When dealing with the administration of an estate, obtaining an accurate and compliant property valuation is a crucial step. For probate purposes, HM Revenue & Customs (HMRC) requires that property assets are valued at their open market value as at the date of death. A RICS Red Book valuation report provides the recognised professional standard for meeting this requirement.
How does a Red Book valuation for probate work?
A RICS Red Book valuation is prepared in accordance with the RICS Valuation – Global Standards, commonly referred to as the “Red Book”. These standards ensure that valuations are undertaken independently, objectively, and transparently, providing confidence to executors, beneficiaries, solicitors, and HMRC alike. For probate, the valuation must reflect the price the property might reasonably have achieved if sold on the open market at the relevant valuation date, assuming a willing buyer and seller.
Using a Chartered Surveyor to prepare a Red Book valuation can help minimise the risk of disputes with HMRC, particularly where estates are subject to Inheritance Tax. HMRC has the right to challenge property values, and professionally prepared reports are far more robust than informal estimates or online valuation tools. A Red Book report clearly sets out the valuation methodology, assumptions, comparable evidence, and any relevant market conditions, making it easier to justify the figure if queried.
At Vickery Holman, we regularly act for executors, solicitors, and private individuals requiring probate valuations. We have provided valuation advice for various property types for probate purposes including a mixed residential and commercial property portfolio, a convenience store, industrial properties, and retail properties. This breadth of experience allows us to understand the nuances of different property sectors and ensure each asset is valued appropriately.
What are Red Book valuations used for?
In addition to supporting probate applications, Red Book valuations can also assist with estate planning, negotiations between beneficiaries, and future capital gains tax calculations. Engaging a RICS-regulated firm ensures that valuations are not only accurate but also compliant with professional and regulatory standards, providing reassurance at what can often be a difficult and sensitive time.
