How to sell an inherited house in the UK: A guide by Dan Green

  • By Dan Green, Home Selling Expert Founder
  • 4 minutes read

Table of Contents

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I'm a property expert that still remembers the days when having broadband was a selling point! My articles cover issues that homesellers face in the UK and answer the questions we're all asking. I've bought and sold properties and helped others do the same, so my writing comes from years of experience.

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Contents 

 

  • Navigating the process of selling an inherited house
  • Understanding probate and inheritance tax
  • Is selling the right choice? Assessing your options
  • Preparing your inherited property for sale
  • Choosing how to sell: Estate agents, auctions, or quick cash buyers?
  • Legal considerations: The essentials you need to know
  • What to expect during the sales process
  • Conclusion – wrapping up the sale and moving forward
  • FAQs
  • Further reading: Useful resources for selling an inherited property in the UK

 

Navigating the process of selling an inherited house

 

Okay, so, you’ve inherited a house.

Well firstly, my condolences on your loss. Sorting through an inherited property can be an emotional rollercoaster. You’re dealing with memories, paperwork, and working out what to do next, all while trying to maintain some sense of normality. It’s no small feat. But while selling an inherited house can feel like stepping into a maze of legal and financial jargon, it doesn’t have to be overwhelming. Not when you’ve got a plan.

 

And that’s why I’m here with this article. In this guide, I’ll take you through everything you need to know about selling an inherited property, from navigating probate to deciding how and when to sell.

Let’s start with the big question most people ask…

‘How do I even begin?’

 

The first step to selling an inherited house is understanding probate. Sorting out probate can initially seem like trying to untangle fairy lights at Christmas. But trust me, it’s not as bad as it looks.

 

In a nutshell, probate is the legal process of proving a Will (if there is one) and transferring ownership of the property to you, the new owner. Until probate is granted, you’re not legally allowed to sell the house. That’s why it’s got to be a top priority.

 

In the next section, we’ll dive into the nitty-gritty of probate and inheritance tax. 

 

Understanding probate and inheritance tax

 

You can think of probate as the legal green light that says, ‘Yep, you’re good to go ahead and manage or sell the inherited property.’ Until you have it, the house technically isn’t yours to sell.

What is probate?

 

Probate is the legal process of validating a Will (if one exists) and administering the estate of someone who has passed away. It ensures that all debts, taxes, and obligations are settled before the property is passed on to you or any other beneficiaries. 

 

Now, if there’s no Will (which actually happens a lot more often than you’d think), this is called dying intestate. In this case, the rules of intestacy will dictate who inherits what. Either way, probate needs to be granted before you can sell the inherited house.

 

Key steps to start probate:

 

  1. Get a probate application: You’ll need to apply to the Probate Registry. If there’s a Will, this is usually done by the executor. If there’s no Will, you (as the next of kin) can apply for something called ‘Letters of Administration,’ which gives you the same legal rights to manage the estate.

  2. Gather documents: You’ll need the death certificate, the Will (if there is one) or Letters of Administration, and details of the estate’s assets, including the value of the house. Don’t worry if you don’t have all the details yet; you can gather these as part of the process.

  3. Submit the application: Fill in the probate application form (PA1P for a Will, or PA1A if no Will available at: https://www.gov.uk/government/publications/form-pa1p-apply-for-probate-the-deceased-had-a-will and https://www.gov.uk/government/publications/apply-for-probate-by-post-if-there-is-not-a-will) and submit it, along with the inheritance tax form (https://www.gov.uk/government/collections/inheritance-tax-forms).

You can do this online, but if paperwork isn’t your thing, many people opt to get a solicitor’s help.

What about inheritance tax (IHT)?

 

Ah yes, inheritance tax. It’s the taxman’s way of reminding you that nothing in life (or death) is free. If the estate’s value exceeds £325,000 (the current tax-free threshold in the UK), you might have to pay up to 40% in inheritance tax on anything above that.

Inheritance tax threshold (2024 figures):

  • Tax-free amount: £325,000
  • Tax on estates above this threshold: 40%

For example, imagine you inherit a house worth £500,000. After deducting the £325,000 threshold, you’re left with £175,000 subject to inheritance tax. At 40%, you’d owe around £70,000 to the taxman.

How to pay inheritance tax

 

Luckily, HMRC gives you some options for how and when you pay. You can either pay it in full or opt to spread the payments over time. If the estate includes property (like the house you’ve inherited), you can pay inheritance tax in 10 yearly instalments, but keep in mind that interest will be added. It’s worth considering whether you might want to sell the house quickly to cover these costs.

You’ll need to complete form IHT400 (available from HMRC) and send it along with the probate application. HMRC will give you a payment reference number, and you can then pay either through a bank transfer, cheque, or online.

By the way, even if you haven’t completed probate or sold the property, HMRC expects the first inheritance tax payment within six months of the person’s passing. So, don’t delay – keep that deadline in mind.

Summary of probate and inheritance tax

 

Step Action Timeframe
Apply for probate Submit PA1P / PA1A form, Will, and death certificate Within a few months
Inheritance tax Pay tax if the estate exceeds £325,000 Within 6 months
Probate decision Wait for probate to be granted 8-12 weeks (typically)
Selling the property Once probate is granted, you can sell the house Varies (can list immediately)


As with everything involving HMRC, paperwork is key, and deadlines aren’t flexible. Keep everything documented, and if you’re in doubt, it’s always worth consulting a professional to ensure you don’t miss anything.

Now that we’ve covered the legal basics, you’re ready for the next step; deciding whether selling is the right option for you.

 

Is selling the right choice? Assessing your options

 

Once you’ve wrapped your head around probate and inheritance tax, the next big question usually looms: ‘Should I sell this inherited property, or keep it?’

It’s a bit of a fork in the road, and both paths have their pros and cons. Let’s break them down to help you decide what’s best for your situation. After all, not all inherited houses are equal and what works for one person may not suit another.

  1. Keeping the property: Is it worth it?

Keeping an inherited house can seem appealing. Maybe it’s your childhood home, full of memories, or perhaps it’s a property in a great location. But owning a second property isn’t as simple as plonking the keys down on your mantelpiece and calling it a day. You’ll have to consider the costs involved in maintaining it, potential rental income, or if you plan to move in, the emotional impact.

Advantages of keeping the property:

  • Rental income: If you’re not planning on moving in, renting the house out can provide a steady monthly income, so it’s an option worth exploring.

  • Capital growth: Property prices tend to rise over time (although, admittedly, they can also fall). If the house is in a good area, you might be sitting on a potential goldmine.

  • Sentimental value: This one’s tough to quantify, but if the house holds special memories, keeping it can be a way to preserve a part of your family history.

Disadvantages of keeping the property:

  • Maintenance and costs: Owning a property means paying for upkeep, repairs, and ongoing bills like council tax, utilities, and insurance.

  • Emotional strain: For some, living in or managing a property with strong emotional ties can be difficult. You may feel pressure to make it perfect or struggle with the constant reminder of your loss.

  • Second-home tax: If you already own a home, you could be hit with higher taxes, including capital gains tax and the 3% surcharge on stamp duty for second properties.

  1. Selling the property: a practical choice?

On the other hand, selling the property might be the cleaner, less complicated option. In many cases, this is the route most people take; whether for financial reasons or simply to avoid the hassle of managing an extra property. Plus, with the current state of the UK housing market, there’s always a demand for homes, especially in key locations.

Advantages of selling the property:

  • Immediate financial benefit: Selling the house provides a lump sum of cash, which could be especially helpful if you’ve got inheritance tax to pay, debts to settle, or other financial goals.

  • No upkeep headaches: Once the property is sold, you won’t have to worry about maintenance, repairs, or finding tenants. It’s a weight off your shoulders, and you can use the proceeds to invest in other ventures or pay off personal debt.

  • Quick closure: Emotionally, selling the house can provide closure and help you move forward, rather than lingering over decisions about what to do with it.

Disadvantages of selling the property:

  • Loss of potential growth: If the property is located in an area where house prices are on the rise, selling now could mean missing out on long-term gains.

  • Sentimental loss: Let’s face it, selling an inherited home can be emotional. The family memories tied to the house can make parting with it difficult, especially if it’s been passed down through generations.

Key points to consider when deciding whether to sell or keep

 

Option Advantages Disadvantages
Keep the property Rental income, potential capital growth, sentimental value Ongoing costs, maintenance, emotional strain, taxes
Sell the property Immediate cash, no upkeep, emotional closure Loss of potential growth, emotional attachment
  1. Renting the property: A middle ground?

If you’re not ready to sell, renting it out could be a great compromise. With the UK’s rental market still going strong, you could generate solid rental income while holding onto the asset.

Advantages of renting:

  • Steady income stream: With rental yields averaging between 4-5%, renting out your inherited property could provide you with a decent monthly income.

  • Retaining ownership: By renting, you can still benefit from any future property price increases while avoiding the emotional difficulty of selling immediately.

Disadvantages of renting:

  • Being a landlord: Managing a rental property comes with its own headaches. Tenants, repairs, and compliance with landlord regulations can quickly become a full-time job.

  • Tax obligations: Income from rent will be taxed as part of your overall income, and don’t forget about the costs of maintaining the property in a rentable condition.

  1. Combining the emotional with the practical

There’s no ‘one-size-fits-all’ answer here, and emotions play a significant role in the decision. If the property holds sentimental value, it might not be easy to let go. But be honest with yourself: can you handle the financial and emotional toll of keeping it? On the other side of the coin, if you’re leaning towards selling, remember that it doesn’t have to be a rushed decision. Take your time, assess your options, and speak to a financial adviser if needed.

A quick checklist to help you decide:

  • Do you need the money from a sale to pay inheritance tax or other debts?
  • Can you afford to keep the property and cover ongoing costs?
  • Would renting the property out provide enough income to make it worthwhile?
  • How emotionally attached are you to the property?

If you’re still on the fence, it might help to chat with a trusted friend or family member who isn’t so emotionally attached to the property. Sometimes, a fresh perspective is all you need to make the right decision.

Actually, on that topic, if you’ve inherited a house from your parents, you might be interested in reading this other shorter article that I created: https://springbokproperties.co.uk/blog/what-happens-when-you-inherit-a-house-from-parents

 

Okay, so with the decision to sell the property or keep it now being made, it’s time to start preparing the property for sale (if that’s the route you’ve chosen). And in the next section, I’ll guide you through exactly how to get your inherited house market-ready.

 

Preparing your inherited property for sale

 

Once you’ve made the decision to sell, the next big task is getting your inherited property ready to sell. It might feel overwhelming, especially if it’s been a while since anyone lived in the house, but don’t worry, I’ve got you covered. We’ll break this down into manageable steps to make sure the property appeals to the right buyers and fetches the best price possible. Now, you won’t have to do any of this if you’re selling to a fast cash buyer (as I cover in the next section), but I’ve included it in case you’re going to be selling with an estate agent).

Step 1: Decluttering and deep cleaning

 

First things first, you need to declutter. No buyer is going to see the potential of the property if it’s filled with decades of old magazines, furniture that’s seen better days, or quirky family mementos. The goal is to make the space feel open, clean, and neutral, allowing buyers to imagine themselves living there.

Here’s a tip: ‘If in doubt, chuck it out!’ Well, let’s clarify that. Maybe don’t chuck everything out, but do consider donating to charity or selling items that won’t be needed. For personal items, it’s best to store them away because buyers are here to see the house, not your life story.

After decluttering, deep cleaning is an absolute must. We’re talking about the kind of clean where everything sparkles; from the windows to the skirting boards. A fresh, clean space will make the house feel much more inviting and cared for. And let’s be honest, no one is going to pay top money for a property that smells like last night’s takeaway and has cobwebs in the corners.

If the house needs some serious elbow grease, consider hiring professional cleaners. The cost is well worth the time and effort it saves, especially when first impressions can make or break a sale.

Step 2: Minor repairs and freshening up

 

Now, let’s talk repairs. You don’t need to go full ‘DIY SOS’ on the place and call in Nick Knowles, but fixing small, obvious issues can make a huge difference. Things like leaky taps, cracked tiles, broken handles, or peeling wallpaper can easily turn buyers off and make them question how well the house has been maintained.

If the paint is looking tired or the wallpaper is a bit, let’s say, ‘vintage’, consider a light refresh. A neutral colour palette –soft greys or warm whites – can brighten up rooms and make them feel larger. It’s a cost-effective way to give the property a new lease of life without splashing out on a complete renovation.

Step 3: Should you go further? Renovation versus ‘as-is’

 

This is where things get interesting. Many people wonder whether they should spend more on larger renovations before selling, but here’s the thing; the extent to which you renovate should depend on the property’s condition, your budget, and the market you’re selling into.

For example, if you’re selling to property investors or at auction, leaving the house as-is might actually work in your favour. Investors often look for homes they can add value to themselves. If you try to fix everything, you may end up spending more than you’ll make back in the sale.

Pros of selling ‘as-is’:

  • Saves you time and money on repairs
  • Appeals to investors looking for a project
  • Allows for a quicker sale, particularly if the market is competitive

Cons of selling ‘as-is’:

  • Might reduce the pool of potential buyers
  • Could lead to a lower sale price if major issues are present

If the house is in a more modern or desirable area, and you’re hoping to sell to a family or first-time buyer, small renovations could help maximise your return. Just keep in mind that every pound you spend should ideally result in about two pounds back on the sale price. Be strategic though, because buyers appreciate well-maintained homes, but not every property needs to look like it’s straight out of an interior design magazine.

Step 4: Staging the property

 

Once the property is clean and any minor repairs are done, it’s time to think about staging. Now, staging is all about making the house feel like a cosy home for potential buyers. This doesn’t mean filling it with expensive designer furniture, but creating spaces that are warm, welcoming, and functional.

Consider the following:

  • Furnish key rooms: If the house is empty, it’s worth adding basic furniture to show the size and potential of each room. A well-placed dining table or sofa can help buyers visualise how they would live in the space. And prospective buyers might look at the spare room and think that a bed wouldn’t fit. Put a bed in the room to show that it does!

  • Add a few homely touches: Think fresh flowers, a neatly folded fluffy towel in the bathroom, or a bowl of fruit on the kitchen counter. These little things can make a big difference in making your property feel inviting.

Don’t go overboard with personal décor though. Remember that buyers need to picture themselves in the house, and not be distracted by an array of colourful scatter cushions!

Step 5: Boosting kerb appeal

 

Right, you’ve probably heard this before, but first impressions matter. If the front of the house looks neglected, buyers will immediately form negative impressions, even if the inside is stunning. Now, this doesn’t mean a full Alan Titchmarsh level garden overhaul, but a few simple touches can make a massive difference to tidying up the appearance:

  • Mow the lawn and trim hedges
  • Clean the driveway and paths, and pull-up weeds
  • Add potted plants or flowers by the entrance

If the front door or garage door is looking a bit tired, a fresh coat of paint can work wonders. And make sure you clean the windows. Sparkling windows give the impression of a well-maintained home. Dirty windows do not.

With these steps, you can transform an inherited property from a family home to a buyer’s dream. Properly preparing the property gives it the best chance of selling quickly and at a competitive price. Remember, first impressions last, so make them count.

 

In the next section, we’ll look at the options available for actually selling the house. Naturally, each method has its pros and cons, so I’ll help you navigate through them so that you can make the best decision for your situation.

 

Choosing how to sell: Estate agents, auctions, or quick cash buyers?

 

Once your inherited property is spruced up and ready, the next big decision is how to sell it. It’s easy to assume the traditional route – an estate agent – would be the way to go, but it’s worth considering all your options. Each method has its pros and cons depending on your timeline, goals, and the condition of the property.

  1. Selling via estate agents: The traditional route

High street estate agents are the classic choice when selling a house. They’ll often take care of everything from marketing to negotiating and conducting viewings. If you’re aiming to get the best price possible, and time isn’t an issue, this might be the best path for you.

Advantages of using an estate agent:

  • Maximising sale price: A good estate agent knows how to market your property and get it in front of the right buyers. Their local expertise can help you achieve the highest possible price.

  • Support with paperwork: They’ll guide you through the legalities and paperwork, so you don’t feel lost in the process.

Disadvantages of using an estate agent:

  • Time-consuming: Selling through an estate agent can take months. On average, it can take between 14-23 weeks to complete the process, and even longer if you’re dealing with a slow chain.

  • No guarantee of a sale: There’s no certainty you’ll sell the property, especially if the market is slow or you’re in an area with less demand.

  • Fees: Estate agent fees typically range between 0.75% to 3% of the sale price, plus VAT. These can eat into your profit.

Typical estate agent timeline and costs

 


Step
Timeframe Potential Cost
Listing and marketing 1-4 weeks Agent’s fees (0.75% to 3% + VAT)
Viewings and negotiations 4-8 weeks Legal fees ( around £1,000)
Completion (sale finalised) 14-23 weeks (on average)
  1. Selling via auction: Fast, but uncertain

Selling at auction is growing in popularity, especially for inherited homes that might need a bit of work. It’s faster than the traditional route, and you can usually expect completion within a month of the auction. This method is particularly appealing if the house requires significant repairs or has features that appeal to investors.

Advantages of selling at auction:

  • Fast sale: Auctions typically have a set completion date of 28 days after the auction, which is a lot quicker than the traditional route.

  • Certainty of sale: Once the hammer falls, the buyer is legally committed to purchasing the property, so you won’t have to worry about them backing out.

  • Selling ‘as-is’: Auctions are ideal for properties that need renovation or appeal to developers looking for a project, so there’s no need to spend money on upgrades.

Disadvantages of selling at auction:

  • Unpredictable sale price: Auctions are a bit of a gamble. You won’t know the final sale price until the day of the auction, and it might not be as high as you’d hoped.

  • Auction fees: You’ll need to factor in auction house fees and legal fees, which can add up. Expect to pay around 2% to 3% of the sale price in auction fees.

  • Limited audience: Auction buyers are often investors looking for a bargain. If your property is more suited to a family or first-time buyer, this might not be the best option.

Setting a realistic reserve price at auction is crucial. This is the minimum amount you’re willing to accept, and if bids don’t reach that level, the property won’t sell.

  1. Selling to a quick cash buyer: Speed and certainty

If you’re looking for speed and certainty, selling to a cash house buying company, such as Springbok Properties, could be the best option. This is particularly useful if you need to release funds quickly, perhaps to cover inheritance tax or other debts. These companies will make an offer, usually within 24-48 hours, and you can complete in as little as two weeks.

Advantages of selling to a quick cash buyer:

  • Fast completion: You could have the sale wrapped up in as little as 7 to 21 days; ideal if time is of the essence.

  • No fees: Most reputable cash buyers cover legal fees, and you won’t have to pay estate agent or auction fees. What they offer is what you get.

  • Certainty: A cash buyer can make a formal offer quickly, with no risk of chains breaking down or buyers pulling out at the last minute.

  • Sell ‘as is’: Because cash buyers will buy any property in any condition, you won’t have to spend time and money on repairs and staging.

Disadvantages of selling to a quick cash buyer:

  • Lower sale price: Cash buyers typically offer around 80-85% of the market value. While you’re trading speed for convenience, you won’t get the highest price for your property. But you are getting a guaranteed fast sale.

  • Reputation matters: Not all cash buyers are reputable. It’s important to research and choose a company with a solid track record. Avoid buyers that ask for fees upfront or don’t have online reviews.

Pros and cons of selling through estate agents, auctions, and cash buyers

Method Time to sell Sale price potential Fees
Estate Agent 14-23 weeks (avg) Highest price potential 0.75% to 3% + VAT (agent fees)
Auction 4-6 weeks (from listing to completion) Variable, depends on auction day Around 2-3% auction fees
Cash Buyer 2-4 weeks Usually 80-85% of market value No fees


Which option is right for you?

 

When deciding how to sell your inherited house, it all boils down to your priorities. Are you looking for a quick sale to avoid ongoing costs or settle inheritance tax? Or would you prefer to hold out for the highest price possible, even if it takes a lot longer?

  • If time is your priority, and you’re okay with receiving less than the market value, then selling to a quick cash buyer could be the best route.

  • If you want the highest price and don’t mind waiting a few months, selling through an estate agent could give you the best return.

  • If you need a quick and guaranteed sale, but are comfortable with some uncertainty on price, and you can afford the fees, then selling at auction is a middle-ground option.

Take time to weigh-up the pros and cons of each option and make sure to consider your own financial and emotional situation.

 

Legal considerations: The essentials you need to know

 

Time to think about the legal side of things. While it might seem like endless paperwork, understanding the legal process and knowing what’s required can make things much smoother. Let’s break down the essentials about conveyancing, inheritance tax, and other legalities.

  1. Understanding conveyancing

Conveyancing is the legal transfer of property ownership from one person to another. This means transferring the inherited property from the estate to the buyer. Whether you’re using a solicitor or a licensed conveyancer, they’ll handle all the legal aspects of the sale and ensure everything is done by the book.

Here’s how the conveyancing process typically works…

  1. Instruct a conveyancer: You’ll need to choose a conveyancer or solicitor to handle the sale. Make sure you go with someone experienced in property law and well-versed in handling inherited properties. (If you sell with Springbok Properties, we have a panel of approved solicitors that are dealing with conveyancing every day).

  2. Drafting contracts: Your conveyancer will prepare the draft contract for the sale and send it to the buyer’s solicitor. They’ll also gather essential documents like the title deeds and details about the property.

  3. Property searches: The buyer’s solicitor will carry out various searches, including local authority searches to check for planning issues, flood risks, or boundary disputes.

  4. Negotiating the details: If any issues come up during the searches, you may need to negotiate the sale price or other terms. Your conveyancer will guide you through this process.

  5. Exchange of contracts: When all parties are happy with the terms, contracts are exchanged, and the sale becomes legally binding. At this point, both you and the buyer are committed to the sale.

  6. Completion: This is the final stage, where the property ownership is transferred to the buyer, and you receive the sale proceeds.

When selling an inherited property, it’s important to make sure that probate has been granted before you begin the conveyancing process. Without probate, you won’t be legally able to sell the house.

  1. Dealing with inheritance tax and capital gains tax

As we discussed earlier, if the value of the estate (including the inherited property) exceeds £325,000, you’ll be liable for inheritance tax. However, when you sell the property, you may also need to think about capital gains tax (CGT).

CGT is a tax on the profit (or ‘gain’) you make when selling an asset that has increased in value. For an inherited property, CGT is calculated based on the difference between the property’s value at the time of inheritance (the probate value) and the sale price.

For example, let’s say the house was valued at £300,000 at the time of inheritance, but you sell it for £350,000 a year later. You’ll be taxed on the £50,000 gain. However, there are tax-free allowances that can reduce your CGT liability.

How to minimise your CGT:

 

  • Deductible costs: You can reduce your CGT by deducting certain costs, such as the estate agent fees, legal fees, and any money spent on improving the property (not general maintenance).

  • Tax reliefs: Depending on your personal circumstances, you may be eligible for tax reliefs, such as the private residence relief if the property was your main home for part of the ownership period.

It’s wise to speak to a tax adviser or accountant to fully understand your tax obligations and ensure you’re not paying more than you need to.

  1. Title deeds and property ownership

When you sell an inherited property, one of the first things your conveyancer will do is verify the title deeds. This proves your legal ownership of the property. If the property was mortgaged, it’s likely that the title deeds are held by the lender, but if not, they should be among the estate documents.

Key points to check in the title deeds:

  • Ownership status: Ensure that the title deeds accurately reflect your ownership. If the property was held in joint ownership (e.g., with siblings), all owners must agree to the sale.

  • Covenants or restrictions: Some properties have covenants that restrict what can be done with the land or property. Make sure you’re aware of any restrictions that could impact the sale.

  • Boundary disputes: Ensure that the boundaries of the property are clearly defined and that there are no ongoing disputes with neighbours over property lines.

  1. Settling debts and liabilities

Before completing the sale, any debts owed by the estate (including any mortgages on the property) need to be settled. If the house is still mortgaged, the proceeds of the sale will be used to pay off the remaining balance.

Other costs that may need to be settled before the sale include:

  • Utility bills: Make sure that any outstanding utility bills (gas, electricity, water, internet) are paid up until the date of completion.

  • Council tax: You’ll also need to pay any council tax owed on the property. If the property has been empty for a long period, check if you’re eligible for any council tax reductions or exemptions.

  • Maintenance fees: If the property is part of a leasehold, check that any outstanding ground rent or service charges are paid.

It helps to keep a record of all payments and settlements, as you may need them for tax purposes or if any disputes arise during the sale process. Take screenshots and photos and save them for potential future use.

  1. Additional legal considerations for selling at auction or to cash buyers

If you’ve decided to sell the property at auction or to a fast sale cash buyer, the legal process remains similar, but there are a few additional things to keep in mind:

  • Auction sales: Once the hammer falls at auction, the sale is legally binding. The buyer is required to complete the purchase within 28 days, so it’s important to have all the necessary legal documents ready before the auction.

  • Cash buyers: Selling to a cash buyer typically speeds up the process, but you should still ensure all legal checks (including proof of funds) are completed. Beware of any cash buyers who try to skip essential legal steps or push for a very fast completion without documentation because it’s likely to be unlawful. 

 

Selling an inherited house involves a fair bit of paperwork, but by understanding the legal process and working with a reliable conveyancer, you can ensure everything goes smoothly. In the next section, we’ll cover what to expect during the sales process and how to manage everything from viewings to negotiations with potential buyers.

 

What to expect during the sales process

 

This section is geared towards selling on the open market with an estate agent, so if you’re selling with a cash buyer like Springbok Properties, feel free to skip straight to the conclusion below.

Okay, so your inherited property is on the market, and the next stage is getting through the sales process. While you might feel like the hard work is done, there’s still plenty to manage, from viewings and negotiations to finalising the sale. This part of the journey can take time, so it’s important to know what to expect, stay patient, and be prepared to handle any hiccups that may arise.

  1. Handling viewings: Making the right impression

Viewings are the first real opportunity for buyers to experience the property, and making a good impression is essential. Here’s what you should know to ensure the process goes smoothly:

  • Be flexible with timings: Buyers often need to fit viewings around work or family commitments, so it helps to be as flexible as possible. Evening and weekend slots are generally the most convenient for buyers.

  • Prepare the house for each viewing: Each viewing should feel like the first. Make sure the house is tidy, clutter-free, and welcoming. Pay attention to details such as lighting and air circulation (open windows on a warm day or light some candles in the winter months).

  • Accompanied viewings: If you’re selling through an estate agent, they’ll usually accompany the buyers, taking the pressure off you. But if you’re showing off the house yourself, remember to strike a balance between being informative and giving buyers space to explore. Too much hovering can feel intrusive, while being too distant might leave them with unanswered questions.

  1. Receiving offers: What you need to know

Once viewings start, you may soon begin receiving offers. It’s exciting, but remember that this is just the start of the negotiation process. Here’s what to expect:

  • Types of offers: You’ll receive offers from different types of buyers. Some might be one man band cash buyers looking for a quick deal, while others could be in a property chain (meaning they need to sell their own home before they can complete the purchase). The offer price is important, but so is the buyer’s position. A slightly lower cash offer with no chain could be better than a higher offer that’s dependent on the buyer selling their own property. But make sure that the cash buyer actually has the cash and is ready to proceed.

  • Negotiations: Don’t be afraid to negotiate. Most buyers expect a bit of back-and-forth, and this is your chance to push for the best possible price. Your estate agent will usually handle these discussions, but try to stay calm and rational during negotiations. Focus on your bottom line but be realistic about the market.

  • Accepting an offer: When you accept an offer, the buyer will typically pay a deposit, and the sale moves into the conveyancing phase. Just remember that until contracts are exchanged, the sale isn’t legally binding. Buyers can still pull out, which is why it’s important to keep momentum going throughout the process.

  1. Navigating the conveyancing process

We’ve already covered the basics of conveyancing, but here’s what happens during this stage of the sale process:

  • Drafting contracts: Your solicitor will draw up a draft contract, setting out the terms of the sale, including the agreed sale price and any conditions (like completion date, and the fixtures and fittings that are to be included).

  • Searches and surveys: The buyer’s solicitor will carry out property searches (such as checking for planning restrictions or environmental risks like flooding), and the buyer might also commission a survey to assess the condition of the property.

  • Negotiating the finer details: Sometimes issues arise during searches or surveys, such as damp or structural issues. Buyers may try to renegotiate the price or ask for repairs to be done before completing the sale. Your solicitor will help you navigate these discussions and protect your interests.

  • Exchange of contracts: Once all parties are happy and the paperwork is in place, contracts are exchanged and the sale becomes legally binding. Both you and the buyer are committed to completing the sale, and you’ll likely receive the buyer’s deposit at this point.

  1. Completing the sale

Completion is the final stage of the sale process, and this is when ownership of the property officially transfers to the buyer. Here’s what to expect:

  • Final checks: On completion day, your solicitor will check that the full sale price has been transferred to your account. They’ll also ensure that any outstanding mortgage on the property is paid off.

  • Handing over the keys: Once the funds are in your account, the property is no longer yours, and you’ll need to hand over the keys to the buyer. Your estate agent typically manages this part of the process.

  • Settling fees and taxes: After the sale is complete, you’ll need to settle any remaining costs, including solicitor’s fees, estate agent fees, and (if applicable) capital gains tax. Be sure to keep records of all these payments for future reference.

To avoid any last-minute surprises, check throughout the process that your solicitor has kept you updated on all outstanding payments.

  1. Dealing with potential hiccups: delays, chain breakdowns, and buyer dropouts

Unfortunately, property sales aren’t always smooth sailing. Here are some common issues and how to handle them:

  • Delays: Sales can sometimes be delayed due to slow conveyancing, issues uncovered in searches or surveys, or even the buyer’s mortgage application taking longer than expected. Try to stay patient and keep communication open between all parties.

  • Chain breakdowns: If your buyer is in a chain, the sale could be affected by issues further down the line, such as the buyer’s buyer dropping out. In these cases, you may need to decide whether to wait for the chain to resolve, or consider other offers, or go with a cash buying company to get a guaranteed sale.

  • Buyer dropouts: Although less common after the exchange of contracts, buyers can still pull out of the sale before contracts are exchanged. It’s frustrating, but if it happens, try to move forward quickly by re-listing the property, exploring other offers, and keeping a positive outlook.

 

With a bit of patience and preparation, you’ll successfully navigate the sales process and close the deal. Selling an inherited property can be emotional, but knowing what to expect every step of the way will help you to stay calm and focused.

Conclusion – wrapping up the sale and moving forward

 

You’ve successfully got through the complex journey of selling your inherited property. It’s no small feat, especially given the emotional and financial factors that often come into play when dealing with such a significant life event. Now that the sale is complete, there are a few final things to consider before you move on.

  1. Paying off remaining costs and taxes

Once the sale has gone through and you’ve received the proceeds, your first step should be settling any outstanding costs and tax liabilities:

  • Solicitor and agent fees: Your solicitor will handle most of this for you, ensuring any legal fees, estate agent commissions, or auction fees are paid. Make sure you’ve budgeted for these costs as they’ll come directly out of your proceeds.

  • Capital gains tax (CGT): If the property has appreciated in value since you inherited it, you may owe CGT. As mentioned in previous sections, you’ll be taxed on the ‘gain’ from the probate value to the sale price, minus any applicable deductions. Speak with an accountant or tax adviser to make sure you’re compliant with HMRC regulations and take advantage of any tax reliefs or allowances.

  1. Moving on emotionally

The sale of an inherited property can be an emotional process. Whether the house was full of family memories or simply felt like a weight on your shoulders, it’s important to take a moment to reflect. Selling a property that’s been in your family can bring a mix of relief, sadness, or even uncertainty about the future.

Consider these tips for moving forward:

  • Take time to reflect: It’s okay to feel a little bittersweet about the sale. Remember that selling the house doesn’t erase the memories tied to it.

  • Celebrate your achievement: You’ve just completed a major task that’s often full of stress and challenges. It’s important to acknowledge the hard work you’ve put in to see it through.

  1. Lessons for future property sales

Now that you’ve gone through the process of selling an inherited property, you’re equipped with the knowledge and experience that will serve you well in the future; whether it’s selling your own home, another inherited property, or even buying a new place (now that you understand the selling procedure).

Key takeaways:

  • Preparation is everything: From understanding probate to marketing the property, careful preparation will make the process smoother.

  • Legalities matter: Don’t skimp on professional help when it comes to conveyancing, inheritance tax, or capital gains tax. A good solicitor and financial adviser can save you time, money, and stress.

  • Know your options: Whether it’s choosing between an estate agent, auction house, or cash buyer, make sure you’ve weighed-up all your selling options to get the best outcome for your situation.

Final thoughts

 

Selling an inherited house can be one of life’s most complicated tasks, bringing emotional and financial challenges. But with the right approach, guidance, and a bit of patience, it can also be a rewarding experience that allows you to close one chapter and move forward with new opportunities.

Thank you for taking the time to read this guide. I hope you feel more confident and prepared for the road ahead, whether you’re selling now, or preparing for the future.

 

FAQs

 

Selling an inherited house can raise a lot of questions, especially for those navigating the process for the first time. Here are some of the most common questions asked by homeowners who find themselves in this situation, along with clear, straightforward answers.

 

  1. Do I need probate to sell an inherited house?

Yes, you need to go through the probate process before you can sell an inherited property if the house was solely owned by the deceased. Probate is the legal process that confirms you have the right to sell the property. However, if the property was jointly owned with a surviving spouse, probate may not be necessary.

 

  1. How long does it take to sell an inherited house?

The time it takes to sell an inherited house depends on various factors, including the method of sale (estate agent, auction, or cash buyer) and the local property market. Typically, selling through an estate agent can take 14-23 weeks, whereas selling at auction or to a quick cash buyer may complete within 2-6 weeks. Remember, probate must be granted before the sale can proceed, which can add another 8-12 weeks to the timeline.

 

  1. Do I have to pay inheritance tax on the house?

At the time of writing, inheritance tax is only due if the total value of the estate (including the house) exceeds £325,000. If the estate is valued above this threshold, you’ll owe 40% tax on anything over £325,000. If you inherit a house, you may also need to pay capital gains tax (CGT) when you sell it, if the property has increased in value since you inherited it.

 

  1. Should I sell the inherited property or rent it out?

Deciding whether to sell or rent out an inherited property depends on your financial situation and long-term goals. Selling the property gives you a lump sum of cash and eliminates ongoing maintenance costs. Renting it out can provide a steady income stream, but it also comes with responsibilities like finding tenants, managing the property, and covering repair costs. If you’re unsure, consulting a financial adviser can help clarify which option makes the most sense for you.

 

  1. How much will it cost to sell an inherited house?

The costs of selling an inherited house vary based on the method of sale:

  • Estate agent fees: Typically 0.75% to 3% of the sale price
  • Auction fees: Around 2% to 3% of the sale price
  • Legal fees: Usually around £1,000 to £2,000
  • Capital gains tax: If applicable, CGT is paid on the gain made from the sale. Some of these costs can be deducted from your CGT liability, so keep records of all expenses related to the sale
  • Fast cash sale company: No fees

 

  1. Can I sell an inherited house before probate is granted?

No, you cannot legally sell an inherited property before probate is granted, as you need the legal authority to do so. However, you can start preparing the house for sale, speak with estate agents and cash buyers, or line-up potential buyers while waiting for probate to be granted.

 

  1. How do I determine the value of the inherited property?

To establish the value of the inherited property, you can:

  • Ask a local estate agent to give you a market appraisal
  • Get a formal property valuation from a surveyor or professional valuer
  • Use online valuation tools, although they may not be as accurate. The probate value (the property’s value at the time of inheritance) will also be used to determine any inheritance tax or capital gains tax liability.

 

  1. What are the advantages of selling to a cash buyer?

Selling to a cash buyer has several advantages, particularly if you’re looking for a quick and hassle-free sale. The process can be completed in as little as 7 to 21 days, and you won’t need to worry about property chains or mortgages falling through. However, cash buyers usually offer around 80% of the market value (although it could be more).

 

  1. What happens if the property is in a poor condition?

If the inherited property is in a poor condition, you can still sell it. In fact, properties in need of renovation often attract investors or developers. You could sell ‘as-is’ through an auction, where buyers are more likely to expect properties that need work. Alternatively, selling to a quick cash buyer gets you a guaranteed sale and means you can avoid costly repairs or renovations altogether.

 

  1. Can I live in the inherited property instead of selling it?

Yes, you can choose to live in the inherited property. If the house is mortgage-free, you can move in once probate has been granted. If there is still a mortgage on the property, you’ll need to either pay it off or arrange to take it over. Keep in mind that inheritance tax may still apply, and you’ll also need to consider ongoing costs like council tax, utilities, and maintenance, as well as Stamp Duty, but it’s best to speak to a financial advisor to get everything clearly explained. 

 

This FAQ section covers the most commonly asked questions by those selling an inherited house, but every situation is unique. If you’re unsure about any aspect of the process, it’s always a good idea to consult with a solicitor or financial adviser to get tailored advice.

 

Further reading: Useful resources for selling an inherited property in the UK

 

I’ve put together a list of helpful resources for further reading on probate, taxes, legal considerations, and property sales. These websites can guide you through the more intricate parts of selling an inherited house in the UK.

 

Website Description Website Link
GOV.UK – Probate and inheritance Official government site offering guidance on probate applications, inheritance tax, and legal responsibilities when dealing with the estate of a deceased person. www.gov.uk/wills-probate-inheritance
HMRC – Inheritance tax Detailed information on inheritance tax rules, thresholds, and how to calculate and pay any tax due on inherited assets, including property. www.gov.uk/inheritance-tax
The Law Society Offers a directory of solicitors for legal advice on probate, conveyancing, and inheritance matters. Also provides articles on legal obligations. www.lawsociety.org.uk
Citizens Advice Practical advice on the probate process, inheritance tax, and selling inherited property. A great resource for anyone needing clear, free legal guidance. www.citizensadvice.org.uk
Money Advice Service Offers tips on managing inheritance, probate, and how to deal with taxes and legalities. Includes advice on selling inherited properties and financial planning. www.moneyhelper.org.uk
Which? – Selling a house Detailed guide on how to sell a property, including inherited homes. Offers tips on finding estate agents, setting a price, and navigating the legal process. www.which.co.uk/money/mortgages-and-property
Springbok Properties blog Insightful articles and resources about the UK property market, with specific advice on quick house sales, preparing for a sale, and what to look out for when choosing a cash buying company. springbokproperties.co.uk/blog
HomeOwners Alliance Comprehensive advice on selling your home, managing probate, and navigating the UK property market. Includes tools such as property calculators and selling tips. hoa.org.uk
National Association of Property Buyers Provides a list of reputable property buyers in the UK and offers tips on selling inherited properties quickly to cash buyers. napb.co.uk

 

These resources will provide extra support and information to help you get through the process of selling an inherited property. Whether you need legal advice, want to better understand inheritance tax, or are looking for market trends, these websites will be a great starting point.

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By Dan Green, Home Selling Expert Founder

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By Dan Green, Home Selling Expert Founder

I'm a property expert that still remembers the days when having broadband was a selling point! My articles cover issues that homesellers face in the UK and answer the questions we're all asking. I've bought and sold properties and helped others do the same, so my writing comes from years of experience.

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Success rate when selling
through estate agents

Selling to house-buying company

  • Formal offer within 24-48 hours
  • Complete in as little as 14 days
  • No contracts - change your mind if you aren’t happy
  • No viewings or chains
  • Sell your house as-is
  • Sell for approx 80-85% market value
  • Some disreputable companies

Selling with Estate Agent

  • Wait for viewings and offers
  • Delays with solicitors
  • Lengthy contracts - can’t withdraw
  • Viewings at inconvenient times, many will be in chain
  • House should be at its best to impress viewers
  • Get the highest price possible
  • Estate agents are tightly regulated

On average, you should expect to sell for 85-90% of you property’s full value when selling by auction.

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