So, You've Inherited a Property – What Do You Do Next?

There's a lot of information out there about what happens when you inherit a house, but not all of it is correct or helpful.

Here we explain exactly what you can and can't do and what you need to know before you can make any decisions about what to do with an inherited property.

Complicated legal processes at a difficult time  

Firstly, if you've inherited a property, it's very likely that someone close to you has died and so, apart from anything else, any decisions you make and the work you will have to do is likely to be affected by the situation. It's often a very difficult and sensitive time.

It's likely that you will want to go straight to the house to retrieve items and heirlooms that hold great sentiment for you, but you must wait. There is a legal process to be adhered to called probate (or estate administration).

What is a probate house sale?

Probate is the term commonly used to describe the legal process of handling a person's financial affairs and property (their estate) after they die. It's a process that requires the executor/s (if there's a Will) or an estate administrator (if there is no Will) to apply to the probate registry office for permission to settle debts, sell property, collect assets and distribute legacies to the beneficiaries.

As an executor, if your application to the probate office is successful, you will receive grant of representation. If you're applying as an administrator because there was no will (the person died intestate), you will be granted letters of administration. Grant of representation and letters of administration are both official documents which allow you to handle the estate (i.e. carry out the probate process).

A probate house sale is therefore any property which is being sold following the death of a previous owner.

First things first – Before applying for probate

The reason you cannot start taking items from the property immediately is that the entire estate will need to be valued before probate can commence – even if you're a beneficiary and the items you want to remove have been given to you in the Will. Houses, cars, jewellery, bank accounts, investments, and recent gifts of money or property made before the deceased passed away, must be taken into consideration so that you can work out if there is any inheritance tax to pay.

If you need to provide a property valuation letter to the probate registry, we can produce this for you following a property sale appraisal meeting – this entails a 45 minute phone call to establish the details of the property.

Once the estate has been valued, you can go ahead and apply for grant of representation or letters of administration.

For more information why not click through to our probate advice page.

When can I start planning what to do with the property?

You can start making plans for what you want to do with an inherited property as soon as you like; you just can't do anything official before you receive grant of representation or letters of administration.

If you wish to undertake a probate house sale, someone with legal authority will need to sign the transfer documents that officially record the transfer from one owner to the next. Until you have received grant of representation or letters of administration, you won't be able to do this and so the property cannot be sold yet.

Is selling a probate property a good idea?

There will be many instances in which it will make the most logical sense to sell an inherited property. For instance, if there are numerous beneficiaries to the entire estate (such as brothers and sisters), selling the property might make it easier to divide up the total assets.

If you choose to sell, then you will need to decide how you will sell the property; this can be a tricky decision and one that should not be made lightly.

Many people will automatically approach an estate agent to gain a valuation, but this may not be the most appropriate course of action.

Estate agents generally are only able to offer one method of sale; private treaty. This is the method that most people know of and understand most clearly. However, it is not always the best method for probate sales, especially for properties which might need updating, modernising or have other types of issue, such as a short lease or subsidence, or if a quick sale is needed.

In many situations, an auction sale is likely to be the best method of sale for a probate property and there are now different methods of auction available. The modern method auction can sell your property by tender – which means that unlike a traditional auction where the property is sold the moment the gavel falls, in a modern method auction, the highest bidder makes a commitment to buy the property, but there is a 20-working-day period before exchange of contracts.

This means that buyers may be potential owner occupiers as well as investors/developers and the period between end of auction and exchange of contracts gives buyers the time to engage with mortgage lenders to secure funds rather than having to have the funds ready on the day of the auction.

Find out more on our page which explains the three methods of house sale.

Can I put the property on the market before I receive grant of probate?

The short answer is 'yes' because it's not illegal to market a probate property before being officially recognised as the executor or estate administrator. However, should you receive an offer before you have received the official documents of representation, you will not be able to complete the sale, you could therefore lose a potential buyer and this could make the whole process more protracted.

The Gov.UK website says it usually takes around eight weeks before the official grants of probate are sent out (once they have received all the necessary documents), but do remember that certain times of the year may be busier than others and that delays may be caused by other factors (the COVID-19 pandemic caused a huge backlog, for example).

You could start cleaning the property or doing minor repair work, but until you receive the documents that allow you to officially act in administering the estate, it's advisable not to put the property on the market or remove any contents.

Speak to Higgins-Drysdale for best advice on how to sell your property

At Higgins Drysdale, we will give you the best advice for your property. We are not tied to one method of sale, but if we feel that the best method of sale for your property and your circumstances is by auction, we can guide you through the process to make sure you are happy with the outcomes.

To begin the process of selling an inherited property with Higgins Drysdale, we would need to carry out a free Property Sale Appraisal. This meeting is generally carried out by phone as there is no need for us to view the property at this stage.

We will need some basic information about the property including the full address, type of property (flat, house, bungalow, etc.), the occupancy status (whether it's vacant or tenanted), and your estimate of the current condition.  We will talk you through what we need and then you will receive your property sale appraisal email within 24 hours.

This email will detail what method of sale we believe is most appropriate for your property, the estimated market value, the sale terms we would recommend and more. We also provide breakdowns of our recommended reserve price and publishable guide price, as well as a predicted outcome price.  

We are always happy to answer any questions you may have about the appraisal and find that a follow-up conversation is usually a good idea to discuss the figures and explain the auction processes a bit further. There is no obligation to go ahead with the sale using Higgins Drysdale.

You can book your property sale appraisal using our booking tool which allows you to choose the date and time that works best for you. If you just want to find out a bit more about how to auction a house, we are happy to have a chat over the phone or through our online chat facility.