Can I Sell a House Before Probate? – A Guide

If you inherit a property from a loved one who has passed away, carrying out the practical tasks that are required can feel overwhelming, especially when going through the emotions of losing someone. You will probably have lots of questions about the process, including when you might be in a position to sell the property.

This guide explains the steps that must be followed before a property can be sold, so if you have inherited a property in Putney, the information below will help you to navigate the complexities of selling an inherited property.

What is probate when selling a house?

Probate is the legal right to deal with someone’s estate when they die. Executors of the will can apply for probate or in the absence of a will, the closest living relative can apply for probate. If there is no will, the closest relative applies for ‘letters of administration’ or grant of letters.

When probate is granted, a legal document is issued which provides the authority to deal with the estate, including property sale. Once the grant of probate document is obtained, the executor will have the right to distribute the assets as detailed in the will or under the ‘rules of intestacy’ if there wasn’t a will.

Can you sell a house before probate is granted?

If you inherit a property from someone other than your spouse, you will not have the legal authority to sell the property without probate. The executor does not have the legal right to sell a property until this is confirmed by the grant of probate.

There are a few exceptions to this:

• A surviving spouse, where the couple were joint tenants
• A trustee where the property is held in a trust fund

Who can sell an inherited house?

The sale of an inherited house should be arranged as instructed in the will. Generally, the executor of an estate is the person who has the right to sell an inherited property, provided that this is specified in the will, or the court has authorised the executor to do so.

It is the executor’s decision whether to sell the property and when. Typically, the executor will be a relative, but they could also be a solicitor or a friend.

If the will specifies that the property is left to a beneficiary, the executor will be required to transfer ownership to the beneficiary and once the beneficiary has legal ownership, they have the right to sell the property.

When there is no will left behind, the closest relative can apply to be the administrator to obtain legal ownership of the property, and they would then be able to sell the property.

Selling a house in probate – key steps to follow

These are the steps to follow for selling a house in probate:

1. Consult the will

The first part of the process is to consult the will to identify who the executor is and how the deceased person wanted their assets to be distributed. Locating the will is not always easy but if you know who their solicitor is, this will be a good place to start.

The will should include instructions on who inherits the property, or if it doesn’t, the executor has the responsibility to decide how the estate is distributed. If there was no will, the estate will be distributed according to the ‘rules of intestacy’.

2. Value the property for probate

Before applying for probate, the property must be valued to obtain the current market value of the property. An experienced, local estate agent will be able to provide a valuation of the market value of the property, though it needs a special valuation for the purposes of probate.

https://www.gov.uk/inheritance-taxThe property valuation can then be used to help determine the value of the estate and to calculate any inheritance tax that may be owed.

You may choose to hire a probate solicitor and seek professional legal advice to help with all the legal aspects, especially if the estate is complicated, the will is unclear, or it may be disputed.

3. Understand inheritance tax liability

Once you have the valuation of the property and the value of the rest of the estate, including all assets and taking any outstanding debts into account, you will be in a position to calculate any inheritance tax that is payable to HMRC.

The tax-free threshold is £325,00 but rises to £500,000 if the estate is left to children or grandchildren. The current inheritance tax rate is 40%, but if the value of the estate is lower than the threshold, there is no inheritance tax to be paid. If the estate is valued at £100,000 above the threshold, inheritance would only apply to the £100,000. Inheritance tax must be paid within six months of the person’s death.

4. Get a Grant of Probate

The next step is to apply for a grant of probate to obtain the legal right to deal with the distribution of the assets. Either the executor of the will or the administrator (if there is no will) can apply for grant of probate.

The application can be made online via the gov.uk website and it will usually take up to 12 weeks to complete the probate process. You are not able to apply for probate until any inheritance tax is paid.

5. Get the house ready for sale

Once the grant of probate has been issued, the property can be sold and therefore you should prepare the house for sale as early as possible. This includes emptying the property of any belongings and you may want to arrange a deep clean or make some small improvements to make the property more attractive to potential buyers. For example, redecorating or replacing dated carpets could help to achieve a higher selling price for the property.

Make sure that the property is secure and keep on top of any regular maintenance such as tidying up the garden, to ensure a good first impression for viewings.

An EPC (Energy Performance Certificate) is also required before you put the property on the market. You can arrange this yourself or your estate agent may be able to arrange this for you before they list the property for sale.

Once the property is prepared, you can instruct an estate agent to market and manage the sale process. If you want to leave as much of the work to the estate agent as possible, opt for an estate agent that offers a comprehensive service. Some estate agents will take care of all the viewings and negotiations, which will lighten the burden for you.

6. Evaluate and accept an offer

Once the property is on the market and viewings start to take place, you will hopefully receive a number of offers, which you can evaluate and decide whether to accept. The estate agent will usually negotiate with buyers and inform you when offers are submitted and then it is up to you to decide if you want to accept.

If you are looking for a quick sale, it may be better to choose an offer from a buyer who is not involved in a property chain. Cash buyers are a good option, as they will not require a mortgage to proceed with the purchase, which can speed the sale up.

7. Exchange contracts and complete the sale

If you receive an offer that you choose to accept, your solicitor will then complete all the paperwork, including the exchange of contracts to complete the sale. Once the exchange of contracts is completed, both the buyer and seller are legally obliged to go ahead with the transfer of ownership.

You will agree on a completion date when you hand the keys over to the new owner and the solicitor will transfer the money from the buyer’s account to the seller’s account. At this point the sale is legally complete.

Understand probate when selling an inherited house?

The process of applying for probate can be complicated but we can help with every step of the sale process from providing a valuation to finding a buyer. Contact us today to book a valuation or to ask any questions you might have about selling an inherited property.