Inheriting a house can be a life-changing event, but it often comes with a mix of emotions and responsibilities.
At Property Saviour, we understand the complexities involved and are here to guide you through the process. Let’s cover what happens when you inherit a house and how to handle this situation.
Table of Contents
What Happens When You Inherit a House?
When you inherit a house, the first step is usually the probate process. This legal procedure confirms the validity of the deceased’s will and appoints an executor to manage the estate. Probate can take several months, sometimes even a year, depending on the complexity of the estate.
During this time, you might not be able to sell or make significant changes to the property. It’s wise to use this period to consider your options and plan your next steps. If you’re unsure about the probate process or need advice, don’t hesitate to reach out to us at Property Saviour.
Mortgage & Other Debts
One of the first things to check is whether there’s an outstanding mortgage on the inherited property. If there is, you’ll need to decide how to handle it. You might be able to take over the mortgage payments, refinance the loan, or pay it off if you have the means.
Remember, other debts associated with the property, such as unpaid utility bills or property taxes, may also need to be settled. T
The Probate Process
When someone passes away and leaves you a house, several steps must be taken:
- Probate: This legal process confirms the validity of the will and appoints an executor.
- Property valuation: The house must be professionally valued for tax purposes.
- Inheritance tax assessment: Determine if any inheritance tax is due on the estate.
- Transfer of ownership: Once probate is granted, the property can be legally transferred to you.
Dealing with Personal Belongings
Inherited houses often come with personal belongings of the deceased. Sorting through these can be emotionally challenging. Take your time, and consider involving family members in the process. You might want to keep some items as mementos, donate others, or sell valuable items.
Maintenance & Upkeep
While you’re deciding what to do with the property, you’ll need to maintain it. This includes paying for utilities, insurance, and any necessary repairs. If the property is empty, you might need to arrange for regular checks to prevent issues like burst pipes or break-ins.
Dealing with Coheirs
If you’ve inherited the property along with siblings or other relatives, you’ll need to agree on what to do with it. This can sometimes lead to disagreements. Open communication and possibly mediation can help resolve conflicts.
Your Options When Inheriting a House
After inheriting a house, you have three main options:
- Live in the property
- Rent it out
- Sell it
Each option has its own financial and practical implications.
Living in the Inherited Property
If you decide to move into the inherited house:
- You may not have to pay capital gains tax when you sell your current home.
- You may need to pay off any existing mortgage on the inherited property.
- You’ll be responsible for ongoing maintenance and bills.
Renting Out the Inherited Property
Becoming a landlord can provide a steady income, but consider:
- You’ll need to pay income tax on rental profits.
- You must comply with landlord regulations and safety standards.
- The property will require ongoing management and maintenance.
Selling the Inherited Property
Selling the house can provide a lump sum, but remember:
- You may need to pay capital gains tax on any increase in value since inheritance.
- The sale process can take time and may involve estate agent fees.
- You’ll need to agree on the sale if there are multiple beneficiaries.
Tax On Inheriting a House
Inheriting a house can have various tax implications:
| Tax Type | When It Applies |
|---|---|
| Inheritance Tax | On estates valued over £325,000 |
| Capital Gains Tax | When selling a property that’s not your main home |
| Income Tax | On rental income if you let the property |
The current inheritance tax threshold is £325,000, with an additional £175,000 if the property is left to direct descendants.
Dealing with a Mortgage on an Inherited Property
If the inherited house has an outstanding mortgage:
You may need to take over the payments.
The mortgage might be paid off by the deceased’s life insurance.
You could refinance or sell the property to clear the debt.
Always speak with the mortgage lender to understand your options.
Tips for Managing an Inherited Property
- Don’t rush into decisions. Take time to understand your options and their implications.
- Keep detailed records of all expenses related to the inherited property.
- If the property is unoccupied, inform the insurance company as this might affect the policy.
- Consider the long-term implications of your decision, not just the immediate benefits.
Do I have to pay stamp duty on an inherited house?
No, you don’t pay stamp duty when inheriting a property. However, if you buy out other beneficiaries’ shares, stamp duty may apply.
Can I sell an inherited house before probate?
You can’t sell the house before probate is granted. However, you can start marketing the property and accept offers, subject to probate.
What if I inherit a house with siblings?
If you inherit a house with siblings, you’ll need to agree on what to do with the property. Options include selling and splitting the proceeds, buying out their shares, or becoming joint landlords.
How long do I have to sell an inherited house?
There’s no time limit for selling an inherited house. However, if you’re not living in it, you may want to sell quickly to avoid ongoing costs and potential capital gains tax.
Skip the Auction Drama: Sell Directly to Property Saviour
Selling your home through traditional methods can be a frustrating experience. Estate agents often promise the world but deliver disappointment, with lengthy delays, endless viewings, and last-minute price reductions. Auctions may seem like a quick fix, but they come with their own set of headaches – hefty fees, no guarantee of sale, and the risk of your property going for a rock-bottom price.
Why put yourself through all that stress when there’s a simpler solution? Property Saviour offers a refreshingly straightforward approach to selling your home. We’re genuine cash buyers who can complete the purchase in as little as 10 days, with no surveys, no chains, and no nasty surprises. You’ll get a fair, no-obligation offer within 48 hours, and the price we agree is the price you’ll receive – guaranteed.
Don’t waste another moment worrying about your property sale. Request a call back from Property Saviour today and discover how easy selling your home can be. Our friendly team is ready to guide you through the process and answer any questions you may have. Take the first step towards a stress-free sale – you’ve got nothing to lose and everything to gain.
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.
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