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By Olivia Heath, House Beautiful
Selling your property under normal circumstances can be a stressful situation, even more so when you’re dealing with a bereavement.
'The additional steps required to sell an inherited property can add
to what is already a demanding time so it's important to ensure you’re
following the necessary steps,' explains Nima Ghasri, Director at
regulated property buyers, Good Move.
'While the paperwork can be greatly increased, some elements of selling
a property remain the same and it’s worth bearing that in mind.'
It’s
important to make the property look as visually appealing as possible
to leave viewers leave with a good and lasting impression, and it’s
worth instructing a chartered surveyor to perform a property survey, so that you can take steps to rectify any major issues that could put buyers off or reduce the value of your home.
Here Nima shares her top tips on selling an inherited property and how to avoid the obstacles that come with the sale.
1. The Will
When
inheriting a property the first step is to make sure the legal side of
things is covered and that the will states the name of the executor (the
person in charge of the deceased’s estate) and the beneficiaries (those
who are to inherit the estate). Shared ownership can make things a
little trickier when making those major decisions, but the next steps
are to apply for a grant of probate from the Probate Registry. If there is more than one executor, there is advice on the probate application form and guidance notes, as well as a handy guide from the government on how to do this part of the process.
2. Apply for probate
Probate gives the executor the legal authority to act on behalf of
the deceased. They will be given access to things like bank accounts,
investments, and anything else that is relevant to the property. In
terms of timeframes, it usually takes a grant of probate around six to
eight weeks to arrive, and then finalised issues of inheritance and the
estate can take from about three to six months, or even longer,
depending on if it’s a large estate with various bank accounts, properties, etc.
3. Speak to the experts
If
you want to avoid extra paperwork, you can get a solicitor to act on
your behalf to provide probate services, and although you may be dealing
with family members during the process, it’s always good to cover
yourself and avoid any additional arguments. If you’re already thinking
about doing work to the property then it’s a good idea to get a
chartered surveyor in as early as possible, the HMRC will also require
an accurate figure for probate purposes.
4. Check your inheritance tax requirements
Inheritance tax is due on estates of more than £325,000 at a rate of 40 per cent, however, there are some variants on this:
- You won’t have to pay any inheritance tax if it is passed to the deceased's spouse or civil partner, a charity or a community amateur sports club.
- If the deceased left the estate to their children or grandchildren, the threshold goes up to £475,000, which also applies to adopted, foster or stepchildren.
Bear in mind that you might have to pay capital gains tax on any profits you make from the property.
5. Selling advice
It’s a good idea to renovate
an inherited property before selling, and although it may be difficult
to change a loved one’s home, it’s usually more desirable for buyers
once the property has been refreshed. Much of the decision to update
will depend on your circumstances and what is best for you.
Those
looking for a quick sale will want to get the most out of their time and
money with some light touches. Things like a good clear out, a fresh
coat of paint in neutral colours and even getting rid of old carpets and
replacing them with wooden floors can make a major difference.
Best practice when selling is always worth considering. Make sure you’re allowing lots of natural light
into the property and declutter rooms of furniture left in the property
during viewing. Don’t forget it’s the outside of the property that
potential buyers will see first, so be sure to tidy up the front and
back gardens, jet wash any paving, and get the windows cleaned and
polished.
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