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Written by Ruban Selvanayagam
Ruban Selvanayagam
Ruban Selvanayagam is a professional cash homebuyer, private rented sector landlord, auction specialist, blogger and media commentator.
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Edited by James Durr
James Durr
James Durr is a passionate property entrepreneur with a strong foundation and background in business.
Selling a house always comes with a side dish of stress – and when you inherit the property, there’s a whole new set of complications.
Wondering whether you can sell a house left to you in a will and what to expect from the process? We’ve got you covered.
In this article, we’ll run through how to sell an inherited property, the probate process, inheritance and capital gains taxes alongside potential challenges that may crop up.
Is it Possible to Sell a House Left to Me in a Will?
The short answer is yes. In fact, selling a property left in a will isn’t just possible — it’s common practice.
However, there are a few hurdles to cross.
Executors and Beneficiaries
Before you can sell an inherited property in the UK, you need to be the legal owner.
If the deceased left a will, the process is simple enough. The will names an executor, who is the person responsible for managing the deceased’s estate. Sometimes the will names multiple executors.
A will may also specify beneficiaries, who inherit a share of the estate. Unlike executors, they don’t have a direct role in selling a house — but they can challenge a sale if they believe the asking price is too low.
Without a will, things become more complex. A married or civil partner and close relatives can still inherit the estate, but they’ll need to apply for letters of administration first.
Obtaining a Grant of Probate
Generally, an executor needs to apply for a grant of probate from the court, which gives them the legal authority to manage the deceased’s estate. This includes selling the house.
However, a grant of probate isn’t always necessary, such as when a property is jointly owned.
There is typically a fee to pay and it usually takes up to 16 weeks for approval, and sometimes even longer – so kickstarting the process straightaway is a smart move.
How to Sell a House Left to Me in a Will
Now you know you can sell an inherited property, it’s time to cover how you can do it.
1. Check Mortgage and Insurance
Once you’ve sorted out your probate and will (as covered above), the next step is to check the house’s mortgage and insurance status.
If there’s an outstanding mortgage on the property, you’ll need to let the lender know about the owner’s death. As the house’s new legal owner, you’ll become liable for the mortgage payments – although you’ll likely have a grace period first.
If the deceased had a life insurance policy, this could cover the mortgage.
As for home insurance, the policy might not continue after the owner’s death, so contact the insurer. If necessary, you can take out a new policy that suits your needs, such as unoccupied home insurance. This will help you avoid major issues further down the line.
2. Work Out the Estimated Property Value
Another responsibility of the executor is to figure out the house’s market value. This should reflect the property’s market value on the day its owner passed away (even if the value has since changed) and will depend on its type, size and condition amongst a range of other factors.
An estate agent can give you a free valuation, but it’s best to ask for opinions from a few local experts. You may also need to obtain a professional valuation from the Royal Institute of Chartered Surveyors (RICS).
3. List the Home for Sale
Once you’ve sorted out this basic admin, you’re ready to list the house.
Note that you don’t need to wait for the probate to list a house for sale — but the actual sale can’t go through until you have approval. Since this can be a lengthy process, you’ll need to consider whether you can sell the property quickly.
Since an executor only has six months to pay inheritance tax, some people opt for alternatives to a traditional estate agent to speed up the process. These include auction house sales or working with a home buying company like Property Solvers.
4. Distribute the Assets and/or Proceeds of Sale
If there are multiple beneficiaries (such as a few family members), the work isn’t over once the sale goes through.
The executor needs to share the proceeds of the sale with everyone, according to the will. They may also need to pay taxes on the inherited property, which we’ll get to next.
Will I Need to Pay Inheritance Tax?
The standard inheritance tax rate is 40%, which applies to an estate’s value above £325,000. So, if an inherited property was worth £350,000, you’d only need to pay 40% of the £25,000 above £350,000 — that’s a total tax burden of £10,000
This threshold increases to £500,000 if an estate is left to children or grandchildren.
Failing to pay inheritance tax will result in a fine from HMRC.
Will I Need to Pay Capital Gains Tax?
You may also need to pay capital gains tax if the property increases in value after you inherit it. For example, if you inherited a house with a value of £200,000 then sell it a year later for £250,000, you’ll have to pay tax on the gains of £50,000.
The capital gains tax rate is 18% on gains for basic-rate taxpayers, but it rises to 28% if you’re a higher-rate taxpayer.
On the plus side, there’s a tax-free threshold of £6,000 per year in the tax year 2023/2024. Also, if the property becomes someone’s main residence (even temporarily), you don’t have to pay capital gains tax.
What About Income Tax?
You won’t need to pay income tax if you sell an inherited house.
Income tax only applies if you earn income on your property — usually from letting it out. If you go down this route, remember to declare the rental income on your self-assessment form.
Challenges of Selling a Probate Property
Other than the lengthy probate process and the inheritance tax bill, selling inherited properties doesn’t tend to cause significant issues with buyers.
In fact, they can be attractive to buyers since the houses don’t come as part of a chain.
As with any sale, the difficulty of selling will depend on market factors such as price and demand.
Often, the main challenge for those who want to sell an inherited property is facing upfront costs (like paying outstanding bills), handling the admin, and selling the property before the inheritance tax is due.
Talking to a professional and understanding different selling options can help with this.
Alternatives to Selling an Inherited Property
Not sure if selling inherited property is the right choice? You can always decide to keep it instead.
In this case, you’ll need to transfer the home into your name on the property deeds. Then, you can either live there yourself or rent it out — and still sell later.
However, this is complex if there are multiple beneficiaries
Selling Inherited Property can be Smooth Sailing
There’s a lot to get your head around when selling an inherited house, from the legal process to understanding taxes. But you don’t have to figure everything out alone – even if you’re the sole executor.
At Property Solvers, we can guide you through the probate process, advise you on your specific situation, and help you explore options like quick cash sales that bypass estate agents. We also have our own quick buying company (where we can complete sales in as little as 2 weeks). To find out more, contact us today.