Probate value versus market value

Probate value is the figure used for inheritance tax reporting.

It should reflect the property’s open market value at the date of death, on a willing buyer and willing seller basis, without any special assumptions.

Market value is the price you achieve when you sell. It is influenced by timing, presentation, buyer demand, and negotiation.

It can be higher or lower than the probate value due to market movement or the condition of the property at sale.

Think of probate value as a snapshot for tax and compliance on the date of death. Think of market value as the real world outcome when you go to market. HMRC expects a fair, evidence based probate valuation, not an optimistic asking price, and not a distressed sale figure.

How to value your property for probate

You have two broad routes, and you should choose the option that matches the complexity of the estate and the likely tax position.

Obtain Professional Written Valuations.

For many estates, two or more written valuations from local agents with probate experience will be appropriate.

Each valuation should reference comparable sales, location, property condition, and any development potential that a typical buyer would consider.

Commission A RICS Red Book Valuation.

Where the estate is large, inheritance tax is likely, or the property is unusual, a formal RICS valuation is advisable.

It provides a robust methodology that can help preventHMRC queries.

Whichever route you choose, keep detailed evidence. Retain the valuation letters, the comparable sales, any notes on condition, and dated photographs.

If works were needed at the date of death, document them. If material changes occur before sale, keep a paper trail. If HMRC challenges the figure, clear evidence reduces risk and stress.

Always value the contents separately where appropriate, and note fixtures and fittings clearly.

If you need a starting point before arranging inspections, you can use an indicative tool for an initial sense check, then follow with a compliant in person assessment.

For a conversation with local specialists, our team provides property valuation for probate across North and East London with clear, written evidence and sensitivity to your circumstances.

Probate value versus market value

Probate value is the figure used for inheritance tax reporting.

It should reflect the property’s open market value at the date of death, on a willing buyer and willing seller basis, without any special assumptions.

Market value is the price you achieve when you sell. It is influenced by timing, presentation, buyer demand, and negotiation.

It can be higher or lower than the probate value due to market movement or the condition of the property at sale.

Think of probate value as a snapshot for tax and compliance on the date of death. Think of market value as the real world outcome when you go to market. HMRC expects a fair, evidence based probate valuation, not an optimistic asking price, and not a distressed sale figure.

How to value your property for probate

You have two broad routes, and you should choose the option that matches the complexity of the estate and the likely tax position.

Obtain Professional Written Valuations.

For many estates, two or more written valuations from local agents with probate experience will be appropriate.

Each valuation should reference comparable sales, location, property condition, and any development potential that a typical buyer would consider.

Commission A RICS Red Book Valuation.

Where the estate is large, inheritance tax is likely, or the property is unusual, a formal RICS valuation is advisable.

It provides a robust methodology that can help preventHMRC queries.

Whichever route you choose, keep detailed evidence. Retain the valuation letters, the comparable sales, any notes on condition, and dated photographs.

If works were needed at the date of death, document them. If material changes occur before sale, keep a paper trail. If HMRC challenges the figure, clear evidence reduces risk and stress.

Always value the contents separately where appropriate, and note fixtures and fittings clearly.

If you need a starting point before arranging inspections, you can use an indicative tool for an initial sense check, then follow with a compliant in person assessment.

For a conversation with local specialists, our team provides property valuation for probate across North and East London with clear, written evidence and sensitivity to your circumstances.

The valuation steps during probate

Gather Information

Title, leases, ground rent or service charge details, planning history, and any guarantees.

Arrange Access

Ensure valuers and surveyors can inspect thoroughly, including lofts, basements, and gardens.

Request Evidence Based Reports

Ask for comparable sales, commentary on condition, and adjustments where needed.

Review and Reconcile

If you have multiple valuations, reconcile differences using comparable data. Where figures diverge, request clarification, not a rewrite to fit a desired tax outcome.
File the value within the probate and inheritance tax paperwork. Executors remain responsible for the accuracy of declarations, so cross check figures with your solicitor or tax adviser.
Keep records. Store all reports, emails, photographs, and notes. If the property sells later at a different price, your records will support your position.

What happens if the house sells for less than the probate value

This is common and not automatically a problem.

Markets move, properties are often sold as seen, and buyers may uncover issues that affect price.

If the final sale price is lower, you can usually apply for an inheritance tax refund on the difference for the property, provided you sell within four years of the date of death.

This is known as the sale relief mechanism for land, and it involves submitting the correct HMRC forms and evidence of the sale.

If the final sale price is higher, additional inheritance tax may be due, subject to allowances and reliefs.

Keep your records and speak to your adviser early.

If the price change reflects improvements carried out after the date of death, HMRC will consider that uplift separately.

Keep invoices and dates for any works.

The key is transparency.

Record the marketing history, offers, surveys, and reasoned negotiations.

A clean audit trail supports any post sale adjustment.

What is the minimum estate value for probate in the UK

There is no single nationwide threshold that removes the need for probate in every circumstance.

Whether probate is required depends on how assets are held and the policies of the institutions involved.

Some banks will release funds without probate if balances are below their internal limits.

These limits vary by institution.

Where property is held solely in the deceased’s name, probate is usually required to transfer or sell it.

Jointly owned property may pass to the surviving owner by survivorship, which can avoid probate for that asset, but not always for the rest of the estate.

Always check title status and speak to each institution early.

If there is real property in a sole name, expect to need a Grant, and plan your timeline accordingly.

Practical tips to keep the sale on track

Present honestly.

Clean and declutter, but avoid works that could confuse the probate valuation record.

If you choose to improve, document what was done and when.

Price with evidence. Use your probate valuation as a guide, then test current demand with recent comparable sales, not last year’s headlines.

Prepare documents early. Title packs, lease information, certificates, and replies to standard enquiries save weeks once a buyer is found.

Set expectations with beneficiaries. Agree what success looks like, speed, certainty, or price.

Alignment reduces disputes later.

If you would like a grounded view of value and a compliant route to market, our local specialists offer probate property valuations  that are transparent, evidence based, and tailored to probate circumstances.

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