Selling inherited property can be a complicated procedure. Having to balance loss and financial needs can be a tall order, but with the right legal advice, that burden can be lifted. Our team at Smith Partnership Move have created this handy guide to make it easier to understand how to sell your inherited property. Our dedicated legal experts are on hand to give jargon-free advice and help you through this difficult time.
If the property was solely in the name of the deceased, a grant of probate will be needed to give the executor of the estate power to sell or transfer the property. The grant is a legal document that confirms the validity of the will and gives the executor control over the estate.
This initial process can be time-consuming, especially if you opt to do it yourself. For a quicker and clearer process, consult our probate experts. With a wealth of experience behind them, a lawyer who knows the ins and outs of the process and can ensure the quickest turnaround time possible.
As soon as you’ve been granted probate, you will need to get the estate valued. This information is for the benefit of the courts so that they have a record of how much the person’s estate is worth. To get a clear idea of the value of your property, you should obtain two or three valuations from estate agents and use the average. Alternatively, ask a qualified surveyor to value the property.
The title deed is one of the most important documents and one your legal team will help find.
If the property is not registered, as can be the case with old or rural properties, you or your property lawyer will need to find the physical title deed either on the property’s premises or stored by the deceased’s bank or solicitor.
This is where you really need the sharp eyes of a legal expert. A lawyer should scan the deed for any and all concerns. These can be anything, from a misspelt name to an incorrect date. If there are any concerns, it is best to get them sorted before you sell the property.
It is important to remember that the property cannot be sold without a grant being obtained. You can have the property valued, placed on the market and shown, but no sale can take place without this vital document. The deceased’s property will also have to be cleared of all its contents before it can be sold, which can be a time-consuming and laborious task.
With this in mind, you will have to choose between an estate agent or a property buying company. Both are worth considering, with each of them having their own pros and cons.
Estate agents always look to make a profit and will value properties higher than a property buying company.
When dealing with the sale of a loved one’s property you will have to face taxes. The two main concerns are Inheritance Tax and Capital Gains Tax.
Inheritance Tax is applicable on properties valued at more than £325,000. However, if the property is passed on to children or grandchildren, the threshold is increased to £425,000. The rate of Inheritance Tax is 40% on anything above the threshold amount, for example:
You will have to pay £10,000 within six months of your loved one passing.
The rate of inheritance can be reduced to 36% if 10% or more of the estate is donated to charity. However, it is best to get advice from an independent financial advisor.
Capital Gains Tax is different from Inheritance Tax in that it is only charged on the profit from a sale. The rate of tax can vary, so consult a legal expert to find out how much you may need to pay in the settlement of your loved one’s estate.
As you can see, with a little explanation and time, the task of dealing with your loved one’s estate doesn’t have to be a difficult task. At Smith Partnership Move, we have specialised teams of highly trained legal and property experts to handle all aspects of property sale. We understand the importance of communication and our straight-talking, client-focused approach makes us the best team for you. Contact one of our many local offices today to get the support you deserve.