Inheriting a property is often an emotionally complex experience. Alongside the grief of losing a loved one, there are practical and legal responsibilities that need to be addressed, and for many people, selling the property is the most significant decision involved.

Whether you are an executor managing an estate or a beneficiary looking to understand your options, this guide explains the key steps involved in selling an inherited property in the UK, from obtaining probate to completing the sale.

 

Before an inherited property can be sold, probate must be granted. Probate is the legal authority that allows an executor or administrator to deal with the estate of someone who has died. Until probate is in place, the property cannot legally be transferred or sold.

To apply for probate in England and Wales, the executor named in the will submits an application to the Probate Registry, along with the original will, a death certificate, and an inheritance tax form. If there is no will, a close relative can apply for letters of administration, which serve the same purpose.

The time it takes to obtain probate varies. Straightforward applications typically take between four and eight weeks, though complex estates, or those with inheritance tax to pay, can take considerably longer. It is worth beginning the probate application as early as possible to avoid unnecessary delays to the sale.

While waiting for probate, it is permissible to market the property and accept an offer, provided that completion does not take place until probate has been granted. Many families choose to do this so that a buyer is in place and ready to proceed as soon as the legal authority comes through.

 

Selling an inherited property can give rise to two potential tax liabilities: inheritance tax and capital gains tax. Understanding both before proceeding is important.

Inheritance tax is charged on the value of the estate at the time of death. If the estate exceeds the nil-rate band of £325,000, or £500,000 where the residence nil-rate band applies, inheritance tax at 40% will be due on the excess. This must be paid before probate can be granted, which can create cash flow challenges where most of the estate’s value is tied up in property. HMRC allows inheritance tax on property to be paid in annual instalments over ten years in some circumstances, which can ease this pressure.

Capital gains tax may be payable if the property increases in value between the date of death and the date of sale. The gain is calculated on the difference between the probate value, which is the market value of the property at the time of death, and the sale price. Everyone has an annual capital gains tax allowance, and any gain above this allowance is taxed at 18% for basic-rate taxpayers or 24% for higher-rate taxpayers on residential property.

To minimise capital gains tax, it is worth obtaining an accurate probate valuation and completing the sale as promptly as practical. The longer the property is held after death, the greater the risk of a taxable gain arising. A tax adviser or solicitor can help you understand your specific position.

 

Where more than one person inherits a property, all beneficiaries must agree to the sale before it can proceed. This can occasionally be a source of friction, particularly where beneficiaries have differing views on whether to sell, when to sell, or at what price.

If agreement cannot be reached, it may be possible to apply to the court for an order for sale under the Trusts of Land and Appointment of Trustees Act 1996. This is generally considered a last resort and can be costly and time-consuming, so it is always preferable to resolve disagreements through communication and, if necessary, mediation before reaching this stage.

Where one beneficiary wishes to keep the property and others wish to sell, it may be possible for that beneficiary to buy out the others at the agreed probate value or current market value. A solicitor can help structure this arrangement correctly.

 

Inherited properties are often in need of updating, particularly where the previous owner had lived there for many years. Before deciding how much work to carry out, it is worth considering the local market and the buyer profile.

In some cases, selling a property in its current condition and pricing it accordingly will attract buyers who are specifically looking for a renovation project. In others, carrying out basic cosmetic work such as decluttering, cleaning, redecorating, and addressing minor maintenance issues can significantly improve the saleability of the property and the price achieved.

A local estate agent can advise on what level of preparation is likely to add value in your specific market. It is also worth obtaining at least two or three valuations before setting an asking price, as the probate value may not reflect the current market.

 

Once probate has been obtained or is imminent, the property is prepared, and all beneficiaries agree, the property can be formally listed for sale. Choosing the right estate agent is a key decision that will affect both the price achieved and the speed of the sale.

When instructing an estate agent, make sure they are aware that the property is being sold as part of an estate. This is relevant for the conveyancing process, as the solicitor acting for the estate will need to deal with the legal title transfer alongside the sale.

 

The conveyancing process for an inherited property follows the same general steps as a standard sale, but with some additional complexity. The solicitor acting for the estate must transfer the legal title into the names of the executors or beneficiaries before or during the sale process, and all relevant probate documents must be provided to the buyer’s solicitor.

Where the property has been vacant for a period of time, it is worth ensuring that buildings insurance remains in place throughout. Many standard home insurance policies do not cover unoccupied properties, so a specialist unoccupied property policy may be needed.

It is also advisable to redirect post from the property and ensure that utility accounts are properly managed throughout the sale process, as outstanding bills or unresolved issues can cause complications at the point of completion.

 

At I Am The Agent, we help executors and beneficiaries sell inherited properties across the UK with straightforward fixed-fee packages and full listings on Rightmove and Zoopla. With over 17 years of experience and no commission to pay, we make the process of selling an inherited property as simple and cost-effective as possible.

Whether you are ready to list now or still waiting for probate, our team is here to support you at every stage of the process.

Ready to get started? List your inherited property with I Am The Agent today and find out how much you could save compared to a traditional estate agent.