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Okay, so, you’ve inherited a house. <\/span> <\/p>\n And that\u2019s why I\u2019m here with this article. In this guide, I\u2019ll take you through everything you need to know about selling an inherited property, from navigating probate to deciding how and when to sell. <\/span><\/p>\n <\/span><\/p>\n Let\u2019s start with the big question most people ask\u2026<\/span> <\/p>\n The first step to selling an inherited house is understanding probate. Sorting out probate can initially seem like trying to untangle fairy lights at Christmas. But trust me, it’s not as bad as it looks.<\/span><\/p>\n <\/p>\n In a nutshell, probate is the legal process of proving a Will (if there is one) and transferring ownership of the property to you, the new owner. Until probate is granted, you\u2019re not legally allowed to sell the house. That\u2019s why it\u2019s got to be a top priority.<\/span><\/p>\n <\/p>\n In the next section, we\u2019ll dive into the nitty-gritty of probate and inheritance tax.\u00a0<\/span><\/p>\n <\/p>\n <\/p>\n You can think of probate as the legal green light that says, \u2018Yep, you\u2019re good to go ahead and manage or sell the inherited property.\u2019 Until you have it, the house technically isn\u2019t yours to sell.<\/span> <\/p>\n Probate is the legal process of validating a Will (if one exists) and administering the estate of someone who has passed away. It ensures that all debts, taxes, and obligations are settled before the property is passed on to you or any other beneficiaries.\u00a0<\/span><\/p>\n <\/p>\n Now, if there\u2019s no Will (which actually happens a lot more often than you\u2019d think), this is called dying intestate. In this case, the rules of intestacy will dictate who inherits what. Either way, probate needs to be granted before you can sell the inherited house.<\/span> <\/p>\n <\/p>\n <\/span><\/li>\n <\/span><\/li>\n <\/span><\/li>\n<\/ol>\n You can do this online, but if paperwork isn\u2019t your thing, many people opt to get a solicitor\u2019s help.<\/span><\/p>\n <\/span><\/p>\n <\/p>\n Ah yes, inheritance tax. It\u2019s the taxman\u2019s way of reminding you that nothing in life (or death) is free. If the estate\u2019s value exceeds \u00a3325,000 (the current tax-free threshold in the UK), you might have to pay up to 40% in inheritance tax on anything above that.<\/span><\/p>\n <\/span><\/p>\n Inheritance tax threshold (2024 figures):<\/span><\/p>\n <\/span><\/li>\n<\/ul>\n For example, imagine you inherit a house worth \u00a3500,000. After deducting the \u00a3325,000 threshold, you\u2019re left with \u00a3175,000 subject to inheritance tax. At 40%, you\u2019d owe around \u00a370,000 to the taxman.<\/span><\/p>\n <\/span><\/p>\n <\/p>\n Luckily, HMRC gives you some options for how and when you pay. You can either pay it in full or opt to spread the payments over time. If the estate includes property (like the house you\u2019ve inherited), you can pay inheritance tax in 10 yearly instalments, but keep in mind that interest will be added. It\u2019s worth considering whether you might want to sell the house quickly to cover these costs.<\/span><\/p>\n <\/span><\/p>\n You\u2019ll need to complete form IHT400 (available from HMRC) and send it along with the probate application. HMRC will give you a payment reference number, and you can then pay either through a bank transfer, cheque, or online.<\/span><\/p>\n <\/span><\/p>\n By the way, even if you haven\u2019t completed probate or sold the property, HMRC expects the first inheritance tax payment within six months of the person\u2019s passing. So, don\u2019t delay \u2013 keep that deadline in mind.<\/span><\/p>\n <\/span><\/p>\n <\/p>\n <\/span><\/p>\n Now that we\u2019ve covered the legal basics, you\u2019re ready for the next step; deciding whether selling is the right option for you.<\/span><\/p>\n <\/p>\n <\/p>\n Once you\u2019ve wrapped your head around probate and inheritance tax, the next big question usually looms: \u2018Should I sell this inherited property, or keep it?\u2019<\/span><\/p>\n <\/b><\/p>\n It\u2019s a bit of a fork in the road, and both paths have their pros and cons. Let\u2019s break them down to help you decide what\u2019s best for your situation. After all, not all inherited houses are equal and what works for one person may not suit another.<\/span><\/p>\n <\/span><\/p>\n Keeping an inherited house can seem appealing. Maybe it\u2019s your childhood home, full of memories, or perhaps it\u2019s a property in a great location. But owning a second property isn\u2019t as simple as plonking the keys down on your mantelpiece and calling it a day. You\u2019ll have to consider the costs involved in maintaining it, potential rental income, or if you plan to move in, the emotional impact.<\/span><\/p>\n <\/span><\/p>\n Advantages of keeping the property:<\/b><\/p>\n <\/span><\/li>\n <\/span><\/li>\n <\/span><\/li>\n<\/ul>\n Disadvantages of keeping the property:<\/b><\/p>\n <\/span><\/li>\n <\/span><\/li>\n <\/span><\/li>\n<\/ul>\n On the other hand, selling the property might be the cleaner, less complicated option. In many cases, this is the route most people take; whether for financial reasons or simply to avoid the hassle of managing an extra property. Plus, with the current state of the UK housing market, there\u2019s always a demand for homes, especially in key locations.<\/span><\/p>\n <\/span><\/p>\n Advantages of selling the property:<\/b><\/p>\n <\/span><\/li>\n <\/span><\/li>\n <\/span><\/li>\n<\/ul>\n Disadvantages of selling the property:<\/b><\/p>\n <\/span><\/li>\n <\/span><\/li>\n<\/ul>\n <\/p>\n If you\u2019re not ready to sell, renting it out could be a great compromise. With the UK\u2019s rental market still going strong, you could generate solid rental income while holding onto the asset.<\/span><\/p>\n <\/span><\/p>\n Advantages of renting:<\/b><\/p>\n <\/span><\/li>\n <\/span><\/li>\n<\/ul>\n Disadvantages of renting:<\/b><\/p>\n <\/span><\/li>\n <\/span><\/li>\n<\/ul>\n There\u2019s no \u2018one-size-fits-all\u2019 answer here, and emotions play a significant role in the decision. If the property holds sentimental value, it might not be easy to let go. But be honest with yourself: can you handle the financial and emotional toll of keeping it? On the other side of the coin, if you\u2019re leaning towards selling, remember that it doesn\u2019t have to be a rushed decision. Take your time, assess your options, and speak to a financial adviser if needed.<\/span><\/p>\n <\/span><\/p>\n A quick checklist to help you decide:<\/b><\/p>\n <\/span><\/li>\n<\/ul>\n If you\u2019re still on the fence, it might help to chat with a trusted friend or family member who isn\u2019t so emotionally attached to the property. Sometimes, a fresh perspective is all you need to make the right decision.<\/span> <\/p>\n Okay, so with the decision to sell the property or keep it now being made, it’s time to start preparing the property for sale (if that\u2019s the route you\u2019ve chosen). And in the next section, I\u2019ll guide you through exactly how to get your inherited house market-ready.<\/span><\/p>\n <\/p>\n <\/p>\n Once you\u2019ve made the decision to sell, the next big task is getting your inherited property ready to sell. It might feel overwhelming, especially if it\u2019s been a while since anyone lived in the house, but don\u2019t worry, I’ve got you covered. We\u2019ll break this down into manageable steps to make sure the property appeals to the right buyers and fetches the best price possible. Now, you won\u2019t have to do any of this if you\u2019re selling to a fast cash buyer (as I cover in the next section), but I\u2019ve included it in case you\u2019re going to be selling with an estate agent). <\/span><\/p>\n <\/span><\/p>\n <\/p>\n First things first, you need to declutter. No buyer is going to see the potential of the property if it\u2019s filled with decades of old magazines, furniture that\u2019s seen better days, or quirky family mementos. The goal is to make the space feel open, clean, and neutral, allowing buyers to imagine themselves living there. <\/span><\/p>\n <\/span><\/p>\n Here\u2019s a tip: \u2018If in doubt, chuck it out!\u2019 Well, let\u2019s clarify that. Maybe don\u2019t chuck everything out, but do consider donating to charity or selling items that won\u2019t be needed. For personal items, it\u2019s best to store them away because buyers are here to see the house, not your life story.<\/span><\/p>\n <\/span><\/p>\n After decluttering, deep cleaning is an absolute must. We\u2019re talking about the kind of clean where everything sparkles; from the windows to the skirting boards. A fresh, clean space will make the house feel much more inviting and cared for. And let\u2019s be honest, no one is going to pay top money for a property that smells like last night\u2019s takeaway and has cobwebs in the corners. <\/span><\/p>\n <\/span><\/p>\n If the house needs some serious elbow grease, consider hiring professional cleaners. The cost is well worth the time and effort it saves, especially when first impressions can make or break a sale.<\/span><\/p>\n <\/span><\/p>\n
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\n<\/span>Well firstly, my condolences on your loss. Sorting through an inherited property can be an emotional rollercoaster. You\u2019re dealing with memories, paperwork, and working out what to do next, all while trying to maintain some sense of normality. It\u2019s no small feat. But while selling an inherited house can feel like stepping into a maze of legal and financial jargon, it doesn\u2019t have to be overwhelming. Not when you\u2019ve got a plan.<\/span><\/p>\n
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\n<\/span>\u2018How do I even begin?\u2019<\/span><\/p>\nUnderstanding probate and inheritance tax<\/b><\/h2>\n
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What is probate?<\/b><\/h3>\n
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What about inheritance tax (IHT)?<\/b><\/h3>\n
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How to pay inheritance tax<\/b><\/h3>\n
Summary of probate and inheritance tax<\/b><\/h3>\n
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\n Step<\/b><\/th>\n Action<\/b><\/th>\n Timeframe<\/b><\/th>\n<\/tr>\n<\/thead>\n\n \n Apply for probate<\/span><\/td>\n Submit PA1P \/ PA1A form, Will, and death certificate<\/span><\/td>\n Within a few months<\/span><\/td>\n<\/tr>\n \n Inheritance tax<\/span><\/td>\n Pay tax if the estate exceeds \u00a3325,000<\/span><\/td>\n Within 6 months<\/span><\/td>\n<\/tr>\n \n Probate decision<\/span><\/td>\n Wait for probate to be granted<\/span><\/td>\n 8-12 weeks (typically)<\/span><\/td>\n<\/tr>\n \n Selling the property<\/span><\/td>\n Once probate is granted, you can sell the house<\/span><\/td>\n Varies (can list immediately)<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\n<\/span>As with everything involving HMRC, paperwork is key, and deadlines aren\u2019t flexible. Keep everything documented, and if you\u2019re in doubt, it\u2019s always worth consulting a professional to ensure you don\u2019t miss anything.<\/span><\/p>\nIs selling the right choice? Assessing your options<\/b><\/h2>\n
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Key points to consider when deciding whether to sell or keep<\/b><\/h3>\n
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\n Option<\/b><\/th>\n Advantages<\/b><\/th>\n Disadvantages<\/b><\/th>\n<\/tr>\n<\/thead>\n\n \n Keep the property<\/b><\/td>\n Rental income, potential capital growth, sentimental value<\/span><\/td>\n Ongoing costs, maintenance, emotional strain, taxes<\/span><\/td>\n<\/tr>\n \n Sell the property<\/b><\/td>\n Immediate cash, no upkeep, emotional closure<\/span><\/td>\n Loss of potential growth, emotional attachment<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \n
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\n<\/span>Actually, on that topic, if you\u2019ve inherited a house from your parents, you might be interested in reading this other shorter article that I created: <\/span>https:\/\/springbokproperties.co.uk\/blog\/what-happens-when-you-inherit-a-house-from-parents<\/span><\/a><\/p>\nPreparing your inherited property for sale<\/b><\/h2>\n
Step 1: Decluttering and deep cleaning<\/b><\/h3>\n