In most cases a house is the most valuable asset of an estate. Not only monetary value but the property will also have sentimental value depending on the circumstances. One of the first steps when dealing with an estate with a house is to obtain a probate valuation.
A probate valuation will give you an accurate value of the property at the time of death. HMRC will need to accept the valuiation report as this will determine the amount of Inheritance Tax due. If any at all. It is recommended to instruct a RICS Surveyor to carry out this valuation for you, it is important you get the value correct from the outset in case HMRC query any figures you have submitted.
The Market value of the property will be a more varied price and will give you an idea of what price you will achieve if the property is being sold. If you choose to auction the property, they will give you a guide price and set a reserve for you. This will give you a good understanding of what the house will achieve in the auction.
Why we recommend obtaining a probate valuation?
It would be quite easy for you to input the market value when submitting your Inheritance Tax forms to HMRC. However, as mentioned above the market value is a broader price. If HMRC do question the figures you may have a hard time proving the value. A probate valuation takes into consideration the condition of the property, type and style of construction, location, terms of leases and age of the property giving you the most accurate value. Not only do you want to be sure that you don’t under pay Inheritance Tax you also want to make sure you don’t overpay.
Can Probate Property Services help?
Yes. We can complete a probate valuation for you, one of our surveyors will also liaise with HMRC on your behalf if they have any questions about the valuation.
We also offer many other services such as contents valuation which should also be considered when submitting forms to HMRC. Please contact us today on 01843 808384 or at jade@probate-ps.co.uk for any further information.
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