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If you’re selling a probate house, there are complications you'll need to navigate. We cut through the jargon and guide you through the process.
KEY INFORMATION
Selling a probate house can be a complex process. Here’s the basics but read on for more detailed information on how the process works.
No. The people named in the will as beneficiaries have the right to transfer the home into their names. If you do this, the property will legally belong to the person or people whose name has been transferred onto the deeds.
The owner/s can decide whether to live in it, rent it out or sell the house at a later date. But inheritance tax may apply (read on to find out more).
Probate is the legal right to deal with someone’s property, other assets, money and possessions – also referred to as their estate – after they have died. If they have left a will, it will name an executor who will administer and organise the distribution of the estate as inheritance, once taxes and any debts have been paid.
If you’re at the start of the probate process, first read our guide Probate and Property: Your essential guide to find out everything you need to know about probate.
When someone dies and their home needs to be sold this is known as a probate sale. The most valuable asset in an estate is usually property so there’s usually a lot to consider when selling a probate house. You can take some comfort in the fact that you aren’t alone in trying to work out what’s involved; Todays Wills & Probate suggests that 1 in 10 properties on the UK market is a probate sale.
No. In most cases you can’t sell a house before you’ve obtained a Grant of Probate. This is a legal document that shows banks, building societies, the Land Registry and other organisations that you have the right to deal with someone’s estate after they have died.
There are some exceptions to this. For example, if you own the property in joint names with the deceased you as the surviving spouse or partner can sell without needing a Grant of Probate
Yes, you can market a probate property for sale before probate is granted. Although you’ll need to disclose in the marketing materials that the property is subject to probate and that the sale is contingent upon the grant of probate.
However, be aware that some buyers may be put off making an offer knowing that any delays in probate could mean they have to wait many months or even years for the sale to go through.
Before the pandemic, most cases took just a few weeks to process and be granted probate.
But at the beginning of 2024, the average time hit 16 weeks and still today is taking longer than historic levels. We hear of numerous stories that even the most straightforward case can take more than four months before the family is granted probate. So apply ASAP – see the steps below.
There isn’t a fixed timescale in which an executor must sell a probate house. An executor can’t be made to distribute an estate until one year has passed from the date of death – this is known as the ‘executor’s year’. And even after this date the executors can’t be forced to distribute the estate if there’s a good reason stopping them such as waiting on the sale of a property.
Any inheritance tax due must be paid within 6 months of the person’s death. This catches many people out as the whole process can often take from 6 to 12 months but could take longer. HMRC will start charging interest once the six months is up.
To avoid or reduce interest charges building up on the estate, one option is to pay a portion of the inheritance tax due within the six month period, even if the estate hasn’t been fully valued. In some cases a probate bridging loan will be taken out because the beneficiaries want to clear the inheritance tax rather than bear any interest. Some will also take out a larger bridging loan and use it to renovate the property to increase the value before it’s sold.
For bridging loans, homeowner loans, bad credit mortgages and more speak to specialist lending brokers now.
If your estate is worth more than £325,000, inheritance tax will be payable at 40% on the amount above that threshold. But if you inherit your spouse or civil partner’s estate you won’t pay inheritance tax. Plus, you’ll also inherit their unused nil-rate band.
However, if you’re leaving property and it’s going to direct descendants including children or grandchildren, you’ll get an extra allowance of £175,000, this is called the ‘main residence nil-rate band’. Again, this can be passed from one spouse to another so a couple can leave an estate worth up to £1 million without being liable for inheritance tax.
For example, what happens if David dies leaving an estate worth £600,000 including property?
Not everyone qualifies for the full allowance: if your total estate’s value is more than £2m, the additional allowance tapers off and falls by £1 for each £2 above the threshold. Find more information in our guide on Inheritance tax on property.
Here’s a step-by-step guide to selling a probate house:
You’ll need the estate valued in order to get probate granted. The property valuation for probate should be the market value if it had been sold on the date of the death and is usually done with a valuation survey.
The person or company named on the Grant of Probate is obliged to sell the property for the open market value. If the executors sell a property for under market value, they could stand accused of failing to fulfil their duty, and the beneficiaries could pursue a claim against them.
It’s also essential to get a property valuation survey done to help work out what inheritance tax and capital gains tax might be due.
It’s also worth noting, a probate valuation is different from an estate agent’s market valuation. Estate agents value properties for sale, while surveyors value properties for probate purposes.
Get instant quotes from Chartered Surveyors in your local area.
The executor will need to apply for a Grant of Probate from the Probate Registry. You’re not able to make any financial plans or sell a property until you’ve received a Grant of Probate.
Applying for a Grant of Probate is usually one of the first administrative actions that you take after someone has died. Find out more details about this process in our guide Probate and property: Your essential guide.
The next step when selling a probate house is to choose a conveyancing solicitor to handle the legal work involved in selling a property. Get an overview of how much conveyancing fees cost in our guide and see our list of questions to ask your conveyancer.
Get instant quotes from regulated and reviewed conveyancing solicitors that cover your area.
Once you’ve instructed your conveyancer, if not before, dig out all the documents you might need for the sale. You’ll ned to locate the deeds, a copy of the lease if it’s a leasehold, utility bills, warranties and guarantees. For more read 11 documents you need to sell a house.
You’ll want the best estate agent for the job when selling a probate house. Use our handy tool to find the best local estate agents based on how quickly they sell, success rate and likelihood of achieving asking price. Find the best estate agent for you with our free local estate agent comparison tool
Also, read our guide on Estate agent fees to find out how much you should pay and how to get the best deal. You’ll want to keep costs down so we explain how to negotiate to get the best deal and explain how much you should be looking to pay. Our guide The Cheapest Way to Sell A House may also be of interest.
When selling any house, probate included, you’ll need to have at least applied for an EPC by the time it goes on the market. It makes sense to get an EPC sorted out early so it doesn’t end up slowing down the sale process. You can get a no-obligation EPC quote from qualified Domestic Energy Assessors in your local area today. Once you have your quotes, find the best price for you and book them in. They’ll do a site visit and can produce the EPC usually for the next day.
However, EPCs were introduced in 2007 and are valid for ten years so the property could already have one. You can check if the property already has an EPC on the EPC register if it’s in England and Wales. For properties in Scotland check the Scottish EPC register and likewise the Northern Ireland EPC register.
It’s crucial to make sure the property is insured when you’re selling a probate house. And be sure to tell the insurer that the property is unoccupied.
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As we explain above, executors have a legal obligation to sell for the market value when selling a probate house. So bear this in mind if you’re dealing with offers and potentially considering taking a low offer in order to sell quickly. Also, you may accept an offer on the house before probate has been granted. But you can only exchange contracts once a grant of probate is obtained.
Now to one of the final steps of selling a probate house. Once the buyer’s and seller’s conveyancing solicitors have agreed the terms of the sale, they can exchange contracts and a completion date will be set. At this point the sale becomes legally binding and either side will almost certainly pay major penalties if they pull out. Find out more in our guide Exchange of contracts explained.
You’ll need to make sure the house is clear of all belongings before it is sold. This can be a painful process so make sure to leave enough time. For any items you and other beneficiaries aren’t keeping, you may choose to use a house clearance firm like our partners LoveJunk.
The final stage of the process of selling a probate house is completion. This is when property ownership transfers from the seller to the buyer. The buyer can collect their keys and move into their new home. At this point, the remaining funds from the sale will be distributed to the beneficiaries.
The costs of selling a probate house shouldn’t be any more than selling any other type of property. Read more in our guide on the costs of selling a house. However, if you need to hire extra services like a house clearance firm this will add to your costs.
Once probate has been granted, the fact you can sell chain-free should be appealing to buyers. And if you’ve priced the property right, you should get plenty of offers.
Yes. Executors can sell property without the approval of all beneficiaries because their duty is to act in the best interests of the estate and follow the instructions set out in the will. So if it’s written in the will that the property should be sold, it is the executors’ duty to sell the property.
However, if no instructions are written in the will relating to the property, executors should act reasonably and in the best interests of the estate, including getting a fair market price. If there’s a disagreement between beneficiaries regarding the sale of the property, as an executor you may need to seek legal advice. The sale of the property can also be dependent on how it was owned by the deceased, whether it was held in their sole name, as joint tenants with another person or as tenants in common with another person. Each of these circumstances are viewed differently under the law and must be managed accordingly. Again, getting legal advice can be beneficial.
If someone dies without a Will (called dying intestate), you can’t get a Grant of Probate. You’ll need to obtain Grant of Letters of Administration instead. Once this is obtained, you can sell property, pay off debts, close accounts and divide up the estate in accordance with the law. Only spouses, civil partners, children, and other close relatives can inherit under these rules. See more about the intestacy rules on the government page “Intestacy – who inherits if someone dies without a will”
Dealing with an estate and need the assistance of a lawyer? Compare quotes from trusted lawyers who can assist you with your needs.
An executor is legally responsible for carrying out the instructions in the person’s will and handling their estate – this means everything they own including money, property and possessions.
When someone dies and their home is being sold, this is known as a probate sale.
Some retirement property leases require you to pay an ‘exit fee’, also known as transfer fees, event fees or departure fees, when the property is sold or sub-let. Exit fees of 1% or 2% of the sale price are common but can be as high as 28% of the sale price.
Also, bear in mind it can take months or even years for retirement properties to sell in some areas. During this period, service charges are typically payable, even if the flat is unoccupied. This could amount to tens of thousands of pounds. Read our guide on the Hidden costs of retirement properties.
If you’re selling a house on behalf of someone who has died you don’t need to pay council tax until after you get probate, as long as the house stays empty.
After probate is granted, you may be able to get a 6 month council tax exemption as long as the property is still unoccupied and still owned in the name of the person who died. Read our guides on Inheriting a house and Probate: your essential guide.
There are a number of potential benefits:
– You may get a bargain: Some sellers may hold out for months or years to get a price they think their home is worth. But if you’re buying a probate house, the property will have been valued and while the executor has a duty not to sell for under market value, it’s less likely they’ll want to hold out for an unrealistically high price. See our guide on making an offer and negotiating for more advice.
– No chain: Another benefit is there will be no chain above you. So the sale should be less likely to fall through.
But there are downsides to consider before buying a probate house including:
– Beware if probate hasn’t been granted yet: A property can be marketed if probate hasn’t been granted yet but it cannot be sold. So be aware that probate delays could mean the sale takes place many months later than you’d hoped.
– Conveyancing delays: If an executor is selling a probate house, they may have difficulty in locating certain documents needed for the sale.
– There may be a lack of knowledge: When you buy a property, you’ll receive a TA6 property information form as part of the buying process. Information contained within it must be correct or ‘the buyer may be able to make a claim for compensation or refuse to complete the purchase.’ However, if an executor is selling a probate house, they may only have a limited knowledge of the property. So we advise buyers to get a house survey done when buying a house but it’s especially important if you’re buying a probate house.
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