Probate property is generally considered to be a complicated topic, with many drawn-out legal processes and jargon to decipher. If you have recently inherited a probate property in the Newcastle area and are unsure of the next steps, there’s no need to worry – you’ve come to the right place.
Typically, the best place to start when it comes to probate property is seeking a valuation. This will help you to understand how much the probate property is worth, and ultimately whether you should decide to sell the property, rent it out, or live in it yourself.
In this article, we’ll guide you through all the facts when it comes to probate valuation, including the definition of a probate valuation, why you may want to have a probate property valued, and how you go about getting a valuation for a probate property.
What is a Probate Valuation?
First things first – what is a probate valuation?
A probate valuation is a way of determining the value of the assets of a deceased person. This could include money they held, property owned, personal possessions, as well as any money they have tied up in stocks and shares.
When it comes to property, probate valuation is slightly different from a market valuation. A probate valuation will be used by HMRC to determine how much inheritance tax you’ll need to pay on a deceased person’s estate/property, while a market valuation is an estimation of the value of a property based on sales nearby and other local factors.
Ultimately, a probate valuation is what legally confirms the value of the assets of a deceased person’s estate, and will often include the property that they themselves were living in or other properties that they may have owned such as rental properties for example.
Why Do I Need a Probate Valuation?
A probate valuation is necessary for several different reasons.
From a legal standpoint, a probate valuation will need to be carried out to determine how much inheritance tax is due on the deceased’s estate. This is calculated by totalling up all the assets of the deceased and charging a 40% tax over the necessary thresholds. The threshold is generally £325,000, rising to £500,000 if the deceased is leaving property to children/grandchildren.
Another reason why you need a probate valuation is to establish the fair distribution of a deceased person’s assets among beneficiaries of their Will. A probate valuation will tell you how much money the deceased’s estate is worth, which can be correlated with any valid Will(s) to distribute assets out to potential beneficiaries.
How Do I Get a Property Valuation for Probate?
To get a property valuation for probate you’ll need to carry out a valuation on the deceased person’s property.
You could do this yourself if you’re keen to avoid bringing third parties into the valuation process. If this is the route you’d like to take, you can follow the below steps to establish a rough estimation:
- Search the property on housing websites such as Zoopla, Rightmove, or The Move Market to establish an estimate as well as historical data held on the property
- Analyse sold prices for similar properties in the area that your probate property is based to determine the average price that it may sell for on the open market
While it’s very much possible to determine a valuation on a probate property yourself, it’s generally considered to be more accurate to seek a valuation from two or three different estate agents to establish a more realistic valuation.
It’s worth bearing in mind that if the estimated value of an estate (including property) is close to or over the inheritance tax threshold, you may need to instruct an RICS property surveyor to carry out a valuation. This will help to confirm the valuation of a property, and provide HMRC with a contact should they wish to dispute the valuation of a probate property.
How We Buy Any Home Can Help
If you’ve recently inherited a Newcastle property and are looking at selling, reach out to We Buy Any Home. We’re the biggest online cash property buyer in the UK and have many years of experience helping our customers sell probate properties in Newcastle.
We’re well-versed in the details of probate property selling and can assist you in achieving a great valuation on your home, without you having a drawn-out selling process.
You can request a free cash offer for your probate property via our website, and property funds could be released in as little as 7 days. We’ll even appoint you with a solicitor at our expense to guide you through the property sale, as well as two surveyors to carry out a thorough survey of your property.
Get a free cash offer for your probate property today and get things moving with your Newcastle property sale!