When someone dies, the personal representatives need to identify the estate’s assets and debts and establish appropriate values before completing the relevant probate and Inheritance Tax reporting. For land and buildings, the relevant question is normally the market value of the deceased’s interest at the date of death.
A professionally prepared valuation can provide a reasoned record of the property, interest, evidence and assumptions used. It does not replace the executor’s legal or tax advice, and it cannot guarantee that HMRC will accept the reported figure without enquiry.
Define the property interest
The valuer needs to know what the deceased owned. That may be a freehold house, a leasehold flat, a fractional beneficial interest, a tenanted property or an interest connected with other land. Legal ownership and beneficial entitlement should be confirmed with the estate’s solicitor where they are not straightforward.
The valuation report should identify the interest and any assumptions. Valuing the whole property and then applying a percentage is not necessarily the correct approach to every jointly owned interest.
The date of death controls the market context
The inspection may take place later, but the valuation date remains the date of death. The valuer researches transactions and market conditions relevant to that historic date and considers the property’s state and occupation then. Later repairs, deterioration or alterations must be separated from the assumed historic condition.
An eventual sale can provide information, but it does not automatically replace the earlier market valuation. The timing and circumstances of the transaction need analysis.
Information to assemble
Good records make the instruction more efficient and reduce avoidable assumptions. Executors should tell the valuer about anything that may affect the interest or the condition as at the date of death.
- Full address, title or lease information and ownership shares
- Date of death and required report recipient
- Tenancy or occupation details
- Plans, extensions, consents and known defects
- Photographs or sales particulars showing historic condition
- Any related property or unusual sale arrangements
Using the report
The executor or tax adviser uses the valuation within the wider estate return. The report should be retained with its evidence and correspondence in case questions arise. If a later disposal creates a Capital Gains Tax issue or a possible loss-on-sale claim, separate tax advice is essential.
The valuation is prepared for its named client and probate or tax purpose. Beneficiaries, purchasers and lenders should not assume that the same report serves their different decisions. An update should be agreed if the intended use changes.
Advice for your property
Get the right professional inspection
Online guidance is useful, but it cannot account for the construction, condition and history of an individual property. Tell us what you are buying or need valued and we will explain the appropriate service.
Authoritative sources and further reading
The guide is general information, not property-specific, structural, legal, tax or financial advice. Source pages can change; consult the relevant professional for your circumstances.