Menu
When children jointly inherit their parent’s property, their circumstances can often mean that one sibling buys out the other. When this happens, it’s important that the property is valued accurately and independently, so that the process is fair.
In this article, our expert team of financial advisers at PIL Southampton explains everything you need to know about how an inherited property is valued when you’re buying out a sibling.
A probate house valuation is an accurate estimation of the value of a property at the time of the homeowner’s death.
It differs from a standard property valuation in that it specifically needs to value the property at the time of death, not at its current market value. That’s why a key aspect of a probate house valuation is to find properties that are as similar as possible – including their condition, location and potential for development – to back up their judgment on the property’s value.
A probate house valuation will also include analysing market trends and conditions, and will consider any unique aspects of the property that could affect its value.
Although it’s advisable for an executor or administrator to instruct a surveyor to value the property for probate as soon as possible after the homeowner’s death, it can often not be instructed until three to six months later, due to all the other tasks and issues that need to be addressed when someone dies.
There are various circumstances in which you will need a probate valuation, including:
You will not need a probate valuation if the property is left to a surviving spouse or civil partner, or if the property is bequeathed to a charity or community amateur sports club.
You will also not need a probate valuation if the value of the estate is below the Inheritance Tax threshold – currently £325,000 at the time of writing.
An estate agent’s valuation is usually provided for free, and will give you a rough idea of the property’s value from a marketing perspective, but it isn’t considered an official valuation.
A RICS valuation, on the other hand, does cost money, but it’s much more thorough – it therefore holds more weight and is favoured by HMRC, especially if the property is complex or higher worth. It includes a full inspection of the property with a clear, evidence-based market value that considers similar property sales in its local area. Compliant with all the relevant industry guidelines, a RICS valuation provides supporting photos and notes, and will be accompanied by a signed valuation letter.
When it comes to a property valuation for probate, you will only need one valuation if you are paying for a RICS qualified survey. This is because it’s a formal, detailed assessment and provides robust evidence if HMRC query the value.
If you are using estate agent appraisals, then it’s advisable to take an average from two or three valuations. As a valuation from an estate agent is less formal and less comprehensive than a RICS valuation, this type of valuation is only advised for a standard residential property within an estate below the IHT (Inheritance Tax) threshold.
Market value is the amount you would expect the property to be worth if you were selling it today. This amount can fluctuate based on changing market conditions.
Probate value is the estimated value of the property at the time of the deceased’s death and it’s fixed once it’s been agreed with HMRC.
A mortgage lender will take the probate valuation into account, but they will also need a market valuation at the time you apply for the mortgage.
The amount they are prepared to lend to you is likely to be based on the current market value, not the probate value, if the two amounts differ.
If you jointly inherited the property and you want to buy out your sibling, the lender will value the property as normal and you will effectively buy their share using your mortgage funds.
Sometimes, beneficiaries have different opinions – they can disagree on the value of the property which can lead to conflict. Another cause of dispute could be if a beneficiary feels they have been unfairly treated regarding the deceased’s wishes in their will and, if they choose to contest the will, it could lead to valuation disputes.
If the deceased dies intestate (without a will), then not having clarity can cause dispute over the distribution of the estate.
It can also be the case that the executors or administrators disagree on what funds they should use to pay for the RICS valuation.
Ideally, any dispute will be resolved through negotiation. This could be through open dialogue, by engaging a mediator, and/or seeking legal advice if necessary. Pursuing court proceedings should be a last resort.
It’s usually not necessary to deduct repair costs before you have bought out your sibling’s share of the property you have inherited. This is because the property has been valued in its current condition, and any repairs or improvements made after that time will only benefit you as the buyer.
Taking this approach avoids any potential disputes over the cost or quality of any repairs.
Administering a deceased person’s estate in the UK must adhere to a legal framework that includes various key pieces of legislation and regulatory bodies that govern probate.
The Inheritance (Provision for Family and Dependants) Act 1975 allows certain individuals to apply to the court to be included in a will, and to contest the will if they feel they haven’t been adequately provided for. In this case, the court will be asked to consider factors such as the financial needs of the claimant and any obligations the deceased is deemed to have had towards them.
The Administration of Estates Act 1925 and the Trustee Act 2000 are also significant pieces of legislation. Together, these three laws provide the legal basis for the administration of an estate, including:
The Probate Registry also plays a vital role when estates are administered. It is responsible for issuing grants of probate (confirming the validity of a will and authorising executors to administer the estate) and it also oversees the process of obtaining probate according to the law.
Executors, tasked with the administration of the deceased’s estate, must also adhere to the law. They are responsible for getting the estate’s assets valued for probate, and must make sure the assets are distributed according to the will, or to the rules of intestacy if there is no will. They must also act impartially, ensuring that the estate is managed fairly and in line with all legal requirements.
It is also the executor’s role to navigate any disputes, including disagreements over probate property valuations.
The District Valuer Services (DVS) of HMRC are responsible for examining property valuations to make sure that they are accurate. If they believe a valuation to be incorrect, a challenge could lead to financial penalties being imposed on the executors of the estate.
A surveyor valuing a house for probate needs to be a RICS qualified valuer, not just a RICS qualified surveyor. They need to be indemnified to provide probate valuations on property and to have enough experience in the local area to be competent in providing an accurate property valuation.
They also need to work within the Red Book RICS Valuation Professional Standards, have no financial interest in the property, and be unrelated to and independent of the property.
Our expert team of financial advisers has guided many clients through this process and will be happy to support you with the right resources to suit your circumstances.
You can email us, fill out the contact form on our website or call us on 02380 668407. We look forward to hearing from you.
Protection & Investment Ltd © 2025
Registered in England No 3757929
Protection & Investment Ltd is an Independent Financial Adviser which is authorised and regulated by the Financial Conduct Authority [Reg No 222993]
Details can be found on the FCA website www.fca.org.uk
Business Address: 49 Hawkers Cl, Totton, Southampton SO40 3GG
Registered Office: Chandlers House, Ganders Business Park, Kingsley, Hampshire, GU35 9LU
Head Office – Tel: 01420 470 241 – Fax: 01420 478759