Selling An Inherited Property
When trying to sell an inherited property, there are a number of factors that need to be considered. These include value, tax, property condition, and following a sales process. In general, the two options available to every person that inherits a property, are to use an estate agent to find a buyer or look to use a cash-buying property company. More information on house cash-buying companies can be found on our What To Look For In A Property Buying Company page.
What Are The Steps To Selling An Inherited A Property?
The main way that people typically inherit properties is when they are explicitly listed in a will as the designated recipient of a house or flat once the person that wrote the will dies. Even if the deceased person did not have a will, you could still inherit a property, so it’s important to know the steps of inheritance, also known as “probate”.
The process of inheriting a property can be summarised in six steps:
- Check if a will is in place.
- Apply for probate.
- Sell the inherited property.
- Pay inheritance tax (if necessary).
- Pay capital gains tax (if necessary).
- Pay income tax (if necessary).
The absolute first starting point is to check if there is a will. As long as there is a will in place, the process is much easier. If there is no will, this is called “dying intestate” and it can be more complicated to decide what is to be done with a deceased person’s property and other assets. In this situation, the next of kin will be called “administrators” and will apply for what’s known as a grant of administration to secure the assets. These grants are given to banks and other entities in the hope of securing a letter of administration that gives someone legal permission to handle the estate. If successful, the administrators can then divide the deceased person’s various assets.
In terms of applying for probate, you first need to understand whether a grant of probate or letters of administration is needed. This then allows the estate to be valued which is the next step. After this, the legal probate forms need to be completed, which a solicitor will advise upon, and then there is the issue of tax. It is vital to take experienced professional tax advice so that you clearly understand the type of tax due and the estimated amount that will need to be paid.
Shall I Rent An Inherited Property?
Once the probate is completed and you are the legal owner of the property, the next decision that needs to be made is what to do with the actual property.
Some people who already own homes but inherit a property decide to rent out the latter. This not only avoids the potentially complicated process of trying to sell an inherited house or flat, but it also hopefully provides the beneficiary with extra income from the rental payments.
However, there can be some drawbacks to this option, particularly the fact that being a landlord can be a very stressful, time-consuming, and costly experience. If there are any problems at the property such as plumbing issues you will be expected to pay to fix them for your tenants.
You will also be liable for income tax on the money that you receive from rent payments. Depending on the level of tax, this may make renting out the home appear to not be a sensible financial decision.
How Do I Sell An Inherited Property?
The normal route to selling a property, which most people are familiar with, is to use an estate agent. This can be a lengthy process and it typically takes 6 to 12 months to sell a property in the UK. As there is no guarantee of when a property will sell, especially if the condition of the property is far from desired, this timeframe can actually be much longer. It can also be difficult to know which estate agent to work with as there are so many to choose from.
If an estate agent fails to sell a property, there are only really two options available – either reduce the listing price or change the estate agent. Whichever option you choose, you will ultimately be back to square one. This can be a frustrating reality, and also a costly one, due to utility bills that need to be covered on top of possible mortgage payments.
An alternative to using an estate agent is to find a property-buying company, such as Serene Homes, which guarantees to buy any property, in any location, in any condition following a free survey. What is often surprising is that once all costs and time are taken into consideration, the difference in the amount of money that you receive for your inherited property is not that different:
What is different is the advantages of selling with to company such as Serene Homes. Firstly, there is the speed of sale – Serene Homes can buy a property in as little as 7 days, which includes a free valuation to every person who agrees on the initial price offered for their property. More information can be found on our Free Valuation page.
Secondly, Serene Homes guarantees to buy every property once the free valuation is complete and the final price is agreed. The whole process with Serene Homes is easy, hassle-free and provides peace of mind that the inherited property will be sold as agreed.
Serene Homes has extensive experience of buying inherited properties and advising on the steps involved in doing so. What is of particular importance is the fact that Serene Homes will buy a property even if the condition is bad or there are belongings still left in the property. In fact, Serene Homes will help you with taking what belongings you need that are dear to you, then organise a clearance company to do the rest. The cost of which is fully covered by Serene Homes.
Taking on a property that needs a lot of work is often worrying and stressful, so contact our friendly team today to receive a free valuation on your property and sell your inherited property in a safe, secure, and stress-free way.