How to value a house for probate in the UK

Written and reviewed by the South Yorkshire Property Buyers team. Last reviewed: 2 July 2026.

What "value for probate" actually means

When someone dies, the whole estate has to be valued so the executor can work out whether Inheritance Tax is due and apply for the Grant of Probate. The property is usually the largest single asset in that estate, so getting its figure right matters more than any other line on the form.

The standard HMRC uses is open market value at the date of death. That is the price the property would reasonably be expected to fetch if it were sold on the open market on the day the person died, between a willing buyer and a willing seller, with neither under pressure. It is not what you hope to get, not what the neighbours sold for two years ago, and not a quick-sale figure. It is a snapshot of a fair market price on one specific date.

Two things flow from that single number. First, it feeds the Inheritance Tax calculation for the estate. Second, and this is the part many families miss, it becomes the estate's base cost for Capital Gains Tax. If the property is later sold for more than the probate value, the difference can be taxed. So the valuation is not just paperwork to get the Grant, it sets the tax baseline for the whole sale.

RICS Red Book valuation vs an estate agent's estimate

There are two common ways to put a value on a probate property, and they are not equal in HMRC's eyes.

An estate agent's market appraisal is free and quick. An agent visits, looks at recent local sales, and gives you a figure, often a range and often on the optimistic side, because agents want the instruction to sell. For a modest, straightforward property well under the Inheritance Tax threshold, HMRC will often accept a written estate agent valuation, ideally two or three of them averaged, kept on file as evidence.

A RICS Red Book valuation is a formal report from a chartered surveyor, prepared to the standards in the RICS Valuation Global Standards (the "Red Book"). It is a paid service, usually a few hundred pounds, and it carries far more weight with HMRC. Where the estate is near or over the Inheritance Tax threshold, where tax is actually payable, or where the property is unusual or hard to value, a Red Book valuation is the safer route. It gives you a defensible figure if HMRC or the District Valuer questions the estate later.

A simple rule of thumb: the more Inheritance Tax rides on the number, the more you want a chartered surveyor rather than a free agent estimate behind it. HMRC can and does refer property values to the Valuation Office Agency, and an informal guess is much easier to challenge than a Red Book report.

How to get the probate valuation done

You do not have to sell through the person who values the property, and you should not feel pushed into it. The valuation is a fixed point in time, the date of death, and getting it done early does not commit you to any sale price or any buyer.

A sensible order of steps:

Start early. The valuation captures the date-of-death value, so there is no benefit in waiting. Getting it in place lets you complete the Inheritance Tax return and apply for the Grant without delay.

Gather evidence. Whether you use a surveyor or agents, keep everything in writing. Note the date of the valuation, the basis (open market value at the date of death), and any comparable sales relied on. If you use estate agents, get more than one so you can show HMRC a considered figure rather than a single opinion.

Declare it accurately. The figure goes on the Inheritance Tax return that accompanies the probate application. Even where no tax is due, the estate still has to be valued and the property figure declared.

Do not lowball it. It can be tempting to declare a low value to reduce Inheritance Tax. That is a false economy in most cases, and where tax is due it risks penalties if HMRC decides the figure was understated. It also lowers your CGT base cost, which we come to next.

The Capital Gains Tax trap: selling above or below the probate figure

This is where families get caught out, and it is the single most important reason to get the probate valuation right.

The probate value, the open market value at the date of death, becomes the estate's base cost for Capital Gains Tax. When the property is later sold during the administration of the estate, the gain is measured from that base cost, not from what the deceased originally paid decades ago.

If the property sells for more than the probate value, the difference is a gain. After deducting selling costs and the estate's annual exempt amount, the remaining gain is taxable. For 2026 to 2027, residential property gains are charged at 18% for gains within the basic rate band and 24% above it, and an estate in administration has a £3,000 annual exempt amount for the tax year of death and the following two tax years. Any CGT on a UK residential property sale has to be reported and paid within 60 days of completion.

Here is the trap. If a low value was declared for probate to save Inheritance Tax, the base cost is low, so a later sale at the true market price produces a larger taxable gain. You can end up paying CGT you could have avoided, sometimes wiping out the Inheritance Tax you thought you had saved. Getting the probate value close to the real market value from the start is what keeps both taxes sensible.

Selling below the probate value has its own consequences. If the sale genuinely reflects a fall in the market or a realistic price, there may be relief available on the Inheritance Tax already paid, but the rules are specific and time-limited, so take advice from the estate's solicitor or accountant before assuming it applies.

How a fast cash sale keeps the estate simple

There is a neat reason a sale at or near the probate value often makes an estate far easier to administer: if the sale price matches the base cost, there is little or no gain, and usually no Capital Gains Tax to report or pay.

Probate properties are often empty, dated, and quietly costing the estate money every month in insurance, council tax, standing charges and upkeep. Chasing the last few percent on the open market can take months, during which the property can deteriorate and beneficiaries wait. Where the estate needs to fund an Inheritance Tax bill, which is normally due within six months of the date of death, a slow sale can even trigger interest on the unpaid tax.

A cash sale close to the probate valuation cuts through most of that. There are no estate agent fees, no chain, and no mortgage-dependent buyer to fall through. We buy at 80 to 85% of market value, which is the cost of that speed and certainty, and we work directly with the estate's solicitors so completion can follow quickly once the Grant is issued. Because the sale price sits near the probate figure, the CGT position usually stays clean and the estate stays simple to close.

Executors do have a duty to obtain the best price reasonably obtainable, a principle set out in Buttle v Saunders [1950]. That duty does not stop an executor accepting a fair cash offer where speed, certainty, holding costs or beneficiary preferences make it the sensible choice, as long as the reasons are documented. A cash sale near probate value can meet that duty and keep the tax straightforward at the same time.

Frequently asked questions

How do I value a house for probate?

You establish its open market value on the date of death, the price it would fetch in a normal sale between a willing buyer and seller. For a modest estate, two or three written estate agent valuations kept on file may be enough. Where Inheritance Tax is due or the property is hard to value, HMRC expects a RICS Red Book valuation from a chartered surveyor.

Do I need a RICS valuation or is an estate agent's estimate enough?

It depends on the estate. HMRC will often accept written estate agent valuations for a straightforward property well below the Inheritance Tax threshold. Where the estate is near or over the threshold, where tax is payable, or where the property is unusual, a RICS Red Book valuation from a chartered surveyor is far more defensible if HMRC or the Valuation Office questions the figure.

What date do I value the property at?

The date of death. Probate value is the open market value of the property on the day the person died, not the day you get around to valuing it and not the day it eventually sells. Getting the valuation done early captures that date-of-death figure accurately.

What happens if I undervalue a house for probate?

Undervaluing to reduce Inheritance Tax is usually a false economy. Where tax is due, HMRC can challenge an understated figure and apply penalties. A low probate value also lowers the estate's Capital Gains Tax base cost, so a later sale at the real market price produces a bigger taxable gain, often costing more in CGT than was saved in IHT.

Do I pay Capital Gains Tax if I sell above the probate value?

Possibly. The probate value is the estate's base cost for CGT. If the property sells during administration for more than that, the gain above the estate's annual exempt amount is taxable, at 18% or 24% for residential property in 2026 to 2027. Selling at or close to the probate value usually means little or no CGT is due.

What is the CGT allowance for an estate in 2026?

An estate in administration has a £3,000 annual exempt amount for the tax year in which the death occurred and the following two tax years. Residential property gains above the allowance are taxed at 18% within the basic rate band and 24% above it, and any CGT must be reported and paid within 60 days of completion.

Can a low sale price reduce the Inheritance Tax already paid?

Sometimes. If a property is sold during the administration period for less than the probate value, relief may be available to reduce the Inheritance Tax based on the actual sale price, but the rules are specific and time-limited. Ask the estate's solicitor or accountant before relying on it.

How does selling to a cash buyer affect the probate valuation?

A cash sale at or near the probate value keeps the estate simple, because a sale price close to the base cost usually means little or no Capital Gains Tax to report. We buy at 80 to 85% of market value and work directly with the estate's solicitors, so completion can follow quickly once the Grant is issued.

Do executors have to get the highest possible price?

Executors have a duty to obtain the best price reasonably obtainable, a principle set out in Buttle v Saunders [1950]. That does not prevent accepting a fair cash offer where speed, certainty, holding costs or beneficiary wishes make it the sensible outcome, provided the reasons are documented.