so if something comes to light, tell HMRC using form C4.

If the property sells for a different figure

Sold for more

A higher sale price does not automatically increase the inheritance tax. Inheritance tax is charged on the value at the date of death, and a rise between death and sale is ordinarily a capital gain.

Where the sale happens soon after death, though, HMRC may treat the price achieved as good evidence of what the property was worth at death and query the reported figure. That is an enquiry rather than an automatic adjustment, but a sale at well above your valuation three months after death is the most likely thing to prompt one.

Sold for less

There is a relief, and it is routinely missed. Under section 191 of the Inheritance Tax Act 1984, where land is sold at a loss within four years of death, the person liable for the inheritance tax on that land can claim to substitute the sale price for the date of death value. The loss must exceed the lower of £1,000 and 5% of the date of death value.

Two important limits. There is nothing to claim if no inheritance tax was actually payable on the property, which excludes most estates. And once you claim, the sale prices of all interests in land sold within the four year period are substituted, including any sold at a gain, which can leave a claimant worse off overall. Take advice before claiming.

Capital gains tax

There is no capital gains tax on inheriting. It arises only if the property sells for more than its date of death value.

Who sells changes the bill. Personal representatives selling during the administration have a single £3,000 annual exempt amount, available only for the tax year of death and the two that follow, and pay a flat 24%. Beneficiaries who have had the property transferred to them each have their own £3,000 exemption and pay 18% or 24% depending on their own income. With several beneficiaries, appropriating the property to them before the sale can save a meaningful sum, and it is a decision worth taking deliberately rather than by default.

Any tax due on a UK residential property must be reported and paid within 60 days of completion.

One further point that very few articles make. The date of death figure only binds HMRC as the base cost where it was ascertained for inheritance tax, meaning HMRC actually used it to arrive at a tax charge. In an estate where no inheritance tax was payable, nothing was ascertained, so HMRC is not bound by your figure and can look at it afresh on a sale. Our guide to capital gains tax on inherited property goes into this in more detail.

Getting help

Where the property is ordinary and the estate is comfortably below the nil rate band, a written estate agent valuation on the date of death basis is usually proportionate. Where it is a flat with a short lease, a farm, a tenanted property, a shared ownership share or anything near a tax threshold, get a professional valuation.

You can find a probate valuer through The Probate Network. For the wider exercise, see our guide to how to value an estate for probate, which covers the estate as a whole, and an executor’s responsibilities for probate property for the practical side of looking after it.

If the property will be standing empty, check the insurance position early. Most standard policies restrict or withdraw cover once a property has been unoccupied beyond a period set by the insurer, so the existing policy needs checking rather than assuming. Our guide to probate house insurance covers it.

When you are ready to sell, selling a house before probate explains what you can do before the grant arrives.

Frequently asked questions

What is a house valuation for probate purposes?

It is the open market value of the property at the date of death: the price it might reasonably have been expected to fetch if sold on the open market on that day, under section 160 of the Inheritance Tax Act 1984. It is used to work out whether inheritance tax is payable and to complete the probate application. It is not a marketing appraisal of what the property would achieve if listed today, and the costs of selling are not deducted from it.

Do I need a RICS valuation for probate?

Not as a legal requirement. There is no rule obliging you to instruct a chartered surveyor, and an estate agent’s written valuation given on the date of death basis is acceptable. That said, HMRC’s own Inheritance Tax Toolkit strongly advises a qualified independent valuer for assets of material value, and says that valuations of houses, land and buildings should meet RICS or equivalent standards. On a valuable or unusual property, a Red Book valuation is the most defensible evidence you can have.

Can I get a free house valuation for probate?

Yes. Most estate agents will provide one, and for a straightforward property in a well-supplied market that can be enough. Make sure you ask for the open market value at the date of death, in writing, and say it is for probate. Be aware that a free appraisal is given without liability and is usually disclaimed as not being a formal valuation, which is thin cover if HMRC queries a large figure.

Should I get three valuations and average them?

No. This is widely repeated and it is not how the rules work. Section 160 asks for a single open market value, and an average of three appraisals is a figure none of the three valuers actually gave. Getting more than one opinion is sensible, and HMRC’s toolkit supports it, but you should then form a reasoned view of the open market value and record why, rather than submitting the arithmetic mean.

How do I value a flat for probate?

The same open market value rule applies, but the lease is what drives the figure. Establish the unexpired term first: under current law a lease below around eighty years is materially harder to sell and more expensive to extend. Check the ground rent, any escalation clause, service charge arrears, outstanding major works and any cladding or fire safety issues. A flat is the property type where a free appraisal is most likely to be wrong, and where a surveyor usually earns their fee.

How is a jointly owned property valued for probate?

It depends who the co-owner was. Where the co-owner is not a spouse or civil partner, GOV.UK’s guidance is to divide the value of the whole by the number of owners and then reduce the deceased’s share by 10%. Where the co-owner was the deceased’s spouse or civil partner, the related property rules in section 161 apply, the shares are valued together and no discount is available. Note separately that a share held as beneficial joint tenants passes to the survivor and is outside the probate estate, though it is still valued for inheritance tax.

What happens if HMRC disagrees with my valuation?

HMRC refers land and property valuations to the Valuation Office Agency, and the District Valuer compares your figure against survey details, comparable sales around the date of death and council tax data. A referral is routine and does not imply you have done anything wrong. If the VOA cannot accept your figure it will open a discussion, and having a properly instructed valuation to point to is what makes that straightforward.

This article is for general guidance only and applies to England and Wales. It does not constitute legal, tax or financial advice. Rules and thresholds can change and every estate is different. For advice on your own circumstances, speak to a qualified professional. You can book a free legal consultation through The Probate Network.