Inheriting property may sound appealing, but it can be very stressful particularly if you’re looking to sell said property while going through a difficult bereavement.
There are all sorts of things to consider, such as probate, wills, and a whole manner of taxes that you may not have heard of before.
We’ve put together this guide on selling an inherited property in Edinburgh to make the process that little bit easier for you, providing you with a step-by-step process of what you’ll need to do if you’re looking to sell an inherited property in the Edinburgh area.
This will include information on how to apply for probate, how to put an inherited property on the market, and the relevant taxes you’ll be required to pay including inheritance tax, Capital Gains Tax, and Income tax.
What To Do If You’ve Inherited Property
If you’ve inherited property in the Edinburgh area, there are a number of steps you’ll need to take to ensure the property is sold efficiently and legally.
We’ve included each of these steps in detail below to give you a better understanding of how to sell your inherited Edinburgh property.
Check if there is a Will in place
The first step that is necessary when selling an inherited property is to check if there is a Will in place. A Will is a legal document drawn up by the deceased which will dictate what will happen to their assets when they pass away, so this is a good place to start when selling an inherited property.
If a Will has been left, this will usually make the process more straightforward as it will be clear who is inheriting the property in question. If a Will has not been left, you may need to request a Bond of Caution prior to proceeding. A Bond of Caution is essentially an insurance policy that protects beneficiaries of an estate, particularly if they are seeking Confirmation on an inherited property and are unsure if they are entitled to do so.
Apply for probate (How to apply for probate)
The next step in the process is to apply for probate on the inherited property. This will involve the following set of stages:
- Register the death – Before you can apply for your probate, you’ll need to register the death of the deceased. You can do this via your local council or online, and is vital in achieving probate and selling an inherited property as the death certificate will be required for both of these processes. You will also need to show an original copy of the Will if there is one.
- Carry out property valuation – You’ll need to have the property valued at this stage to understand how much the property is worth. You’ll need this information when applying for a grant of probate, so it’s best to get this done sooner than later.
- Apply for a grant of probate – Lastly, you’ll need to apply for a grant of probate. This can be carried out online, by post, or in collaboration with a solicitor of your choice. A grant of probate is a legal document that confirms the executor(s) of a Will are entitled to manage the deceased assets, including any property they may have owned.
Sell your inherited property
Once a grant of probate has been approved, you can get to work selling your inherited property.
This will involve either placing it on the traditional market, organising an auction, or selling it through an online cash-buying company such as We Buy Any Home. This can often be the quicker route to a property sale as companies such as We Buy Any Home will have the funds upfront to pay for Edinburgh property.
If this interests you, get a free cash offer on your property today – you could have the funds in your account within just 7 days.
Pay inheritance tax
The first form of tax you’ll need to pay on an inherited property is inheritance tax. This will be applicable to the entirety of the deceased’s estate (including property), and must be paid before probate will be officially approved.
Estates over the value of £325,000 will incur inheritance tax which is chargeable at 40% over this amount. If the estate is bequeathed to children or grandchildren of the deceased, this threshold will generally increase to £500,000.
Pay Capital Gains Tax
Capital Gains Tax is another tax that may be payable when selling an inherited property.
If you’re selling a property that isn’t your home, you’ll be liable to pay Capital Gains Tax. The rate of tax payable is dependent on your situation as per the details below:
- If you are a higher-rate income taxpayer, you’ll pay 28% on your gains.
- If you pay standard income tax, the rate will vary depending on the size of the gain and taxable income
Pay Income tax
Your income tax is separate from Capital Gains Tax and Inheritance Tax and therefore should remain unaffected provided you’ve paid the relevant taxes you’re liable for when selling an inherited property.
If you’re unsure of any of this, it’s worth reaching out to HMRC directly or seeking help from a qualified accountant/solicitor.
How We Buy Any Home Can Help
If you’re still unsure about selling your inherited Edinburgh property on the traditional market and require some help, reach out to We Buy Any Home.
We are the UK’s best-rated cash property buyer and have a wealth of experience in helping people to sell their inherited properties in the Edinburgh area. Due to this experience, we know exactly how the sale must be carried out in terms of probate and relevant taxes, which means you’re much more likely to achieve a quick property sale, taking some pressure and stress off of your shoulders.
You can get a free cash offer for your property via our website, and we’ll even appoint you a solicitor and property surveyor at our expense for the duration of the property sale. Once all is said and done, you could receive the funds for your property sale in as little as 7 days.
Request a free cash offer for your inherited Edinburgh property today via our website and see how We Buy Any Home can help you.