If you’ve inherited a house and want to sell it, you’ll need to wait for probate to be granted before you can complete the sale, though you can market the property beforehand, and the process involves several key steps including valuing the estate, paying any inheritance tax due, and choosing between traditional estate agents, auctions, or property buying companies.
Research shows that 43% of Brits are counting on inheriting property to secure their financial future, with the average inheritance expectation being £195,687, of which £182,621 comes from property alone. However, only 7% of landlords actually acquired their first rental property through inheritance, suggesting most people choose to sell rather than become accidental landlords. With only 1 in 20 estates paying Inheritance Tax and 30% of inheritors planning renovations before selling, the financial landscape around inherited property is more complex than many initially realise.
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I inherited a house. Now what?
Before you can sell an inherited property, you must obtain either a Grant of Probate (if there’s a will) or Letters of Administration (if there’s no will). This legal document proves your authority to deal with the deceased’s assets, including selling property.
The probate process normally takes 6-12 weeks, though delays are common. During this time, you can market the property but cannot exchange contracts until probate is granted. The executor has up to 12 months to distribute the estate, known as the ‘Executor’s Year’, but inheritance tax is due within 6 months of death, which can create pressure to sell quickly.
What Documents Do You Need to Sell an Inherited Property?
To proceed with selling an inherited house, you’ll need several essential documents:
Original will and death certificate
Grant of Probate or Letters of Administration
Property deeds and Land Registry documents
Estate agent or professional valuation for probate purposes
Inheritance tax forms (IHT205 or IHT400)
Energy Performance Certificate
Property Information Form and Fittings Form
How Much Tax Will You Pay When Selling an Inherited Property?
Understanding the tax implications is essential when selling inherited property. The main taxes to consider are Inheritance Tax and Capital Gains Tax, which can significantly impact your final proceeds.
| Tax Type | When It Applies | Rate | How It’s Calculated |
|---|---|---|---|
| Inheritance Tax | Estates over £325,000 (£500,000 for main residence to children) | 40% | Total estate value minus allowances |
| Capital Gains Tax | Property value increase since probate | 18% (basic rate) / 28% (higher rate) | Difference between sale price and probate value |
The table above shows how these taxes apply to inherited property sales. Inheritance Tax is paid on the total estate value above the threshold, whilst Capital Gains Tax only applies if the property has increased in value since the probate valuation. You can reduce Capital Gains Tax through allowable expenses including solicitor fees, estate agent costs, and improvement expenses.
Should I Renovate Before Selling My Inherited Property?
Many inheritors face the dilemma of whether to invest in renovations before selling. The answer depends on the property’s condition, your available funds, and local market conditions.
Properties inherited from elderly relatives often require updating or repairs. Common issues include outdated décor, damp problems, electrical work, and general maintenance. Whilst some improvements can add value, you need to be careful not to over-invest in renovations that won’t provide adequate returns.
Light renovations like redecorating and new carpets often provide good returns, whilst major structural work may not be cost-effective unless you have significant spare capital and local market knowledge.
What Are My Options for Selling an Inherited House Quickly?
You have three main options when selling inherited property, each with distinct advantages and drawbacks:
Traditional Estate Agents: Offer local expertise and marketing reach, potentially achieving the highest sale price, but the process can take several months with no guarantee of completion.
Property Auctions: Provide speed and certainty once the hammer falls, but sale prices may be lower than private sales, and you’ll face auction fees.
Property Buying Companies: Offer guaranteed purchases with quick completion times, though typically at 70-75% of market value, making them ideal when you need certainty and speed.
Real-Life Example: Steve’s Experience in Oxford
Steve from Oxford inherited his grandmother’s three-bedroom house valued at £220,000. The property had been empty for six months and needed substantial work including damp treatment, electrical updates, and complete redecoration.
“I was overwhelmed by everything that needed doing,” Steve explains. “I got quotes for renovations totalling £18,000, but I couldn’t afford the upfront costs whilst still paying my own mortgage. Three potential buyers pulled out after surveys, citing repair costs. The stress was affecting my work and family life.”
When Steve contacted Property Saviour, we understood his situation completely. We provided a guaranteed purchase at a fair price, took care of all the legal work, and completed within three weeks. “It was such a relief to have certainty,” Steve says. “Property Saviour removed all the stress and uncertainty from what was already a difficult time.”
Why Do Many Inherited Property Sales Fall Through?
Property sales involving inherited houses have higher fall-through rates than standard sales, often due to several common factors. Buyers frequently underestimate repair costs after surveys, leading to reduced offers or complete withdrawal. Properties that have been empty for extended periods often develop issues like damp, pest problems, or general deterioration.
Family disputes between beneficiaries can also cause delays and complications. When multiple people inherit a property, disagreements about asking price, timing, or whether to renovate can stall the process for months.
Many inherited properties also have emotional attachments that can cloud business decisions. Sellers might hold out for unrealistic prices or struggle to make necessary compromises.
Can I Sell Before Probate is Granted?
You can market an inherited property before probate is granted, accept offers, and even agree on terms, but you cannot legally exchange contracts until you have the Grant of Probate or Letters of Administration.
This situation creates uncertainty for both buyers and sellers. Many buyers withdraw during lengthy probate delays, particularly if they’re in a chain or have mortgage arrangements that expire. Cash buyers or property companies are often more willing to wait for probate, making them more reliable purchasers.
What Happens If There Are Multiple Beneficiaries?
When several people inherit a property, the situation becomes more complex. All beneficiaries must agree on the sale, including the asking price and choice of buyer. If agreement cannot be reached, the matter may need to be resolved through the courts, which is expensive and time-consuming.
The executor has the legal authority to manage the sale process, but they must act in the best interests of all beneficiaries. This can create tensions, particularly if beneficiaries live in different areas or have varying financial needs.
How Long Does It Take to Sell an Inherited Property?
The timeline for selling inherited property depends on several factors including the probate process, property condition, and your chosen selling method.
1. Probate Process: 6-12 weeks minimum
2. Property Preparation: 2-8 weeks (depending on work needed)
3. Marketing and Sale: 8-16 weeks for estate agents, 2-4 weeks for property companies
4. Legal Process: 6-8 weeks from offer acceptance to completion
In total, expect 4-9 months from start to finish if using traditional methods. Property buying companies can significantly reduce this timeline by providing guaranteed purchases that don’t fall through.
Common Problems When Selling Inherited Properties
Inherited properties often come with unique challenges that can complicate sales. Properties may have been neglected in the owner’s final years, leading to maintenance issues. Hoarding is surprisingly common in inherited properties, requiring professional clearance before viewings can take place.
Some inherited properties have Japanese knotweed, subsidence, or other structural problems that deter mortgage lenders. These issues can make properties unsellable through traditional methods, leaving auctions or cash buyers as the only viable options.
Legal complications can also arise, such as unclear property boundaries, missing deeds, or charges registered against the property. These issues need resolving before completion can take place.
Learning from Others’ Experiences with Inherited Property Sales
Many families who’ve been through this process share similar experiences. The overwhelming consensus from those who’ve successfully sold inherited properties is that seeking professional advice early saves time and stress.
One common theme emerges: people who try to maximise every pound often end up worse off due to holding costs, stress, and opportunities missed. Properties deteriorate whilst sitting empty, insurance and council tax costs mount up, and market conditions can change.
The most successful sellers are those who set realistic expectations, make decisions based on facts rather than emotions, and choose selling methods that match their priorities – whether that’s maximum price, speed, or certainty.
Property Saviour understands the unique challenges faced by families dealing with inherited properties. We provide guaranteed sales that remove uncertainty and stress from an already difficult time. Our service is designed specifically for people who need certainty and speed, offering transparent, fee-free purchases that allow families to move forward with confidence.
From ‘Help!’ to ‘Sold!’: Property Saviour’s Quick-Sale Magic
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 the constant threat of buyers pulling out at the last minute. Auctions might seem like a quick fix, but they come with their own set of headaches – hefty fees, a limited pool of buyers, and the risk of your property selling for far less than you’d hoped.
Enter Property Saviour, your knight in shining armour in the world of property sales. We offer a refreshingly straightforward approach – no fuss, no hidden costs, just a fair cash offer and a guaranteed completion date. Our team understands the stress of selling a home and we’re here to take that burden off your shoulders. With Property Saviour, you can wave goodbye to the uncertainty and endless waiting that comes with traditional selling methods.
Why not take the first step towards a hassle-free sale? Request a call back from our friendly team today. We’re ready to listen to your needs and offer a solution tailored to your unique situation. Don’t let your property become a millstone around your neck – let Property Saviour show you how easy selling your home can be.
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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.
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- We share our solicitor’s details and issue a Memorandum of Sale.
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