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SELLING A HOUSE YOU HAVE BEEN LEFT




If youve been left a property through someones will, it can be a difficult time for all involved. Most people may want to sell the house quickly for emotional reasons or even to prevent high maintenance costs. However, selling a probate property is a little more complicated than a regular sale. Executors lacking experience in handling probate often underestimate how much time and work this responsibility can require. But dont panic! Demand for all kinds of property is increasing and with roughly 1 in 10 properties on the UK market reportedly undergoing probate, they are an increasingly familiar option to prospective home buyers.

What is probate?
Probate is the legal and financial process involved in dealing with property, money and assets of a person who has died. Before the next of kin or Executor named in the Will can claim, transfer, sell or distribute any of the deceaseds assets they may have to apply for probate. When applying for probate, a Grant of Representation or Grant of Probate is an official document that is usually issued to the Executors of a Will OR the closest family members if there is no Will, confirming their authority to administer the Estate of someone who has passed away. The process includes the legal authority to enter into and sign contracts on behalf of the Estate; such as the contract to sell a house.

Probate property
If there is a property in the Estate, it wont stop you from putting the property onto the market, but the Grant of Representation or Probate will be needed to complete the sale. As part of the Estate administration process youll need to get the property valued as it forms part of the Estate. The Estate value is needed to calculate whether there is Inheritance Tax to pay, and for when youre completing the Probate application. It is recommended that you obtain two or three estate agent valuations, these should reflect the value of the property as at the date the owner died, rather than actual selling price. Once youve received an offer on the probate property, you can exchange contracts if youre an Executor in the Will, but the property sale cannot complete until the Grant of Probate has been provided to your solicitor.

the person or company named on the Grant of Probate is under an obligation to sell the probate property for the open market value. Therefore, if the property is sold for less than the full market price a beneficiary can look to the person named on the Grant for the difference in value.

How long does it take to get the Grant of Probate? While there is nothing to prevent executors from instructing agents to market the property, or even accepting an offer on it, contracts cant be exchanged until the grant has been obtained. The estate agent and the potential buyers must be given a realistic timescale for obtaining the grant at the outset. If the executors have accepted an offer on the property soon after the deceaseds death and before applying for the grant, the sale price can be given as the property value in the return of estate information form, or IHT account.

The executors must also be aware that the deceaseds property will need to be cleared of all its contents before the property is sold and again - something that can be quite time consuming to achieve. Some common circumstances and the time taken include:* Non-taxable estate (no inheritance Tax due) - around 6 weeks* Taxable estate (inheritance Tax is due) - around 12 weeks* Urgent situations (e.g. for court cases) - as little as 2 weeks

What documents will I need for probate?
There are some documents you will need to give your solicitor AT SAMBLE bURTON & WORTH for working out the value of the estate in order to apply for Grant of Probate. These may be found in the deceaseds files or you or your solicitor will have to request them from the various organisations. These include: * Original will* Death certificate* NI number of deceased* ID (passport / driving licence)* Utility bills and details of outstanding debts* Bank statements / account* Credit card statements* Property deeds* Mortgage information* Details of any shares and savings* Details of any pensions received / due* Funeral expenses
What extra costs should I be aware of?
If youre not doing it yourself, youll have to pay to have the house cleaned before selling, and if its left unoccupied for more than 30 days, youll need to pay for unoccupied property insurance. Youll also need to factor in maintenance costs, particularly in winter when the house will need to be heated regularly to avoid damp. Another cost to think about is valuations. To get the Inheritance Tax correct on your property youll want to commission a minimum of three independent valuations. Proceed with caution
It is sometimes the case that there are third party interests in the property which the beneficiaries are not aware of. This can be a mortgage, equity release charges or another person is actually on the property title and entitled to the whole of the property regardless of what the will or Intestacy Rules state. Be careful when cleaning out the contents of a probate property (even the garden shed), as its quite common for unregistered title deeds to be thrown out with other items but the deeds are vital to proving the propertys ownership. If in doubt, with any documents keep them safe. Should there be no evidence of ownership the Estate may end up paying a solicitor or conveyancer to reconstitute to the title which can be a timely and costly process





 
Samble, Burton & Worth

1 Abbey Arcade, Market Place, Burton-on-Trent   DE14 1HQ, England
01283 565731 - or - 01283 510569


 
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Last updated: January 17th, 2022.