Call me back, please

What To Do When You Inherit a Property?

Property Saviour » Inherited Property » What To Do When You Inherit a Property?

Table of Contents

What to do when you inherit a property?

When you inherit a property, you have several options to consider:

  1. Keep the Property: You can choose to keep the property and use it as your primary residence, a vacation home, or a rental property. This option allows you to maintain control over the property and potentially generate income through rental income.
  2. Sell the Property: Selling the property can provide a significant influx of cash, which can be used to pay off debts, invest in other assets, or fund your lifestyle. This option is particularly appealing if the property is in disrepair or requires significant maintenance.
  3. Rent the Property: Renting the property can provide a steady stream of income, which can help offset the costs of maintaining the property. This option is ideal if you’re not ready to sell the property but still want to generate income from it.

Tax Implications

Inheriting a property can have significant tax implications. Here are some key considerations:

  • Capital Gains Tax (CGT): If you sell the property, you may be liable for CGT on any profit made from the sale. The CGT rate depends on your income tax band and the profit made from the sale.
  • Inheritance Tax (IHT): IHT is payable on the value of the property at the time of inheritance. The tax rate is 40% on the value above the nil-rate band (currently £325,000).
  • Stamp Duty Land Tax (SDLT): If you buy a new property using the proceeds from the sale of the inherited property, you may be liable for SDLT.

Legal Considerations

When inheriting a property, it’s essential to consider the legal implications:

  • Probate: You’ll need to obtain probate to transfer ownership of the property into your name. This process can take several months.
  • Will and Testament: If the property was left to you in a will, you’ll need to ensure that the will is valid and that you’re the rightful beneficiary.
  • Co-Ownership: If you inherit a property with others, you’ll need to consider the implications of co-ownership, including how decisions will be made and how the property will be managed.
what to do when you inherit a property
Inheriting a property can be an emotional experience, especially if the property holds sentimental value.

Personal Factors

Inheriting a property can be an emotional experience, especially if the property holds sentimental value. Here are some personal factors to consider:

  • Emotional Attachment: If the property holds sentimental value, you may want to consider keeping it in the family or finding a way to preserve its history.
  • Financial Situation: Your financial situation will play a significant role in your decision. If you’re struggling financially, selling the property may be the best option.
  • Lifestyle: If you’re planning to move to a new location or downsize, selling the property may be the best option.

 

Inherited Property Options

OptionProsCons
Keep the PropertyMaintain control potential rental incomeMaintenance costs, potential emotional attachment
Sell the PropertySignificant influx of cash, no maintenance costsEmotional attachment, potential CGT liability
Rent the PropertyA steady stream of income, potential long-term appreciationMaintenance costs, potential tenant issues

Can I inherit a property with a mortgage?

Yes, you can inherit a property with a mortgage. However, you’ll need to consider the implications of taking over the mortgage payments and potential CGT liability.

 

How do I transfer ownership of an inherited property?

You’ll need to obtain probate and transfer the ownership of the property into your name. This process can take several months and may require the services of a solicitor.

Can I sell an inherited property to a family member?

Yes, you can sell an inherited property to a family member. However, you’ll need to consider the tax implications and potential family dynamics.

Thinking of selling a property?

Property Saviour provides a real alternative to the hassle and uncertainty of dealing with estate agents or auctioning a house.

Whether you are inheriting a house from your parents or have a beneficiary living in an inherited home, we can help.

Sell your property in its current condition without the hassle. You choose when you want to complete the sale, which can be as quick as 10 days.

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.
calculator

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.

Sell with certainty & speed

Share This Article:

Related Articles

Skip to content