What do You Need to Know About Selling a Property in Probate?

Selling a property in probate is actually more difficult than selling a property you own, which is a difficult enough task in itself. Here are some things you’ll need to bear in mind…

So, you’ve received a property in a Will? What now? Well, it’s no secret that the next steps won’t be a walk in the park, and are sure to require legal support and a fair bit of your time and energy.

The reason selling a property gifted to you in probate is more difficult is because there are a few extra hoops to jump through. The best way to jump through these hoops and get the sale moving as quickly as possible is to apply for a grant of probate with your local solicitor.

In this post, we’re going to help you speed up and simplify the process of selling a property in probate so you can get it done as quickly and stress-free as possible.

What You Should Know About Selling Property in Probate

The chances are if you’ve been gifted a property in a loved one’s estate, you were close to them, and this is already a difficult time for you. Add the selling of that property into the mix and this situation could get stressful, quickly.

So, what do you need to know to help you get the ball rolling on your probate property sale?

What is Probate?

The first step to being granted probate is to understand what it is.

When a loved one dies, the institutions in place of administering their estate often require you to obtain a Grant of Probate from the Probate Registry before you’re able to deal with that person’s assets.

A Grant of Probate is a document that names either the Executor/s of the Will, if there is one, or Administrators if there is no Will. To obtain this Grant, you have to assemble details of all the assets and liabilities in the Estate left to you and complete an Inheritance Tax form. Which form you fill out depends on whether inheritance tax is owed or not.

Once you’ve paid off your tax, applied for the Grant and obtained it, the assets must be sold or transferred, the liabilities have to be paid, and the Estate needs to account for any capital gains or income tax.

Is There Anything You Need to Do Before Selling the Property?

Before you approach the estate agents and start marketing the property, there a few things you need to sort out first. You need to make sure:

• The property is secure by checking the windows and doors are locked, switching off appliances and making sure there’s no running water.
• There are no valuables inside such as jewellery and anything that might be worth a lot of money. Also, take away any important documents such as bonds, share certificates, a will, and the deeds to the property.
• The property has insurance. If the property isn’t insured, you could end up losing everything if something happens to it whilst you’re attempting to sell it. Make sure the property is adequately covered and let the insurance company know that this is a property in probate.

Once you have all these security measures in place you can move ahead with the selling of the property.

How Do You Sell a Property in Probate?

As part of the Estate administration process, you need to get the property valued, alongside everything else in the estate. You’ll need this information to complete your probate application and figure out if there’s an inheritance tax to pay, so this is the first thing you should do.

To get a valuation it’s recommended that you speak to two or three different estate agents to accurately reflect the value of your property. These valuations will be based on the value of the property at the time the owner died as opposed to the current selling price.

You can then put your property on the market, but once you’ve received an offer you have to wait until your Grant of probate goes through before you can exchange contracts. Your solicitor should be able to give you an idea of when the probate will likely be granted.

Keep in mind that the person or company named on the Grant of Probate has an obligation to sell it at the open market value. If they sell it for less, a beneficiary can ask the named person for the difference in value.

How Long Does It Take to Sell a Probate Property?

Before you can even start the sales and conveyancing process, you have to achieve a Grant of Probate first which can take around 12 to 14 weeks. Some grants of probate can actually take 6 to 12 months to complete in the more complex cases.

Add to that the time it takes to go through the conveyancing process, which typically takes 8 to 12 weeks in the UK, and you might not see your property sold for a long time; 6 months at the very minimum.

Selling a Property in Probate Will Require Legal Help

In this post, we’ve shared the main things you need to know about selling a probate property to help you move the process along as quickly as possible.

All you need to do is make sure you have the property secured, you get it valued straight away, you put it on the market, and you apply for a grant of Probate in time for the sale. That said, it’s important you seek the help of a solicitor to guide you through it all, and make sure you don’t forget anything.

Once the property is sold, all the beneficiaries to the estate can be paid, and the whole difficult process will be firmly behind you.

Please be advised that this article is for general informational purposes only, and should not be used as a substitute for advice from a trained legal professional. Be sure to consult a legal professional if you’re seeking advice about selling a property in Probate. We are not liable for risks or issues associated with using or acting upon the information on this site.

The post What do You Need to Know About Selling a Property in Probate? appeared first on Addicted to Property.