A solicitor's guide to selling an inherited property in England

Written by D&A Solicitors

Inheriting a home can be a bittersweet experience.

While it often represents a cherished part of a loved one's legacy, it also brings new responsibilities and important decisions about what to do next.

At D&A Solicitors, we understand that selling an inherited property can feel overwhelming during an already difficult time.

This comprehensive guide walks you through the essential legal steps, financial considerations, and practical advice to make the process as smooth as possible.

1 Probate: Your essential first step

Before you can legally sell an inherited home, you must obtain probate - the legal process that gives you authority to deal with the deceased's estate.

This is often the most crucial step that catches people off guard.

If there's a will: The executor named in the will must apply for a Grant of Probate from the Probate Registry.

If there's no will: A close family member (usually the spouse or eldest child) can apply for Letters of Administration to manage the estate.

Probate typically takes 3-6 months, though complex estates can take up to a year or longer. Common delays include:

• Incomplete paperwork
• Disputes between beneficiaries
• Complex asset valuations
• Outstanding debts or tax issues

Our advice: Engage a solicitor specialising in probate early in the process. Professional guidance can prevent costly delays and ensure all legal requirements are met correctly.

2 Understanding inheritance tax obligations

Inheritance Tax (IHT) is often a significant concern when dealing with inherited property. Here's what you need to know:

Current thresholds (2024/25):

• Standard nil-rate band: £325,000
• Residence nil-rate band: Up to £175,000 (when leaving family home to direct descendants)
• Combined potential threshold: Up to £500,000 for qualifying estates

Key points:

• IHT is charged at 40 per cent on the value above the threshold
• The tax is usually due within six months of death
• You may be able to pay IHT on property in instalments over 10 years
• Professional valuation is essential for accurate IHT calculations

Residence Nil-Rate Band: This additional allowance applies when you inherit a family home from parents or grandparents, potentially saving thousands in tax.

3 Preparing your inherited property for sale

Once probate is granted and tax matters are resolved, focus turns to the property itself. Inherited homes often require special attention:

Decluttering and cleaning

• Sort through personal belongings carefully - some items may have significant sentimental or monetary value
• Consider hiring professional house clearance services
• Deep clean the property or hire professional cleaners
• Don't rush this process - take time to involve family members in decisions about personal items

Property assessment

• Conduct a thorough inspection to identify necessary repairs
• Address safety issues immediately (electrical, gas, structural)
• Consider minor improvements that add value: fresh paint, garden tidying, basic maintenance
• Major renovations aren't usually necessary unless they address serious defects

Documentation review

• Locate property deeds and any relevant warranties
• Check for any outstanding mortgages or charges
• Identify any planning permissions or building regulation certificates

4 Professional property valuation

Accurate valuation serves multiple purposes:

• Setting a realistic asking price
• Inheritance Tax calculations
• Capital Gains Tax baseline
• Insurance purposes

Best practice: Obtain valuations from 2-3 experienced estate agents, preferably those familiar with probate sales. Look for agents who understand the unique challenges and timescales involved in inherited property transactions.

5 Choosing your sales method

Traditional estate agent sale

• Pros: Maximum market exposure, professional marketing, negotiation support
• Cons: Longer timescales, agent fees, potential for fall-throughs
• Best for: Properties in good condition where maximising price is the priority

Property auction

• Pros: Quick sale (typically 28 days), legally binding on completion, good for unique properties
• Cons: Less control over final price, auction fees, limited buyer pool
• Best for: Properties needing significant work or in highly desirable locations

Cash buyers/quick sale companies

• Pros: Fast completion, certainty of sale, no chain complications
• Cons: Typically 10-25 per cent below market value
• Best for: When speed is essential or property has significant issues

6 Capital gains tax considerations

Unlike Inheritance Tax, Capital Gains Tax (CGT) only applies to any increase in the property's value since you inherited it.

Current CGT rates on residential property

• 18 per cent for basic-rate taxpayers
• 28 per cent for higher-rate taxpayers

Important: The property receives a "stepped-up basis" to its probate value, meaning you only pay CGT on gains since the date of death, not the original purchase price.

CGT reliefs to consider

• Annual exemption (£6,000 for 2024/25)
• Principal residence relief (if you lived in the property)
• Letting relief (in certain circumstances)

7 The legal sale process

Conveyancing requirements

Your solicitor will need:

• Grant of Probate or Letters of Administration
• Property deeds
• Proof of inheritance
• Any relevant tax clearances

Common probate sale challenges

• Multiple beneficiaries: All parties must agree to the sale terms
• Buyer concerns: Some buyers worry about probate sales, so clear communication is essential
• Title issues: Older properties may have complex title histories requiring resolution

Completion process

• Exchange of contracts (legally binding commitment)
• Completion (transfer of ownership and funds)
• Distribution of proceeds according to the will or intestacy rules

8 Managing the emotional journey

Selling an inherited home involves more than legal and financial considerations. The emotional aspect is equally important:

• Take your time: Don't rush important decisions while grieving
• Involve family: Ensure all beneficiaries are consulted and informed
• Preserve memories: Consider photographing the property and keeping meaningful items
• Seek support: Professional counselling or family support can be invaluable

Common pitfalls to avoid

• Proceeding without proper probate authority
• Underestimating tax liabilities
• Rushing the sale without proper preparation
• Ignoring the needs of multiple beneficiaries
• Failing to maintain the property during the sale process
• Not keeping detailed records for tax purposes

How D&A Solicitors can support you

Our experienced Birmingham-based team provides comprehensive support throughout the entire process:

• Probate applications and estate administration
• Inheritance Tax planning and advice
• Property conveyancing for inherited homes
• Capital Gains Tax guidance
• Dispute resolution between beneficiaries
• Coordination with estate agents and other professionals

Your next steps

Selling an inherited property doesn't have to be overwhelming. With proper legal guidance, careful planning, and professional support, you can navigate this process successfully while honouring your loved one's memory.

Ready to get started? Contact D&A Solicitors today for a consultation. Our compassionate, experienced team understands the unique challenges of inherited property sales and is here to guide you through every step.

Get in touch via email or call.