How do I sell a house I’ve inherited? Losing a loved one can be a difficult and emotional experience, and dealing with the practicalities of their estate can be overwhelming.
One of the most significant assets they may leave behind is property, which can be a valuable inheritance and a significant responsibility. In this guide, we will walk you through the process of selling an inherited property, including the legal processes, taxes, and market conditions.
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How do I sell a house I’ve inherited?
Before selling an inherited property, it is essential to understand the legal process involved. Probate is the legal process of administering the estate of a deceased person, which includes distributing their assets according to their will.
If the deceased person did not leave a will, the estate will be distributed according to the rules of intestacy. The executor of the will, or the person responsible for administering the estate, must apply for a Grant of Probate, which gives them the legal authority to manage the estate.
Once you have probate, you can begin preparing the property for sale. This might involve clearing out personal belongings, making repairs, or even renovating to increase the property’s value.
Valuation & Pricing
Getting an accurate valuation is key to selling an inherited house. Estate agents can provide free valuations, but it’s worth getting several opinions to ensure you’re pricing the property correctly. Remember, the market value may be different from the probate value, which is used for inheritance tax purposes.
Choosing a Selling Method
You have several options when it comes to selling an inherited house:
- Estate agents: Traditional high street agents or online agents can market your property and handle viewings.
- Property auctions: This can be a quick way to sell, especially if the property needs work.
- Cash buying companies: At Property Saviour, we offer a fast sale, though typically at a lower price.
Each method has its pros and cons, so consider your priorities – speed, price, or convenience?
Dealing with Joint Inheritance
If you’ve inherited the house with siblings or other beneficiaries, you’ll need to agree on how to proceed. This can be tricky if there are differing opinions. Open communication and possibly mediation can help resolve conflicts.
Insider’s Tips for a Smooth Sale
- Keep the property insured and maintained while it’s empty
- Consider professional cleaning or staging to make the property more appealing
- Be prepared for emotional challenges – selling a loved one’s home can be tough
Transferring Ownership of an Inherited Property
During probate, the executors of the will need to transfer ownership of the property into the beneficiary’s name. This involves filling out forms with the Land Registry.
Once probate is complete and the will has been administered, ownership of the property will officially transfer to you, and you can register your ownership at the Land Registry
Taxes & Inheritance
Inheritance tax is payable on the estate of the deceased person if its value exceeds £325,000. The tax rate is 40% of the value above this threshold.
However, there are some exemptions and reliefs available, such as the spouse exemption, which allows a spouse to inherit the estate without paying inheritance tax. Capital gains tax is also payable on the profit made from selling an inherited property. The tax rate depends on the individual’s income tax band and the profit made from the sale.
Can I sell a house before probate is granted?
No. You need probate to have the legal authority to sell the property. However, you can start preparing for the sale before probate is granted.
Can I sell an inherited property without probate?
No, you cannot sell an inherited property until probate is granted (if probate is required). Probate is the legal process of administering the estate of a deceased person, and it is necessary to obtain a Grant of Probate before selling the property.
How long does it take to sell an inherited property?
The time it takes to sell an inherited property depends on the selling option chosen. Selling with an estate agent can take several months while selling at auction typically takes 8-12 weeks. Selling to Property Saviour can take as little as 10 days.
Do I need to pay capital gains tax on an inherited property?
Yes, you may need to pay capital gains tax on an inherited property if you sell it for a profit. The tax rate depends on your income tax band and the profit made from the sale.
How long does it take to sell an inherited house?
The timeline can vary widely. Obtaining probate usually takes 3-6 months. After that, selling can take anywhere from a few weeks to several months, depending on the property and the market.
Bypass Estate Agents: Sell Directly to Property Saviour
These are some selling options available for you to consider:
Selling with an Estate Agent
Selling with an estate agent is a traditional method of selling a property. The agent will market the property, handle viewings, and negotiate offers on behalf of the seller. The pros of selling with an estate agent include wide market exposure, professional negotiation skills, and handling of paperwork and legal processes. However, the cons include commission fees, no guarantee of a sale, and the potential for a long sales process.
Selling at Auction
Selling at auction is a faster method of selling a property, typically taking 8-12 weeks. The pros of selling at auction include a quick sale, guaranteed sale on the fall of the hammer, and no estate agent fees. However, the cons include the risk of selling below market value, no control over the sale price, and the potential for a low sale price. Watch out for being tied into a long-term contract!
Selling to Property Saviour
Property Saviour is a cash house-buying company that offers a quick and hassle-free sale. The pros of selling to Property Saviour include a quick sale, guaranteed sale, no estate agent fees, and no need for refurbishment or repairs. However, the cons include a lower sale price compared to market value. But if you value speed and certainty, this could be the right option for you.
Property Saviour Price Promise
- The price we’ll offer is the price that you will receive with no hidden deductions.
- Be careful with ‘cash buyers’ who require a valuation needed for a mortgage or bridging loan.
- These valuations or surveys result in delays and price reductions later on.
- We are cash buyers. There are no surveys.
- We always provide proof of funds with every formal offer issued.
We'll Pay £1,500 Towards Your Legal Fees
- No long exclusivity agreement to sign because we are the buyers.
- You are welcome to use your own solicitor.
- If you don’t have one, we can ask our solicitors for recommendations.
- We share our solicitor’s details and issue a Memorandum of Sale.
Sell With Certainty & Speed
- Our approach is transparent and ethical, which is why sellers trust us.
- 100% Discretion guaranteed.
- If you have another buyer, you can put us in a contracts race to see who completes first.
- Complete in 10 days or at a timescale that works for you. You are in control.
