XTREME PROPERTIES Ltd
Sell Your Probate Property
When someone passes away, their assets go through probate, a legal process to validate the Will (if any) and settle debts and taxes. Probate grants rights to distribute assets and sell property. We guide you through this process and explain how We Buy Any Home can simplify it.
Keep in mind, inheriting a property doesn't grant immediate selling rights; probate must finalize ownership. We navigate the differing probate laws of England & Wales and Scotland, ensuring clarity on legal requirements.
What is Probate?
Probate is the legal process of authorizing the distribution of a deceased person's assets.
When an estate of substantial value exists, probate is required. The courts validate the Will and ensure compliance with beneficiaries' wishes.
In England & Wales, property under probate cannot be sold until probate is granted, except when a joint owner exists, who may sell with a death certificate. In Scotland, the equivalent process is called 'Confirmation', with similar principles applying.
Are You Named in the Will as the New Owner?
Being named in a Will as a new homeowner doesn't automatically grant ownership of the property. The deceased's assets must undergo probate to confirm the transfer of ownership. During probate, challenges to the Will can prevent property transfer if successful.
An exception is if you were a joint property owner before the deceased's passing. In this case, probate isn't necessary. Ownership and the right to sell the home transfer to you upon providing the deceased's death certificate to the courts
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What You Need to Know About the Probate Process?
For property sales, probate application depends on the presence of a Will in England & Wales:
- If there’s a Will, the named executor applies for probate.
- Without a Will, a close family member can apply.
- If a joint owner is already listed on the inherited property, ownership transfers to them. Probate is still required, but the joint owner can manage the property.
In Scotland, the process is similar. Confirmation is necessary for estates involving property, and applicants can include the executor, next of kin, insurance companies, or anyone with a stake in the estate.
In England & Wales, and separately in Scotland, applying for probate can be simplified by consulting a solicitor, especially when dealing with property. Alternatively, individuals can handle probate themselves, but should be aware of the legal intricacies involved.
In England & Wales, probate applications can be made through the Probate Service website, contingent on starting inheritance tax payments to HMRC and valuing the estate beforehand. The Probate Service provides step-by-step guidance, requiring details such as the death certificate, Will (if applicable), and estate information. While the process is lengthy, it is more economical than employing a solicitor.
In Scotland, applicants should approach their local Sheriff’s Court for guidance through the confirmation application process.
In most cases, the probate or confirmation process proceeds smoothly. However, during this time, anyone who believes they have a stronger claim to the property than those named in the Will or the deceased’s next of kin can contest the probate.
In case of a contestation, a judge will review the evidence and determine the rightful owner of the property.
If probate is contested and your inheritance rights are challenged, it’s advisable to seek legal representation from a solicitor. This ensures that your case is presented effectively.
In England & Wales, the probate process typically takes 16 weeks to complete but can extend to several years for complex estates, especially those with multiple probate properties.
Scottish confirmation is generally quicker, often taking just a few weeks depending on court workload, but can also stretch to several years for large estates.
In both jurisdictions, the process is generally lengthy.
How Much Does Probate Cost in the UK?
In England & Wales, the probate application fee is £273 (2024). In Scotland, the confirmation application fee is £200 (2024). Solicitor fees vary based on the estate's value, typically ranging from 1% to 4%
Taxes on Inherited Properties
What is Inheritance Tax for Property?
You only need to pay inheritance tax if the assets exceed £325,000 in value. Contact HMRC to settle any owed inheritance tax.
What Is the Inheritance Tax Rate for Property?
The inheritance tax rate is 40% on anything over £325,000. No inheritance tax is due on inherited property valued below this threshold. Remember, this applies to the total value of all assets received from the deceased. For instance, if you inherit a property worth £125,000 and shares worth £300,000, you would still owe inheritance tax because their combined value exceeds £325,000.
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The Three Types of Inherited Property Taxes
There are three types of tax on inherited property in the UK, and not all of them need to be paid when the property completes probate.
As stated, inheritance tax is the only tax due when inheriting the property. 40% of the property value over £325,000 must be paid to HMRC.
Stamp duty is a tax you must pay when buying a home, either 3% or 4%, depending on the country (with Scotland having the highest rate). Stamp duty is complex, but you do not pay it on your first home purchase; it applies to all subsequent home purchases to help first-time buyers get onto the housing ladder.
This means that if the inherited property is your first home, any subsequent home you buy will have stamp duty attached. However, no stamp duty must be paid when you inherit the house.
In Scotland, the rules differ slightly. In some cases, you may need to pay stamp duty if you do not sell an inherited property within three years of the property going through confirmation. This will be at the current stamp duty rate.
Capital Gains Tax is also complex. In all regions of the UK, it applies to the profit from the sale of a home, but only if the house is not your main residence. If you inherit a property, you must inform HMRC of your primary home. Otherwise, HMRC will determine your main property when you sell.
Think of capital gains tax as a tax on your profits. The tax amount depends on the property’s value difference from inheritance to sale. For example, if the property value increased by 20%, you would pay tax on that 20% gain.
HMRC will inform you precisely how much capital gains tax is due when you sell your property.
How to Avoid Inheritance Tax on Property
Capital Gains Tax is also complex. In all regions of the UK, it applies to the profit from the sale of a home, but only if the house is not your main residence. If you inherit a property, you must inform HMRC of your primary home. Otherwise, HMRC will determine your main property when you sell.
Think of capital gains tax as a tax on your profits. The tax amount depends on the property's value difference from inheritance to sale. For example, if the property value increased by 20%, you would pay tax on that 20% gain.
HMRC will inform you precisely how much capital gains tax is due when you sell your property.
Sell Your Probate Property
In theory, you can start the sale process before probate is granted, but it may not be worth it since it’s impossible to predict when probate will be completed.
Can You Sell Your Inherited Property?
If you haven't been granted probate, you cannot legally sell the house. Until you receive confirmation, the courts have not yet determined if you legally own the property. Only once you receive probate confirmation is the property yours to sell.
An exception to this rule exists if you were listed as a joint owner on the property before the deceased passed away. In that case, you can list the property for sale before probate is granted. However, you may have financial obligations to some beneficiaries of the Will. Consult a solicitor to understand any obligations you may have.
Is Selling the Right Choice for Inherited Property?
For some, keeping an inherited property is important, often due to sentimental value. Many people inherit properties they grew up in or their parents owned and wish to keep them in the family, either by living there or renting it out (note that rental income is taxable).
However, if you're looking to make money, selling the property is a straightforward option once probate is granted. While waiting for ideal market conditions might be beneficial, you can also consider retaining and renting the property out given the current rental prices.
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How it works
Gain peace of mind selling your probate property with We Buy Any Home.
Once probate is granted, you become the legal owner. You can consult with a real estate agent, just as you would for any other property sale. Sell Your Probate Property.
Step 1
Fill in the online form
Call us on +44 7900930000 or fill in your details online through our Valuation Form.
Step 2
Receive offer
After receiving your property details, we'll make an offer within 24 hours.
Step 3
Sale agreed
The sale will be agreed! Sit back, relax, and let us take care of all the work.
How Long Does Selling Inherited Property Take?
If the property has not yet gone through probate (i.e., the legal approval for sale is pending), the process could take anywhere from 16 weeks to several years.
Once probate is complete, selling the property takes a similar amount of time as any other property sale. Depending on buyer interest, it could range from as little as 7 days to several years.
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