A Step-by-Step Guide to Selling a Probate Property

When a loved one passes away, managing their estate, including selling a property, can be a daunting task.

In this guide, we will cover the basics of probate selling, including the legal requirements for obtaining the right documentation, getting help from solicitors with inheritance distribution and taxation, and finding the best solutions to sell the property.

By the end of this article, you should have a clear understanding of how the probate process works and how Sell It Rent It Ltd can assist.

Understanding Probate

Probate is the legal process through which a deceased person’s estate is distributed to heirs and designated beneficiaries, and any debts are paid off.

It involves validating the deceased’s will (if one exists) and granting the executor the authority to manage the estate’s affairs, which include all assets (such as property) and liabilities of the deceased.

Obtaining probate falls under the executor’s responsibilities and is mandatory to complete the sale.

The Role of an Executor in Probate

When it comes to selling a probate property, the executor must fulfil several key responsibilities, including:

Valuing the estate
Paying off any outstanding debts
Handling inheritance tax
Distributing assets to beneficiaries

The executor has 12 months—referred to as the “executor’s year”—to begin the distribution of the estate and organise the sale of the property.

While the executor can sell the property without needing approval from other beneficiaries, it is important to sell the house at the correct market value. Otherwise, the executor risks being removed from the will and being sued for the difference in value.

If the estate is complex due to the type of property or circumstances surrounding the deceased (such as debts), hiring a probate solicitor is advised to provide guidance and support throughout the estate administration and property sale process.

Can a House Be Sold Before Probate is Granted?

It is not possible to sell a property before probate is granted, as obtaining probate is a mandatory legal requirement to exchange contracts between the buyer and seller. However, marketing the property and preparing for the sale can commence beforehand.

If you decide to initiate the marketing and listing before obtaining the grant of probate, you must inform the buyer, and any agents involved to ensure that all parties have realistic expectations.

What Documents Do I Need to Apply for a Grant of Probate?

To apply for the grant of probate, you will need the following documents:

Inheritance tax form
PA1P or PA1A form
Bank and credit card statements.
Any investment/savings details
Documents regarding any outstanding bills and debts
Death certificate
Funeral expenses
IDs and National Insurance number of the deceased
Mortgage details
Original will and copies of it
Property deeds
Pension information

The Probate Selling Process

As mentioned, the executor in charge of selling the probate property must follow these key steps:

Valuing the Estate:
Determine the total value of the deceased’s estate, including the property. This is crucial for inheritance tax purposes and should reflect the property’s value at the time of death.
Paying any Inheritance Tax Due:
To obtain the grant of probate, the executor must first settle any inheritance tax with HM Revenue and Customs (HMRC). The inheritance tax is due within six months of the estate owner’s death. As of 2024, HMRC recommends paying inheritance tax at a rate of 40% on the estate’s value exceeding a £325,000 threshold.
Applying for the Grant of Probate:
After obtaining a property valuation and settling any inheritance tax, the executor must apply for the grant of probate, which gives them the legal authorization to manage the estate.
Preparing the Property for Sale:
The executor is responsible for getting the property ready for sale. This includes insuring the property, emptying it, and/or conducting any refurbishing work to enhance its value and accelerate the sale process. Additionally, the executor should notify relevant parties like banks, utility providers, creditors, and local authorities about the death.
Listing the Property for Sale:
The choice of method for selling the property depends on its current condition and the need for a quick sale. Estate agents can help, but they may not be the fastest or cheapest option due to listing fees and commissions. If the property is old and in need of significant repairs, selling at auction or using a cash-buying company like Sell It Rent It Ltd can provide a quicker, guaranteed offer.
Accepting an Offer:
While the property can be marketed and an offer can be accepted before the grant of probate is obtained, it is important to inform the buyer and estate agents of the situation. The sale cannot be finalized without the grant of probate, and it may take up to 12 weeks to receive it. Any accepted offer must be in line with the property’s market value to avoid legal issues with the beneficiaries.
Exchanging Contracts:
Once an offer is accepted and both parties’ solicitors have agreed to the terms, contracts can be exchanged, making the sale legally binding. At this stage, the buyer will pay a deposit.
Completing the Sale:
If the sale price exceeds the probate valuation, capital gains tax may be due. The amount depends on the sale price, original valuation, and associated selling costs. After settling any debts and legal expenses, the remaining funds from the sale will be distributed to the beneficiaries according to the will (if there is one).

Is It Easy to Sell a Probate Home?

Selling a probate home can be complicated due to legal procedures, timescales, and potential issues like the property’s condition. Probate properties are often older and may require repairs, adding financial costs for the potential buyer. Issues with the property may also arise after the sale process begins, causing delays or cancellations.

For this reason, auctioning the property or selling to a cash buyer like Sell It Rent It Ltd may be the easiest option, as these methods allow for a quicker and smoother transaction.

Tips for Selling a Probate Property

To help speed up the sale of a probate property, follow these tips:

Apply for the grant of probate as soon as possible after gathering the necessary documentation.
Consider hiring a solicitor to simplify the process.
Keep all beneficiaries informed.
Value the property at its correct market value.
Pay inheritance tax and settle any outstanding debts.
Get the property ready by cleaning, emptying, insuring, and repairing it as needed (but avoid overspending on repairs to prevent extra capital gains tax).
Choose the best-selling method based on the property’s condition, budget, and urgency (estate agents, auctions, or cash buyers).
Accept the offer and complete the sale.
Settle any debts and capital gains tax.
Distribute funds to the beneficiaries.

How Can Sell It Rent It Ltd Help?

Selling a probate property is a complex process involving legal requirements, logistical challenges, and emotional considerations. If you are looking to sell your probate property quickly and without hassle, Sell It Rent It Ltd can be the ideal solution.

We offer fast and straightforward property sales, providing cash offers and removing the usual complexities of the selling process.