You could get an estimated value of a UK home quite easily, by tapping into readily available information. However, this will not stand up to the test for inheritance tax, or probate if you are an executor. Here’s how to value fixed property in England yourself, if you just need a rough estimate:
- Contact the HM Land Registry website, and check out recent nearby property selling prices. You may need to adjust these, for example if your home has more bedrooms.
- See what you can learn from artificial intelligence, by studying market trends and sales in your area. Zoopla, Rightmove, and OnTheMarket could be great places to start, although there is no guarantee their information is entirely accurate.
- Estate agents are always keen to chat. Some may overstate value, in the hope of picking up business. Your local agent will usually be happy to provide a free, informal estimate.
Two Very Important Things to Remember
There are two things to remember here. First, property values are sensitive to interest rates. Although the impact of this depends on how high demand is in the area.
And secondly, few properties are identical in the UK. Remember to adjust for factors such as size, condition, garden, parking, renovations, privacy, the view through the windows, or from the patio etc.
You will only obtain a ballpark figure using these methods. The result of your research can never be legally binding, or acceptable to the authorities. If you need an official value, then you need to move on. You need to know how to value fixed property in England, in a way that an informed third party will accept.
Valuing Property for Legal, Tax or Borrowing
There are a number of reasons why you may need to obtain an accurate property valuation in England. Here are the six main drivers, depending on your particular situation:
- A mortgage valuation to finance a property purchase, or refinance a loan. The lender appoints a valuer in good standing with the Royal Institution of Chartered Surveyors (RICS). This is a basic check to ensure adequate loan security, not a full survey.
- A full-blown Red Book valuation by a valuer who is in good standing with RICS. This is a thorough review for probate,legal, tax, divorce, and dispute purposes, done in terms of RICS Global Standards
- A probate property valuation as required for inheritance tax, or estate settlement / distribution to heirs. The valuer may be a RICS surveyor, or another approved by His Majesty’s Revenue and Customs (HMRC).
- A capital gains tax valuation by a RICS surveyor for HMRC, when selling a property that is subject to capital gains tax. HMRC has a right to challenge this.
- A matrimonial valuation for a divorce settlement or ante-nuptial contract. The parties agree to the valuer. The goal is a fair market value agreeable to them both.
- A council tax valuation by the Valuation Office Agency, to set a council tax band / business rate. This government assessment is usually free of charge.
You now have a good understanding of how to value fixed property in England, in a way that a third party will accept. Here’s a handy summary to help you understand how to arrange an official RICS valuation:
Arranging a RICS Fixed Property Valuation
You may need a appoint a qualified RICS valuer if you want a decent job done, and one that an informed person will accept as credible. This is especially the case if you need it for probate, capital gains tax, inheritance tax, mortgage application, divorce settlement, and other dispute purposes. Here’s how you go about it:
- Choose several RICS Surveyors by researching the Royal Institution of Chartered Surveyors website. Provide the property address / reason for valuation, and request quotes.
- Choose your preferred supplier. Arrange for them to visit your property, so they can measure up, take photos, and assess the location and condition.
- Receive a written, signed valuation that meets international RICS standards. Submit this to the third party requiring it, making sure you provide the necessary background information.
Let Avery Associates Do This For You
Avery Associates regularly appoints RICS valuers to assess clients’ fixed properties for probate and inheritance tax purposes. Our fees are reasonable, and we can assist with capital gains tax and inheritance tax submissions.
Getting the ball rolling is as simple as contacting us after following this link, or dialing 0800 567 7769. Then sit back and relax while we handle the paperwork, and ensure that everything goes according to plan.
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