Agricultural Probate Valuations

At Fallows, we provide specialist RICS Red Book agricultural probate valuations for farms, farmland, and rural estates across the South of England — from Kent in the east, Dorset in the west, and up to Oxfordshire in the north. 

Agricultural property brings with it complexities that are very different from standard residential valuations. Factors such as tenancy agreements, development potential (“hope value”), and eligibility for Agricultural Property Relief (APR) can significantly influence market value and Inheritance Tax (IHT) exposure.

The Impact of Agricultural Tenancies

The type of tenancy in place can drastically alter value:

  • AHA Tenancies (Agricultural Holdings Act 1986): Often provide lifelong security of tenure, sometimes passing to the next generation. This security reduces market value substantially compared with vacant possession land.
  • FBT Tenancies (Farm Business Tenancies, post-1995): Typically shorter, more flexible agreements. These tend to have less impact on value but may still impact values. 
  • Tenant Improvements: If your tenant has erected buildings, built yards, or improved farmland, then to some extent we may have to ignore these or factor in the cost of the landlord having to buy these assets. 
  • Secure Farm Workers’ Accommodation: Properties with tied or protected occupancy rights are difficult to sell freely and usually attract a discount compared with unrestricted cottages or houses.
  • Other Occupational Arrangements: Equine licences, grazing agreements, and seasonal lets all have different effects on open market value.

Our valuations carefully consider the tenancy framework, rent levels, and statutory rights so that executors receive a clear, defensible market value for probate purposes.

Hope Value and Development Potential

Some farmland and estates carry hope value for the possibility of future development, subject to planning. However, Hope Value is often not as much as people expect. At the end of the day, the value needs to reflect what somebody woudl pay for the farm at the date of death, and very few straetgic land buyers exist who will invest in remote opportunities. Such premiums must be assessed realistically and evidenced by planning policy context, local sales, and constraints (e.g. AONB, floodplain, or infrastructure).

We provide balanced, evidence-based reporting so that HMRC receives a figure that properly reflects both the agricultural and development potential.

Agricultural Property Relief (APR)

A major consideration for executors is the potential availability of Agricultural Property Relief (APR), which can reduce IHT by up to 100% on qualifying assets. APR may apply to:

  • Farmland in agricultural use
  • Farmhouses and cottages occupied for the purposes of agriculture
  • Modern & traditional farm buildings used for agricultural production

Our reports always include an assessment of APR eligibility and a clear explanation of how this interacts with tenancy status and land use. This ensures solicitors, executors, and beneficiaries understand the potential for relief and the areas where HMRC may raise queries.

Comprehensive Red Book Reports

Every agricultural probate valuation is prepared in line with the RICS Red Book, providing:

  • Full inspection and description of the land, buildings, and occupation arrangements
  • Clear analysis of tenancies and their statutory implications
  • Assessment of market value as at the date of death, with supporting comparable evidence
  • Consideration of APR and its effect on IHT exposure
  • Transparent explanation of methodology

This approach ensures our reports are robust, defensible, and accepted by HMRC.

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Frequently Asked Questions About Probate Valuations

Find answers to the most common questions executors, solicitors, and families ask about probate valuations and the inheritance tax process.

What is a probate valuation and why is it needed?

A probate valuation establishes the market value of property at the date of death (or gift within seven years) and is required by law to calculate any Inheritance Tax (IHT) liability. This valuation must usually be carried out by a RICS-certified surveyor

Who pays for the probate valuation and how long does it take?

Typically paid from estate funds, probate valuations vary by complexity. At Fallows, most residential probate reports are delivered within 5–7 days of inspection, ensuring swift progress in settling the estate.

Can I use an Estate Agent’s estimate instead?

Technically speaking, no, but we do acknowledge that some solicitors are happy with just an Estate Agent's letter provided that the value of the estate comfortably falls below the tax threshold, meaning that absolutely no inheritance tax is due or paid. If Inheritance Tax will need to paid, or if the estate is close to the threshold, then absolutely a formal valuation is required as probate demands an independent, Red Book-compliant valuation by a qualified valuation surveyor (eg RICS). Estate Agent estimates are generally informal, often optimistic, and not accepted by HMRC for probate requirements.

What influences property value in probate valuations?

Key factors affecting value include property type, location, market conditions, tax relief eligibility (e.g., APR/BPR), secure tenancies, hope value, use restrictions, and any planning or environmental constraints. Each valuation report documents these considerations transparently.