Yes, inherited property can be sold, but you must first obtain a Grant of Probate or Letters of Administration to prove your legal authority to sell, after which you can market and complete the sale whilst considering important tax implications including Capital Gains Tax and potential Inheritance Tax liabilities.
Recent government data shows that probate processing times have improved significantly, with the average now at 9.3 weeks for standard applications, down from over 15 weeks during post-pandemic delays. However, inheritance tax affects roughly 4% of UK estates annually, charged at 40% on values exceeding £325,000, whilst Capital Gains Tax applies at 18% for basic rate taxpayers and 28% for higher rate taxpayers on inherited property sales. The annual Capital Gains Tax allowance has reduced dramatically from £12,300 in 2021/22 to just £3,000 for 2024/25, meaning more inherited property sales now face tax liabilities than in previous years.
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Can Inherited Property Be Sold?
Before you can sell any inherited property, you must establish legal authority through the probate process. This involves obtaining either a Grant of Probate (when there’s a valid will) or Letters of Administration (when someone dies without a will). These documents prove you have the right to deal with the deceased’s assets, including selling property.
The probate application requires several key documents including the original will, death certificate, estate valuation, and inheritance tax forms. Without this legal authority, you cannot exchange contracts or complete any property sale, though you can market the property beforehand.
When Can You Sell an Inherited Property?
You can begin marketing an inherited property before probate is granted, but you cannot legally complete the sale until probate documentation is in place. This creates a unique situation where you can accept offers and agree terms, but the transaction remains subject to probate approval.
Properties held as “joint tenants” automatically transfer to surviving owners without requiring probate, allowing immediate sale. However, properties owned as “tenants in common” require probate even when other owners survive, as the deceased’s share forms part of their estate.
What Taxes Apply When You Sell Inherited Property?
Understanding the tax implications helps you plan your sale strategy effectively. Two main taxes affect inherited property sales: Inheritance Tax and Capital Gains Tax, each with different rules and exemptions.
| Tax Type | When It Applies | Rate | Calculation Method |
|---|---|---|---|
| Inheritance Tax | Estates over £325,000 (£500,000 for main residence to children) | 40% | Total estate value minus allowances |
| Capital Gains Tax | Property not your main residence | 18% (basic rate) / 28% (higher rate) | Sale price minus probate valuation |
| Income Tax | Rental income from property | 20% / 40% | Annual rental profits |
The table above illustrates how different taxes apply to inherited property sales. Inheritance Tax is calculated on the entire estate value, whilst Capital Gains Tax only applies to value increases since inheritance. If you move into the inherited property and make it your main residence, you may qualify for Private Residence Relief, potentially eliminating Capital Gains Tax entirely.
How Long Does the Inherited Property Sale Process Take?
The complete process from inheritance to sale completion typically takes 4-8 months, depending on estate complexity and your chosen selling method. The probate stage alone averages 9.3 weeks for straightforward applications, though complex estates can take much longer.
The timeline typically breaks down as follows:
1. Estate administration and probate application: 2-4 weeks
2. Probate processing by authorities: 9-16 weeks
3. Property preparation and marketing: 4-8 weeks
4. Sale negotiation and legal work: 6-10 weeks
5. Exchange and completion: 1-2 weeks
This timeline assumes no complications, but family disputes, missing documentation, or property issues can extend the process significantly.
What Are Your Options for Selling Inherited Property?
You have three main selling routes, each with distinct advantages depending on your priorities:
Traditional estate agents offer local expertise and marketing reach, potentially achieving higher prices but with longer timescales and no guarantee of completion
Property auctions provide speed and certainty once the hammer falls, typically completing within 28 days but potentially at lower prices
Property buying companies offer guaranteed purchases with quick completion, usually at 70-80% of market value but with complete certainty
Each method suits different circumstances. Estate agents work well for properties in good condition when time isn’t pressured, auctions suit properties needing work or in challenging markets, whilst property companies provide certainty when you need guaranteed completion.
Learning from Reddit Experiences
Reddit discussions reveal valuable insights about inherited property decisions. One user noted the importance of acting decisively: “My SIL is a solicitor and says in 95% of cases people would be better off selling the inherited property. Many people lose out trying to renovate to sell, or rent out.”
Another highlighted the financial implications: “If you inherit a property, you’ll lose your first-time buyer status for future purchases, which could cost thousands in lost Stamp Duty relief.” This insight shows how property gifts can have unexpected consequences beyond the immediate inheritance.
Property Saviour has observed these patterns repeatedly. Families who try to maximise every pound often end up worse off due to holding costs, renovation expenses, and market changes. Our experience shows that realistic pricing and prompt action usually deliver better overall outcomes than attempting to achieve theoretical maximum values.
Do You Need Probate to Sell Inherited Property?
Yes, probate is required in most cases to sell inherited property, as it provides legal proof of your authority to transfer ownership. The only exceptions are properties held as joint tenants, where ownership automatically transfers to survivors, or very small estates under certain thresholds.
Without probate, financial institutions, the Land Registry, and buyers’ solicitors cannot proceed with the legal transfer. This creates a legal barrier that cannot be circumvented, making probate application essential for most inherited property sales.
Can You Live in the Property Before Selling?
Living in an inherited property before sale is often possible and can provide tax advantages. If you make the inherited house your main residence, you may qualify for Private Residence Relief, which can eliminate Capital Gains Tax when you eventually sell.
However, you’ll become responsible for all ongoing costs including council tax, utilities, insurance, and maintenance. You must also consider whether moving disrupts your established life patterns and whether the property suits your long-term needs.
What Happens If Multiple People Inherit the Same Property?
When several beneficiaries inherit property together, unanimous agreement is required for sale decisions including timing, pricing, and buyer choice. This requirement often creates delays and family tensions, particularly when beneficiaries have different financial needs or live in different locations.
Clear communication helps resolve disagreements, but professional mediation or legal intervention sometimes becomes necessary. These disputes can extend timelines by months whilst ongoing costs continue accumulating, reducing the final inheritance value for everyone involved.
Property Saviour’s Transparent, Guaranteed Solution
Unlike estate agents and auctions with their fees, delays, and uncertainties, Property Saviour offers complete transparency and certainty. Our cash offer is exactly what you receive – no deductions, no commission, no hidden costs. We cover your legal fees up to £1,500 and can complete in as little as 10 days, giving you control over the timeline. No surveys mean no last-minute price reductions or deal collapses.
We’re genuine cash buyers with readily available funds, not companies requiring bridging loans or finance arrangements that can fail. Every formal offer includes proof of funds, demonstrating our ability to complete immediately. Our approach eliminates the stress, uncertainty, and ongoing costs that plague traditional selling methods. You receive certainty, speed, and fair value without any of the typical selling complications.
Whether you’re facing time pressure, property problems, or simply want guaranteed completion, Property Saviour provides the solution you need. We buy any property in any condition, anywhere in England, Scotland, and Wales. Our five-star reviews reflect our commitment to transparency and ethical dealings. Ready to experience the difference a guaranteed buyer makes? Request your call back today and discover how simple property sales can be when you work with genuine cash buyers who deliver on their promises.
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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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- 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.
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- Our approach is transparent and ethical, which is why sellers trust us.
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- 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.
