Selling a Probate Property
The death of a parent or close family member is likely to be one of the hardest times of anyone’s life. Unfortunately, this may often be accompanied with having to clear and sell the property they lived in.
The combination of grief, the emotional experience of sorting through family possessions and the large amounts of paperwork involved in settling their affairs can make this an even more difficult time.
Selling a house in these circumstances is called selling a probate property. This article offers guidance on what applying for probate involves, and more information on the probate process.
What is probate?
Probate is the granting of legal authority to an Executor or family member to administer and disperse the Estate of the deceased, which can include property, money, possessions and other financial assets.
If the person died with a valid Will, a Grant of Probate is needed. If they died without a Will, you will need to apply for a Grant of Letters of Administration. Collectively these are known as the Grant of Representation. Find out more about what do when applying for probate at gov.uk.
The Grant of Probate gives the recipient the right to sign contracts on the deceased’s behalf, such as those that are needed to sell property.
How much does an estate have to be worth to go to probate?
If the value of an estate exceeds £5,000 probate has to be applied for. Generally this means that if the deceased owned property or land then the probate process applies, as the value of property will exceed the probate threshold.
How long does it take to get a grant of probate?
It will vary, depending on the complexity of the Estate of the deceased. If there is no inheritance tax due, probate is usually granted within 6 weeks. If the estate is taxable, then grant of probate could take up to 12 weeks. The probate process, leading to receipt of inheritance funds, takes much longer. It may take up to 12 months for funds to be distributed to beneficiaries, or longer in exceptional circumstances.
What happens to a house during probate?
After the legal owner of a property has died, and if they solely owned the asset, then no one else has a right to continue living there. However, the executor of the Estate may give permission for a family member with an inheritance claim to live in the property during the probate process, especially if it helps to protect the security of the asset. Consent can also be given for a tenant to continue to occupy the property if a tenancy agreement was in place at the time.
No alterations or changes that could affect its value should be made to a property by an occupant while it is in probate.
Who owns a property in probate?
No one legally owns the property during the probate process. It is a kind of legal limbo, until the executor of the Estate is appointed. The executor will then have the responsibility to administer and distribute the assets, transfer ownership or sell the property.
Once probate has been granted what happens next?
The Executor will have a range of tasks they need to perform after probate has been granted. These include:
- Complete HMRC tax forms for inheritance tax and capital gains tax
- Close the deceased’s bank accounts and pay any expenses due
- Value the property
- If property is not passing to a beneficiary, it will need to be put up for sale
- The deceased’s Will is made publicly available
- Inform the deceased’s utility providers and settle final accounts
- Access pension funds and allocate any payout to beneficiaries
- Settle any other outstanding debts with financial institutions
The documents you’ll need for probate
Applying for probate from HMRC requires a significant number of documents relating to the deceased and the property.
- The original Will and any codicils
- Death certificate
- National Insurance number of deceased
- ID (passport / driving licence)
- Utility bills and details of outstanding debts
- Bank statements / account
- Credit card statements
- Property title deeds
- Mortgage information
- Details of any shares and savings
- Details of any pensions received / due
- Funeral expenses
Valuing property for probate
Before applying for probate you will need to have the property valued, even if you are not selling the house. As a house will usually represent the majority of an Estate’s assets, the value of the property will be an important part in the probate application. The valuation will also be essential in determining the level of inheritance tax you will need to pay.
Our team is trained to conduct these valuations sensitively, professionally and with respect. We appreciate that this can be a very difficult time for family members. These valuations are free and there is no obligation attached to them.
Selling a house in probate
There are strict rules as to what you are allowed to do when preparing a house for sale while applying for probate.
Can you sell a property before probate?
You can market a property but not sell it. An estate agent can make the property available for sale before probate has been granted, and conduct viewings with potential buyers. The Executor can also accept an offer while waiting for probate, and agree a sale, but not proceed further.
If a house is in probate can it be sold?
Property sales can be agreed ‘under’ or ‘in’ probate, which means that a Grant of probate is being applied for. However, until probate is granted contracts are not able to be exchanged or any funds from the Estate used to pay for expenses. Potential buyers should be made aware that the property transaction may be subject to delays because of probate issues.
Can you sell property after probate?
Yes. As soon as the Grant of Representation is received, the executors or next of kin can exchange contracts and complete the sale.
How long does it take to sell a house through probate?
It will depend on a number of factors, but property sales are likely to take longer than normal transactions. As mentioned above, applying for probate can take up to 12 weeks. This can however give more time for family members to sort through the possessions of their loved one, sell or disperse furniture and fittings.
Many people choose to sell probate properties at auction. Find out more about what this involves.
Let us help you value your probate property
If you find that you need to sell a house in these circumstances, please get in touch with us and we will provide a free property valuation for you. Our team will also, if required, be able to market the property and organise viewings during the probate process.