Selling an inherited property within an estate
Published by Property Saviour
The UK's No.1 Fast House Sale Company
March 2, 2016 - Read time: 3 minutes
Inheriting a property will never be easy due to likelihood of it being an emotional time and if you ever lived in the house, it can make it difficult to know what to do.
Should one sell, move in, do it up or let it out?
The first issue is that this may not be just your decision, but a shared one if the house has been left to more than just one beneficiary. In this case, you will need to agree what to do next and this should be written, ideally using a solicitor.
If you want to move in, for example, then you will usually either rent or purchase the remainder from your other beneficiaries and it’s wise to have the property valued by an impartial local expert agent or surveyor so there aren’t any disagreements on what you need to pay and any negotiations can be carried out fairly.
In case you solely own the property the decision is up to you. Should you decide to put up for sale or indeed move in yourself and perhaps secure a mortgage to release some equity, the property will need to be registered in your name using the Land Registry and a legal company can help you do this.
Alternatively, you may want to sell or let the property and it’s worth putting some thought into which you do and carefully manage either so you maximise the returns or secure money quickly, whichever is important to you. In some cases, circumstances will assist you to decide.
Is the house currently mortgaged? In that case, you’ll want to check if there is insurance which will pay this off, that is usually case. If, for any reason there isn’t, then you will need to contact the bank and talk through what will happen next. It’s better if you want to retain the property and need a mortgage to talk to an independent mortgage broker such as Mortgage Advice Bureau so that you know all the best options which fit your circumstances.
Will the house need any renovation, for example making it legal to let? Redecoration is something but there can be a lot of hidden costs, particularly if you aren’t well versed regarding the property. You cannot or shouldn’t just move in or let it without checking it’s safe for you to do so or let legally to a tenant, even if it’s a friend of family member. A RICs or RPSA surveyor can save you a lot of time and energy in determining what has to be done. If you move in yourself, then do get an extra survey on the gas and electrics, if letting, this really is essential as you will need safety certificates to let it legally.
Time and money. If you take on the property and especially if you decide to let, it will need regular maintenance, and should anything go wrong you will need to have enough money to pay for the expense. Overtime this may cost tens of thousands of pounds for items like a new boiler, roof or windows.
Investing. Property ultimately is nearly always a good investment for the long term future. Letting can offer a regular income, however, the cash you’re making will be taxed as another source of income and the gains on the property subject to Capital Gains Tax (CGT). Sometimes the extra income may mean you lose some tax benefits you currently receive, so before you decide to keep the property and make money from that, check the tax implications with an independent financial advisor. New tax rules that come into force from April 2017 mean that all landlords will be taxed on their rent rather than profits. This means that you could pay as much as 40% tax on all rents received.
Whatever you decide, take professional advice from the legal company, an independent financial advisor and from a property surveyor. It may be wise to consider whether rental income after tax will be worth your while or whether selling the inherited property for a substantial cash lump sum will allow you to invest in a more tax efficient investments?
When you inherit a property you also inherit responsibilities. There are many possibilities for you as the owner of an inherited house, you can choose to keep the property and make it your primary home or very often families prefer to rent the property. For many people the best option is to sell the inherited house, to pay off any existing mortgage and distribute the rest of the funds among family members.
We will show you how to sell your inherited property
Selling a inherited house isn’t always easy, particularly an unpredictable property market. It could be challenging and exhausting maintaining your inherited property clean and also being well prepared for buyers to come for walk-throughs and bargaining with buyers and estate agent. Property Saviour gives you an option to avoid the hassle of traditional house-selling methods. We will be able to buy your inherited house for our own portfolio.
Will you buy an inherited house that needs renovating?
We know that inherited homes often need updating and renovations not only to become appealing to buyers but most importantly so that they can become mortgageable. Regardless of the properties condition we will endeavour to make you an offer for that’s higher than what our competitors can offer and still allows you to sell your house fast. We even have an option where we can invest in renovating the property, we will buy the majority of the house and remaining equity remains yours as a passive property investment.
Don’t hesitate to contact us if you think that the inherited property is too rundown for resale. We’ll gladly purchase your house without delay and we will always offer an honest and reasonable price.
Your opportunity to sell your inherited house without trouble
We specialise in buying probate properties fast. With a traditional estate agent you will have to deal with numerous viewings and appointments and there’s usually a frustrating wait. With Property Saviour we can agree to buy your property within 2 days and we will always complete at a timescale that suits you. We also cover all of the fees with selling your property. Call us on 0113 320 6700.