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Should I Sell or Rent Inherited Property?

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Whether to rent or sell an inherited property depends on your financial situation and emotional attachment.  If you have inherited a house from your parents, it is important to weigh up your options.

Here’s a comprehensive guide to help you make an informed decision.

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Should you sell or rent an inherited house?

Consider the costs of selling or renting, including taxes, maintenance, and potential income.  Assess your emotional readiness to part with the property or manage it as a rental.

These are some of the questions you should consider:

What are the tax implications of selling an inherited property?

When you sell an inherited property, you may be liable for Capital Gains Tax (CGT) if the property’s value has increased since you inherited it. The standard rate for Inheritance Tax is 40%, charged on the part of the estate above the threshold.

Example: If you inherited a property valued at £300,000 and sold it for £350,000, you might owe CGT on the £50,000 gain.

Can I sell an inherited property without probate?

You can sell an inherited property without probate if you are the surviving owner and the property was owned as joint tenants. Otherwise, probate is required to transfer ownership legally.

What happens if I inherit a house with siblings and one of them doesn’t want to sell?

You have three main options:

  1. Buy Out: Purchase your sibling’s share.
  2. Rent Out: Rent the property to your sibling.
  3. Order for Sale: Apply to the court for an order for sale.

Steps to Selling an Inherited Property

Inheriting a property is an emotional time, and if you ever lived in the house, it could make it difficult to know what to do. 

You may have inherited a property with regulated tenancy and wish to sell it. We can help with this because we like to buy properties with long-term tenants. Their rent may be lower than market rent, but they tend to look after their homes.

  1. Clear the Property: Remove personal items and clean thoroughly.
  2. Get a Valuation: Obtain valuations from multiple estate agents.
  3. Prepare for Sale: Make necessary repairs and improvements.
  4. List the Property: Choose the best method (estate agent, auction, or property-buying company such as Property Saviour).
  5. Negotiate Offers: Work with your chosen method to complete the sale.

 

Is your inherited house currently mortgaged?

Please check if there is a life insurance policy that can pay off the balance.  If this is not the case, you will need to contact the bank to ask for a grace period to settle your probate affairs. 

Our guide goes through more details in what to do if you have inherited a house with a mortgage.  Ignoring this could result in repossession proceedings and potentially losing your inherited property or ending up with a large unexpected bill from mortgage lenders’ solicitors.

Don't Let Delays Cost You: Sell Your Inherited Property Quickly

Inheriting a property can be a blessing, but delaying its sale can quickly become a financial burden.

From mounting costs to potential risks, procrastinating on selling an inherited property can have severe consequences. Here’s why you should act swiftly and sell your inherited property without delay.

 

Capital Gains Tax Interest

When you inherit a property, the clock starts ticking on paying Capital Gains Tax (CGT) on any increase in value since the previous owner’s death. CGT is due within 60 days of the property’s sale, but if you delay the sale, interest charges from HMRC can quickly accumulate, eroding your potential profits.

 

Professional Executor Fees

If you rely on professional executors to handle the estate, their fees can be substantial. Charged by the hour, these fees can sometimes reach up to 5% of the estate’s value. The longer the property remains unsold, the higher these costs will climb.

 

Ongoing Maintenance and Insurance Costs

Even an unoccupied property requires ongoing maintenance and insurance. From utility bills to necessary repairs, these costs can add up quickly, diminishing the value of your inheritance.  Empty properties often require specialised insurance at higher premiums.

 

The Risks of Inaction

These are some of the risks involved with inaction:

 

Break-ins, Vandalism, and Arson Attacks

Vacant properties are prime targets for criminal activities such as break-ins, vandalism, and even arson attacks. These incidents can not only cause significant damage to the property but also pose safety risks and legal liabilities.

 

Deterioration and Devaluation

Without regular maintenance and occupancy, inherited properties can quickly fall into disrepair. From leaks and mould to structural issues, neglected properties can rapidly lose value, making them harder to sell and potentially costing you more in repairs.

 

The Solution: Sell Quickly and Securely

By acting decisively and selling your inherited property through a reputable property-buying company like Property Saviour, you can avoid the financial and legal pitfalls of delays. Our streamlined process ensures a quick and hassle-free sale, allowing you to maximise the value of your inheritance while minimising risks and costs. Don’t let procrastination turn your inherited property into a financial burden. Contact Property Saviour today and unlock the full potential of your inheritance without the stress and uncertainty of delays.

Steps to Renting Out an Inherited Property

The first issue is that this may not be just your decision but a shared one if the house has been left to more than just one beneficiary. In this case, you will need to agree on what to do next, and this should be a written contract, ideally using a solicitor.

  1. Decide Ownership Structure: Choose the most tax-efficient method. A limited company is the most efficient structure, but you will have to pay SDLT and other taxes.
  2. Finance Options: Consider taking out a mortgage or remortgaging.
  3. Get Permissions: Obtain consent to let from your lender and arrange landlord insurance.
  4. Prepare the Property: Ensure it meets all legal requirements and is habitable.
  5. Find Tenants: Market the property and screen potential tenants.
  6. Manage the Property: Handle ongoing maintenance and tenant issues.
inherited bungalow
The first issue is that this may not be just your decision, but a shared one if the house has been left to more than just one beneficiary.

Should I sell or keep an inherited property?

Landlords are often portrayed in the media as being filthy rich.  With constant landlord bashing in the media, there are over 200 different types of government legislation to comply with.  Even the most competent letting agents struggle, and ultimately, the buck stops with you as a landlord.

Will the house need any renovation, for example, making it legal to let? Redecoration is something, but there can be a lot of hidden costs, particularly if you are not familiar with the landlord law.

You should not just move in or let it without checking it’s safe for you to do so or let it legally to a tenant, even if it’s a friend or a family member. A RICS surveyor can save you a lot of time and energy in determining what must be done. If you move in yourself, then do get an extra survey on the gas and electrics; if letting, this is essential as you will need safety certificates to let it legally.

If you decide to let it, the property will need regular maintenance, and should anything go wrong, you will need to have enough money to pay for the expense. Over time, this may cost tens of thousands of pounds for items like a new boiler, roof or windows.

Whatever you decide, take professional advice from an independent financial advisor and a RICS property surveyor.  It may be wise to consider whether rental income after tax will be worth your while or whether selling the inherited property for a substantial cash lump sum will allow you to invest in more tax-efficient investments.

Can I sell my inherited property online?
The secondary benefit of selling your inherited property for cash is that your probate fees will be substantially reduced. 

Selling vs. Renting: Pros and Cons

This table shows pros and cons for selling or renting an inherited property:

AspectSelling via Estate AgentSelling via AuctionSelling to Property SaviourRenting Out
Time to Sell/Rent14-23 weeks6-8 weeks2 weeksMaximum 4 weeks
Success Rate51%78%100%100%
Sale PriceHighest possibleUnknown until auction day80-85% of market valueN/A
Viewings/ChainsInconvenient times, many in chainsViewings and surveysNo viewings or chainsTenant viewings
FeesAgent and legal feesAuction and legal feesNo fees.  Legal costs paid.Management fees
ContractLengthy, can’t withdrawCommitted to the auction processNo contracts, flexibleRental agreement

Unlock the Potential of Your Inheritance

Inheriting a property can be a significant financial boon, but managing or selling it can also be a daunting task. Property Saviour offers a seamless, stress-free solution to help you unlock the full potential of your inheritance. Imagine what you could achieve with the immediate cash from selling your inherited property:

  • Pay off your mortgage: You can free yourself from the burden of monthly mortgage payments and gain financial peace of mind.
  • Extend Your Home: Use the funds to add that much-needed extension, creating more space and increasing the value of your current home.
  • Go on a Dream Holiday: Treat yourself and your loved ones to the vacation of a lifetime, creating unforgettable memories.
  • Work Part-Time: Gain the financial flexibility to reduce your working hours and enjoy a better work-life balance.

 

Why Choose Property Saviour?

  • Real Cash Buyers: We are genuine cash buyers, meaning no delays or uncertainties associated with bank loans or bridging finance.
  • No Hidden Fees: We cover all legal fees, ensuring you receive the full agreed amount without any deductions.
  • Quick and Guaranteed Sale: The sale can be completed in as little as 10 days, and there is no risk of the deal falling through.
  • No Surveys or Viewings: We buy properties in any condition, so you won’t have to deal with multiple viewings and intrusive surveys.
  • Honest and Transparent: We honour the price we agree on and never lower it before the exchange of contracts.
 
 

Realise Your Dreams with Property Saviour

Selling your inherited property to Property Saviour is not just about the financial gain; it’s about the opportunities and freedom it brings. Whether you want to pay off debts, invest in your home, or simply enjoy life more, we make the process easy and rewarding. Contact Property Saviour today and take the first step towards transforming your inheritance into the life you’ve always dreamed of.

Naturally, it is in the interest of all beneficiaries that the sale can be concluded quickly and at a fair price, as delay can reduce your share of inheritance money.

The property may not be fully insured once it has been unoccupied for more than 28 days.  Insuring an empty property can cost thousands of pounds per year because it can attract the attention of squatters, criminals who want to steal copper pipes, amongst other things and unruly children “playing at your property” and vandalising it.  

Do not worry about the condition of your inherited property.  We are non-judgemental property professionals looking to breathe a new lease of life into properties.  We will buy your property in its current condition.

Our service is 100% free.  Our cash offer is what you will receive with zero deductions and no hidden fees.  Be careful, as there are “We Buy Any House Companies” that will make you an unbelievable offer only to delay, frustrate you months down the line and then pay you a lot less once they have found faults with your property.  We have an open and honest approach, which can be seen in our client reviews.

Give us a call on 0113 320 6700 or make an enquiry now to see how we can help you.  We are very quick to return your call, and an offer can be made usually within 24 hours.

Sell with certainty & speed

auction hammer

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.
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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

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.
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