Probate Sale
Whether you are an executor managing an estate or a beneficiary looking to sell, understanding the steps involved in a probate sale can help you move forward with confidence.
Understanding a Probate Sale
Probate is the legal process of administering a deceased person’s estate, which includes settling debts and distributing assets according to the will (or intestacy laws if no will exists). If the property is solely in the deceased’s name, a Grant of Probate is required before the property can be sold. However, you can market a property for sale during this time as you await the granting of probate, but you can’t exchange contracts until the Grant of Probate has been obtained. This process typically takes around 12 weeks but can vary depending on the estate’s complexity.
Steps to selling a probate property;
1. Obtain a Grant of Probate
You must apply for a Grant of Probate. This legal document confirms your authority to manage and sell the deceased's assets. If multiple executors are named in the will, they must all agree on the sale.
2. Value The Property
It is essential to obtain a professional valuation to determine the property’s market value, and it’s wise to get two valuations from respected local estate agents. A valuation is twofold for probate purposes, to determine potential value and inheritance tax liabilities.
HMRC will require a valuation based on what a willing buyer and seller would agree on in an open market, ensuring it’s an achievable figure rather than an inflated one. Many executors seek a quick sale to settle the estate, making a lower valuation more practical to attract buyers faster. Overvaluing a property can lead to higher inheritance tax liabilities, as HMRC may not adjust the tax bill if the property later sells for less.
Additionally, probate properties are often dated or in need of work, making them more appealing to investors who expect a below-market deal. This combination of fair market pricing, speed of sale, tax efficiency, and property condition contributes to a lower probate valuation.
Lets Find A Home can provide accurate, market-driven valuations to ensure you price the property correctly. Book your free valuation with us now.
3. Inheritance Tax and other costs
If the estate’s value exceeds the Inheritance Tax threshold, tax may be due at 40% on the excess amount. We recommend seeking financial advice to ensure all liabilities are accounted for before proceeding with the sale. We also recommend looking into the appropriate house insurance if the property will be sitting vacant. Most insurers offer “vacant property insurance,” a necessary cost for any property left unoccupied.
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4. Prepare the property for sale
The sentimental value of a loved one’s possessions can be significant, so clearing their belongings and furniture should be done with care and sensitivity. Once the property is clear of belongings, deciding whether to sell the property as-is or make minor improvements can significantly impact its marketability. Lets Find A Home can offer expert advice on cost-effective enhancements to maximize the property’s value.
5. Choose an agent or an auctioneer
This depends on your circumstances and motivation levels; you may opt for a traditional estate agent sale or an auction. Auctions can be a quicker option if you need a swift sale. While selling through an estate agent typically takes longer and isn't dictated upon a quick sale.
6. Instruct a conveyancing solicitor
A solicitor experienced in probate sales will manage the legal paperwork and ensure compliance with all necessary regulations. Lets Find A Home can recommend trusted local conveyancers in probate transactions.
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7. Marketing the property
Effective marketing is crucial in attracting buyers. Lets Find A Home uses professional photography, video for social media, targeted online listings, and local advertising to ensure maximum exposure. We also have a database of potential buyers, especially for those properties which require work.
8. Managing offers and completion
Once offers are received, it’s important to assess them carefully. If you have multiple beneficiaries, keeping communication open is essential. After accepting an offer, the legal process will move towards completion, typically taking 8-12 weeks.
How Lets Find A Home can help?
We understand the unique challenges of selling a probate or inherited property. We always try to go above and beyond to look after the property if you're not local, keeping an eye on it, clearing post, helping if any works are needed, turning the heating on low in the winter etc, and we can also liaise with all executors. If you are dealing with the sale of a probate or inherited property and need expert advice, contact Lets Find A Home today. Alternatively, you can book your free valuation with us now.