Guide : Selling a Probate Property in the UK

14th October 2024

Selling a probate property in the UK can be a complex process due to the legal formalities involved. This guide is designed to help you, as a seller, navigate the sale with ease and ensure that you’re fully informed throughout the process.

What is a Probate Property?

A probate property is a property owned by someone who has passed away. The legal process of dealing with the deceased’s estate, including their property, is known as probate. Before the property can be sold, probate must be granted by the court.

Steps to Selling a Probate Property

1. Obtain a Grant of Probate (or Letters of Administration)

Before you can sell the property, you will need to obtain the legal right to manage the deceased’s estate. This involves applying for a Grant of Probate (if the deceased left a valid will) or Letters of Administration (if there is no will). Here’s what you need to know:

Apply for probate: This can be done online or by post. You’ll need to fill out forms, including details of the estate’s value, and pay the necessary fees.
Timeframe: Probate can take anywhere from a few weeks to several months, depending on the complexity of the estate and any potential disputes.

Without probate, you won’t have the legal authority to sell the property.

2. Valuing the Property

Once probate has been granted, the next step is valuing the property. As part of the probate application process, you’ll need to estimate the property’s value for inheritance tax purposes, so it’s advisable to get a professional valuation early on. Estate agents and RICS-accredited surveyors can provide a probate valuation.

Consideration: Ensure the property is valued correctly, especially if inheritance tax is applicable, as incorrect valuations can lead to penalties.

3. Prepare the Property for Sale

Many probate properties are older or may have been unoccupied for some time, so they may require some preparation before putting them on the market. Here’s how to approach it:

Clean and declutter: Remove personal items and give the property a deep clean to make it more appealing to buyers.
Minor repairs: Address any necessary repairs to improve the property’s presentation, as this can make a significant difference in securing offers.
Consider refurbishment: If the property is outdated, you might want to consider refurbishments to increase its market value. However, this is not always necessary, as many buyers prefer a “blank canvas” they can renovate themselves.

4. Appoint an Estate Agent

Choosing the right estate agent is key to marketing and selling the property. Here at Jeffersons we can help guide you through the process, ensuring that the sale runs smoothly.

Marketing strategy: Agree on how to best present and market the property. Given that some probate properties might require work, your agent should target the right kind of buyers, such as investors or those looking for renovation projects.

5. Legal Considerations

Selling a probate property involves additional legal work compared to a standard sale. You will need a solicitor who specialises in probate to manage the sale process efficiently.

Clear title: Ensure that the property’s ownership and title deeds are in order. The solicitor will ensure there are no legal complications before the sale.
Inheritance Tax (IHT): If the property’s value exceeds £325,000, inheritance tax may be payable. The estate needs to settle any IHT due before the property can be sold. The solicitor can advise on how much tax is payable and the timing of payments.
Capital Gains Tax (CGT): If the property increases in value between the date of death and the sale, CGT might be due. Again, your solicitor or accountant can help with this.

6. Selling the Property

Once probate is granted, and all legal matters are in order, you can proceed with marketing and selling the property:

Accepting offers: Be prepared that probate properties can sometimes take longer to sell, especially if they require work. However, with the right estate agent and pricing, you should attract the right buyers.
Completion time: Keep in mind that probate sales can take longer to complete than a standard sale because of the legal requirements, so be patient.

7. Finalising the Sale

Once you have accepted an offer and are ready to proceed:

Finalise legal paperwork: Your solicitor will complete the necessary legal checks and ensure everything is in place for a smooth sale.
Contract exchange and completion: The sale follows the usual process of exchanging contracts and completing the transaction. Once the sale completes, the property ownership is transferred to the buyer.

Tips for Selling a Probate Property

Stay patient: Probate sales can take longer, so don’t rush the process. Delays are normal, especially if there are legal complications.
Be transparent with buyers: Let potential buyers know it’s a probate sale. They will understand if there are any delays due to probate.
Consider selling ‘as is’: If the property requires significant repairs, some sellers choose to sell it “as is” rather than making costly improvements. Investors or developers often prefer this option.
Ensure you have the authority to sell: Double-check all probate and legal documents to ensure there are no challenges to your authority to sell the property.

Conclusion

Selling a probate property in the UK involves a few extra steps compared to a standard sale, mainly around the legalities of probate and inheritance tax. However, with the right estate agent, solicitor, and approach, the process can be managed smoothly. Stay organised, seek professional advice when needed, and you’ll be well on your way to completing the sale.

This information is a guide only, and does not constitute financial or legal advice.