Selling an inherited property: the complete guide

You can usually sell an inherited property once probate (or letters of administration) has been granted — you can market it before then, but you can't complete. Depending on the estate's value you may owe Inheritance Tax, and Capital Gains Tax only on any rise in value since the date of death. A cash sale can complete in as little as 7 days, which often helps with the six-month IHT deadline.

Key takeaways

  • You can put an inherited home on the market straight away, but you cannot exchange or complete until probate is granted — typically around 16 weeks.
  • Inheritance Tax (40% above the £325,000 threshold, or up to £500,000 when the home passes to children) is due within 6 months of death — before the sale often completes.
  • Capital Gains Tax is charged only on the increase in value since the date of death, at 18% or 24%, and must be reported within 60 days of completion.
  • Get a defensible RICS "Red Book" probate valuation — set it too low and HMRC can challenge it against Land Registry data.
  • A standard home insurance policy usually won't cover a property left unoccupied for more than 30 days — tell the insurer as soon as you inherit.
  • Selling to a genuine cash buyer completes in 7–28 days with no fees, which suits tax deadlines, empty-home costs and beneficiaries who want a clean, quick split.

Can you sell an inherited property before probate?

You can market it and even accept an offer "subject to probate", but you cannot legally exchange contracts or complete the sale until the grant is issued. The exception is where the property was owned as joint tenants and passes automatically to the surviving owner by right of survivorship — then probate for the property may not be needed. A property owned in a sole name, or as tenants in common, will need probate before it can be sold.

What is probate, and how long does it take?

Probate is the legal right to deal with someone's estate. If there's a will, the named executor applies for a grant of probate; if there's no valid will, an administrator (a close relative under the intestacy rules) applies for letters of administration. Both come from the Probate Registry. In 2024 the average wait was around 16 weeks, and straightforward estates can still take more than four months.

An executor also has the so-called "executor's year" — they can't be forced to distribute the estate for 12 months from the date of death, which gives room to sell sensibly. You generally won't need probate for a very small estate (under about £5,000 with no property). The current probate application fee is £300 (free for estates under £5,000).

Do you pay Inheritance Tax when you sell an inherited property?

Inheritance Tax (IHT) is charged on the estate, not on you as the seller, and only where the estate is above the threshold. The nil-rate band is £325,000, with an extra £175,000 "residence nil-rate band" when the home passes to children or grandchildren — so up to £500,000 for an individual, and up to £1 million for a couple pooling their allowances. Anything above is taxed at 40% (or 36% if at least 10% of the estate goes to charity).

The IHT timing trap. IHT is due within 6 months of death — often before the house has sold, creating a cash-flow squeeze for executors. You can pay the tax on a property in annual instalments, or use a bridging loan, but a fast sale is frequently the simplest way to release the funds in time. The estate's IHT is reported to HMRC on form IHT400.

Do you pay Capital Gains Tax on an inherited property?

There's no Capital Gains Tax (CGT) on inheriting a property, and importantly there's a "CGT uplift on death": your base cost is the probate value — the open-market value at the date of death — not what the deceased originally paid. You only pay CGT on any increase between that probate value and the eventual sale price.

The sum is simply sale price − probate value − allowable costs. Residential CGT rates are 18% (within the basic-rate band) and 24% (higher rate), with a £3,000 annual exempt amount per person. Any CGT must be reported and paid within 60 days of completion through HMRC's UK Property reporting service.

How is an inherited property valued for probate?

The probate value is the property's open-market value on the date of death, and it matters twice over: it sets the IHT position and becomes the base cost for CGT. You can use estate-agent valuations, but a RICS "Red Book" valuation (or a Level 2 Homebuyer report) is far more defensible. Set the figure too low to save IHT and you risk a bigger CGT bill later — and HMRC can open a compliance check, comparing your figure against Land Registry sold prices.

What about insurance, council tax and clearing the house?

An empty inherited home carries running costs that fall on the estate, so deal with them early:

What if you inherit a property with siblings and can't agree?

Shared inheritances are where disputes arise. If one beneficiary wants to sell and another doesn't, the usual routes are: one buys out the others' shares; you rent the property (and the reluctant sibling takes the rental income or lives there); or, as a last resort, a beneficiary applies to court for an order for sale. Keep every decision in writing, and remember an executor has a legal duty to achieve open-market value and can be held personally liable if they sell too cheaply.

Watch your benefits. If your share of the sale proceeds takes your savings above £16,000, it can affect means-tested benefits such as Universal Credit. Factor this in before you complete.

How should you sell an inherited property: estate agent, auction or cash?

The right route depends on whether price, speed or certainty matters most — and on the tax and holding-cost clock ticking in the background.

Route Typical timescale Price Certainty Fees
Estate agent 3–9 months Full market value Lower — chains, fall-throughs 1–3% + VAT + legal
Auction ~6–8 weeks Market-driven, can be below Higher once the hammer falls 2–3% + fees
Cash buyer (Springbok) 7–28 days ~80% of market value Very high — chain-free £0 — we cover legal costs

A fast cash sale suits probate for practical reasons: it releases funds in time for the six-month IHT deadline, stops the empty-home running costs, avoids months of viewings during a difficult time, and gives beneficiaries a clean, certain split. If you have time and equity and want the highest figure, the open market may net more; if certainty and speed matter most, a cash sale or our Fixed Price™ route (up to 95% of market value, still fee-free) is often the better fit.

Selling an inherited property: key terms

Probate
The legal right to deal with a deceased person's estate, including selling their property.
Grant of probate vs letters of administration
A grant of probate is issued to an executor named in a will; letters of administration are issued to an administrator when there's no valid will.
Executor vs administrator
An executor is named in the will; an administrator is the close relative who deals with an estate under the intestacy rules.
Intestacy
Where someone dies without a valid will; the law sets who inherits and in what order.
Probate value
The open-market value of the property at the date of death — the base cost for both IHT and Capital Gains Tax.
Inheritance Tax (IHT)
Tax on an estate above the threshold, at 40%, due within six months of death and reported on form IHT400.
Capital Gains Tax (CGT)
Tax on the rise in value between the probate value and the sale price, reported within 60 days of completion.
Deed of appropriation
A document assigning shares of a property to beneficiaries before sale, so each can use their own CGT allowance.
Executor's year
The 12 months from the date of death during which an executor can't be compelled to distribute the estate.