How to Sell Probate Property: Ultimate Guide to Selling a House in Probate
What is probate?
Probate is all about inheriting a property (or indeed multiple properties) sometimes with land and assets attached, as part of an estate. This estate is made up of the assets (which include investments and bank accounts as well as property) belonging to someone who has recently died. The legal process of administering everything that person has left behind is known as probate.
This includes valuing assets, settling debts, and distributing what’s left after that to beneficiaries. The decision about who is entitled to what is made in accordance with the will. If no will exists, the law decides.
What selling a house in probate means
Almost inevitably, selling a house in probate comes with a huge range of emotions, as it often comes about as the result of losing someone. Add to that the sudden (and sometimes unexpected) responsibility of managing — and possibly selling — the estate, and the whole process can be quite the rollercoaster. But we’re here to help you with the whole thing, from start to finish.
Which we can do with a huge degree of authority as we’ve collectively been through the process — and helped people in your position — hundreds of times. We hope this guide will offer you some reassurance and help you both understand and make your way through the process, so you’re aware of all the options available to you when considering selling a probate property.
What does being an executor mean and what does it have to do with selling a house in probate?
Either the court or the deceased (in their will) decides who is in charge of managing the estate. This is no mean feat, and can include making crucial decisions as well as getting legal approval — the job can take quite some time.
The process goes that firstly, a grant of probate is issued. This is a legal document that is given to the executor (which they must have in order to proceed or take any action at all).
As an executor, you may not have any knowledge or experience of the probate process, but we hope to demystify the process for you here and make it as easy as possible.
What happens in the probate process?
What happens in the probate process?
This has many variations, depending on the scale and complexity of the estate in question, but there are some common steps, which we’ll outline for you here.
- Apply to the probate court for a grant of probate (the executor has to do this themselves). Having obtained this, you can manage and make decisions about the estate, but you can’t get started before you have it. To obtain it, you will be asked questions about the assets, the beneficiaries and the deceased.
- Identify and locate any assets in the estate, which might include property, financial holdings, personal belongings (such as vehicles), bank accounts, and investments.
- Settle any debts — pay off all outstanding balances, which includes mortgages, credit cards, bills, taxes (and anything the deceased owes). It is worth noting here that there are instances where the debt dies with the person, as is the case with a student loan.
- Get valuations of all the assets in the estate, so you know their market value. This does not just apply to property, all high-value items must be valued.
- Find out how much inheritance tax needs to be paid. This means working out how much is due, completing the paperwork and making sure it’s paid in full.
- The final step is distributing what’s left of the estate to the beneficiaries. This can only be done once all taxes and debts have been settled in full.
Is the probate process free?
Sadly not. The costs vary depending on whether you choose to employ a professional to help you or not, and how large or small the estate in question is. As a guide, applying for probate usually costs between £150 and £275.
You will also have to have professional valuations, not just for property but potentially other assets too — and that costs too. Legal advice, if you choose to have it — either in the form of representation or just advice — can also add up. It’s not unusual for the funds to be available to cover your time if you’re the executor, though.
What is the tax on selling a house after probate?
Selling a probate property involves two types of tax, and knowing how they’ll affect your process is essential.
Inheritance tax (IHT)
This is the obvious one — but there are parameters you should be aware of. The current inheritance tax threshold is £325,000 (until 2028) and anything above that is subject to a 40% inheritance tax rate.
Capital gains tax (CGT)
This comes into play if the estate’s property has increased in value significantly since it was originally bought by the deceased. In simple terms, CGT is a tax on any profit that’s made when you sell the property.
It’s worth mentioning here that there are exemptions and reliefs that you might be eligible to claim, which can reduce the overall tax bill. Which is why we would recommend speaking to a professional and getting some tax advice — doing so could save you a lot of money.
Can a property be sold whilst waiting for probate?
As a general rule, not really. This is mostly because, unless you’ve been granted probate, you have no right to sell it, because it isn’t yours. The exception to this (or one of them, at least) is if you happen to jointly own the property with the deceased.
That being said, while you (for the most part) can’t complete the sale before probate, you can certainly get the wheels in motion to do so, and get the house/property ready to be sold. There’s nothing stopping you getting valuations or speaking to estate agents — and indeed you are perfectly entitled to get quotes from cash house buyers like us at Sell House Fast.
Is there more than one way to sell a home in probate?
Traditional Estate Agency
It is also often the case that the property in question is in a compromised condition, in as much as it might need repairs or a significant clean-up before it’s ready for the market.
And, let’s not forget that this route tends to involve property chains, and sales fall through all the time, for a whole array of reasons, even at the final stages — all this can make it an uncertain and frustrating process.
Property Auctions
But similarly to putting your house on the open market, it is fraught with risk and uncertainty — perhaps even more so, when you consider that you’re very much at the mercy of who happens to turn up and show an interest on the day of the auction.
You can sometimes get a high price at auction, driven up by the excitement of the bidding process, but this is far from guaranteed.
You do also need to prepare the property when you sell in auction in terms of cleaning, repair and maintenance, which takes time and money.
Cash House Buyers
How should I decide which route is right for me when selling a probate property?
This is largely down to you as an individual, your circumstances, your priorities and your appetite for risk. But, to help you, here are some key considerations before making that all-important choice:
- Timing: If you need to sell the property fast, without any risk of the buyer backing out, go for a cash house buyer.
- The property market: A traditional sale could take even longer in a property market that isn’t moving anywhere fast.
- Condition of the property: If you need to make significant repairs, and haven’t the time or the funds to do so, a quick cash offer might suit you better.
- The emotional tie: It can be difficult to stomach a protracted process when you have a huge sentimental attachment to the property in question, and similarly, it might feel wrong to put something that means so much to you in an auction.
How we can help you ease the pressure of selling a probate property
Sell House Fast offer a quick, simple solution to selling a probate property. And there’s no need to be uncertain or hang around with the process — this is a guaranteed, fast sale.
And we don’t just guarantee you the money, we’ll take the whole process out of your hands, so you can move on from this tricky time.
What should I do now?
There’s no downplaying the fact that this can be a stressful time, before you even consider the probate process on top of everything else. But now you understand how it works and are aware of all the options available to you, when selling a probate property.
There is no obligation and absolutely nothing to lose in getting a cash offer for the property. This gives you something to compare against and can mean you’ve taken a positive step forward. Get in touch today for a no-obligation, cash offer.
