Selling an inherited property — legal, financial, and practical steps to progress
Inheriting a property can provoke mixed emotions. Whether it is the family home, a distant relative’s flat, or a shared estate among siblings, it often bears a deep personal history and, at times, unexpected responsibilities.
At a time when you might still be grieving, the legal and financial aspects of managing an inherited home can feel overwhelming. Questions come quickly: Do I need to pay tax? When can I sell? What if I don’t want to keep it?
Selling an inherited property is not uncommon, but the process differs from a standard sale in both legal and emotional aspects. In this article, we outline what is involved, how to prepare, and how to manage the sale in a manner that is clear, compliant, and sensitive to your situation.
First things first: check who owns what
Before proceeding with any action, the legal ownership of the property must be established. If you have inherited the home through a Will, the named executor (or administrator, if there is no Will) is responsible for managing the estate.
Ownership may pass to:
- A single individual (you)
- Multiple people (siblings, beneficiaries)
- A trust, if specified in the Will
Clarifying ownership
If the property is owned jointly and the other owner is still alive, the rules depend on whether they hold it as joint tenants or tenants in common. In joint tenancy, ownership passes automatically to the survivor. In tenants in common, the deceased’s share passes according to the Will. Clarifying ownership is essential before any sale begins, and your solicitor can help confirm the structure.
Do I need probate before I sell?
In nearly all cases, yes. Probate is the legal process that enables you to administer the estate of the deceased, including their property.
If you are the executor named in the Will, you must apply for a grant of probate. If there is no Will, you may need to obtain a grant of letters of administration instead.
Contracts can only be exchanged and the sale completed after probate has been granted; however, you can market the property and even accept offers before this stage. Probate generally takes 8 to 12 weeks (sometimes longer), so applying early is essential to prevent unnecessary delays.
What taxes apply when selling an inherited property?
This is where sound financial advice has a significant impact.
Inheritance Tax (IHT)
If the total estate, including property, exceeds the IHT threshold (£325,000 for individuals, up to £500,000 with the residence nil-rate band), inheritance tax may be payable in the tax year 2025/26. The estate is responsible for settling this tax before distributing the assets.
Capital Gains Tax (CGT)
If the property’s value rises between the inheritance date and the sale date, and you do not live in it as your main residence, CGT may be applicable to the profit.
For instance:
- Property inherited at £300,000
- Sold later for £350,000
- £50,000 gain (minus costs and allowances) may be subject to CGT
Consult an accountant or tax adviser promptly, particularly if you intend to postpone the sale or rent out the property initially.
Should I clear the property before listing it?
Yes, both emotionally and practically, clearing the property helps prepare it for marketing and viewings. It is also part of transferring the home into your stewardship.
That said, it is wise to handle this step delicately. If the property belonged to a close relative, take the time to carefully go through belongings. Family photos, paperwork, and keepsakes should be removed thoughtfully, ideally before agents or buyers visit.
Once cleared, you can:
- Deep clean the property
- Arrange basic staging or light redecorating
- Assess whether any repairs or safety updates are needed (especially if the property was empty for some time)
Your estate agent can advise you on whether a fresh coat of paint or minor updates could improve the saleability without over investing.
How do I choose the right agent?
Find an estate agent experienced in probate or inherited sales. They should understand the emotional weight involved and guide you through each step clearly.
Ask the following:
- Have you sold inherited properties before?
- Could you advise us on the timing, presentation, and legal procedures?
- Are you comfortable managing viewings for a property that’s currently vacant or unoccupied?
The right agent will also know how to explain the probate situation to buyers, ensuring that expectations regarding timescales are appropriately managed.
Can I sell to a cash buyer?
Indeed, in some cases, doing so can simplify the process. Cash buyers may be more likely to purchase the property “as seen,” accept longer timelines (if probate is pending), or overlook cosmetic issues that a regular buyer might point out.
However, proceed with caution. While some cash offers are sensible and can speed up the process, others may be exploitative, especially if the home looks outdated or probate has not yet been granted.
Compare all offers openly and take your time. Your agent should help you assess credibility and value, ensuring that your sale reflects the property’s true potential.
Should I renovate before selling?
This depends on the condition of the property and the likely buyer demographic. In many cases, inherited homes are older and might need modernisation. However, unless it involves a minor refresh (e.g., cleaning, painting, decluttering), significant renovation works may not provide a good return, especially if your goal is to sell swiftly.
Often, it’s better to sell “as seen,” at a reasonable price, and to market the home as a project with potential. Allow the next owner to shape it, rather than bearing the cost and stress yourself.
What if I wish to keep or rent the property?
If you plan to keep the property (to live in, rent out, or pass to another family member), you will still need to go through probate, register the home in your name, and handle any Inheritance Tax or liabilities.
If letting is your goal, you may also need to:
- Obtain a landlord licence (depending on the council)
- Update safety certificates (gas, electric, EPC)
- Refurbish or redecorate to meet rental standards
- Inform HM Revenue & Customs about any rental income.
Whether you decide to keep or sell, seeking professional advice helps ensure you stay compliant and avoid costly errors.
Proceed at your own pace, but with good support
Selling an inherited home can feel like a significant milestone, both emotionally and practically, as well as financially. It often marks the end of one chapter and the start of another.
The process involves legal checks, family coordination, and careful financial management, but you do not have to navigate it alone.
With the right estate agent, solicitor, and tax adviser, you can proceed with confidence, ensuring that the sale reflects both the property’s value and your family’s needs.
Looking to navigate the mortgage options of an inherited property?
Our expert mortgage advice can help you make informed decisions, whether you’re looking to sell quickly or maximise your property’s value. Contact HFMC Wealth – telephone 020 740 4700 – email mortgages@hfmcwealth.com.
