Selling a Probate Property is not for the faint-hearted!
It can be difficult and uncertain.
You might feel overwhelmed by the process during a difficult time.
But there’s some good news – if you know what you’re doing, you can:
- Avoid the most common traps
- Maximise your probate property’s value
- Stay in control.
Below is our guide on selling probate properties, broken down into our top 5 considerations.
1. Understand probate property issues
Before you begin your probate journey, you should understand the wider context of the process in the UK.
There are several factors to think about. An awareness of these might not have a direct impact on your specific sale, but it will help you set expectations around the processes, tasks, and time frames involved.
Why probate property matters more than ever
Studies show that half of the UK plans to rely on an inheritance to rescue their finances in the next two decades.
54% of Brits expect to inherit money and 34% admit they’re relying on it to stay afloat financially.
This isn’t because everyone in the country is ruthless and cold. The truth is, it’s a natural consequence of houses becoming unaffordable.
The Bank of Mum and Dad
You’ve probably heard the term ‘Bank of Mum and Dad’ in recent years.
Previously, this remained the reserve of the wealthiest families – but not anymore.
The percentage of parents giving money to their children is rising continually across all classes.
For example, back in 2010, an estimated 20% of first-time buyers had assistance from families to buy their home.
In 2022, this number had grown to approximately 50%.
Disputes rising
Moreover, probate property matters more than ever because the number of disputes is rising.
There’s nearly 1,000 per month in a recent calendar year – a 37% increase compared to a decade ago.
Unfortunately, people are becoming more aggressive now there’s money on the line.
All of this makes the role of a probate executor even more essential.
Inheritance tax liabilities
The latest data from HMRC shows that inheritance tax liabilities are soaring.
There’s been a 12% jump in just one recent tax year, and billions flowing to HMRC mostly from people aged 75+ leaving behind property-heavy estates.
This all paints a clear picture: probate property is growing in peoples’ minds, and kickstarting a huge transfer of wealth throughout the UK.
Probate fraud
Then there’s the growing risk of probate fraud.
So, many properties sit unclaimed, which attracts fraudsters like moths to a flame.
Many will create entirely fake Wills naming imaginary beneficiaries, witnesses and solicitors.
The government even had to take down its public list of unclaimed estates. Why? Because criminals were using it as a shopping list!
You’ll be lucky to get through the probate process without old resentments getting dragged up.
Multi-tasking
If you’re the executor for an estate, there are many issues to consider:
- Conveyancing
- Taxes
- Property maintenance
- Removals
- Paperwork and bills administration.
2. Assess your probate property’s condition
There’s no shortage of extraordinary stories when it comes to selling probate properties.
Home removal experts often say that a person’s home is a window into their life and mindset.
The unpredictability of house clearing is precisely why selling probate properties needs more thought, caution and decisiveness than selling a typical home.
And, sometimes, you may even decide to carry out redecoration, renovation or even an extension to maximise the property’s value.
Example case: A hoarder’s lot
One professional house clearer describes finding stacks of newspapers weighing 42 tonnes.
Entire rooms have been categorised as unwalkable, and in other cases, jars of urine are found neatly stored (like preserves).
Resident pests
There’s also been frequent stories of pest infestations so extensive you half-expect David Attenborough to come around the corner and narrate the scene!
Needless to say, this is most common when the house hasn’t been visited for a long, long time.
Stairway to heaven
In one case, a South-West London clearance team claimed to have discovered three Soviet missiles under the stairs (yes, really!).
This promoted a visit from the bomb squad and a road closure. That’s not exactly what we’d call a ‘typical’ day at work!
Hidden treasure
In some cases, you might discover a priceless gem amongst the mess.
There was a famous story of a hidden Picasso painting selling for £240,000. And another time when rare ceramics were valued at tens of thousands.
So, keep your eyes peeling during the removal of your probate property!
Be aware of empty property risks
Leaving properties empty can leave them exposed to the risk of burglars and/or squatters.
The longer they are empty, the more likely someone with bad intentions will notice.
To reduce the likelihood of this, it helps to regularly visit the property – if it’s possible.
Second Wills
There’s one type of ‘surprise find’ that is far more common than all the others, though: a second, previously unknown, Will.
This can cause quite a shock for everyone involved, including those who had started to act on the laws of intestacy.
Well, that’s got to be halted immediately once a new Will is discovered!
3. Organise probate property paperwork
You should always get the boring ‘legal stuff’ sorted before you touch anything!
You should never move too quickly on a loved one’s property when they pass away.
Without a grant of probate, you’ve got no right to touch anything.
You can market it, you can accept offers, but you cannot hand over the keys until the grant arrives.
Unfortunately, getting the document can take much longer than most people expect.
So, before you do anything else, make sure to apply for probate immediately. Everything else you do afterwards depends on it.
Example case: Catch 22 in Cambridge
In a recent high-profile case, Cambridge City Council locked two daughters out of their late father’s flat, boarding up the door and refusing access because probate hadn’t yet been granted.
This happened even though essential documents needed to obtain the grant of probate were inside the flat.
It took media pressure, letters from the probate office, and weeks of stress before the council relented.
4. Probate property vs normal sales: Know the difference
You would be forgiven for expecting a probate property sale to be identical to a ‘normal’ house sale.
Not to alarm you, but that’s not usually the case!
Your probate property is far more likely to have a few issues with it. Whether you want to fix these up is your decision!
And, even if it sounds like a nice idea, you’ve only got 6 months before you pay your inheritance tax – so managing the cash flow can be a real challenge.
On the other hand, a probate property is chain-free (usually) which can make it more attractive to buyers.
If everything is in perfect condition, it could get a slightly higher price than the market average.
Rented probate properties
The biggest spanner in the works is when a house is being rented at the time of its owners passing.
You need to honour the existing tenancy agreement, even if you don’t want to (the recent passing of the Renters’ Rights Bill contributed to this).
And when there’s more than one of these houses, it’s a huge responsibility, which it can be difficult to find time for.
And, before these choices are made… you need to:
- Get the grant of probate
- Check the Will for instructions
- See if any of the inheritors want to sell their portion!
Quite a minefield, to say the least…
Probate-related taxes
With tax due within six months of the death, some families slash the asking price simply to generate enough cash to pay HMRC.
They know that otherwise they’ll have to dip into their own pockets temporarily.
This is why investors often hunt for probate properties: not because they’re always bargains, but because desperate executors sometimes sell too quickly.
Don’t alter or live in your probate property
It’s important to note that you generally can’t live in probate properties or remove anything from them until the probate process is finished.
Selling a probate property well
Don’t let all the ‘doom and gloom’ online cloud your vision. A successful outcome is possible.
All you need is:
- Decisiveness
- Honesty
- A willingness to do the unglamorous bits properly.
Valuations
Valuations for probate properties are more important than most people realise. Undervaluing the house can trigger an HMRC investigation.
And overvaluing it can leave beneficiaries with a tax bill that doesn’t match reality. Two or three independent valuations are standard.
Transparency matters
While you don’t need to plaster “PROBATE PROPERTY” all over the listing, hiding it from buyers is foolish.
Setting expectations early avoids collapse later in the chain when someone discovers they’re waiting months for paperwork.
Experienced estate agents understand which small fixes are worth doing and which are a waste of money. Fresh paint may be worthwhile – but rewiring the house rarely is!
Insurance
As tempting as it sounds to ignore insurance, you do this at your peril!
A house in the name of someone who has died may not be covered, and vacant properties often void normal policies. One phone call can prevent catastrophe.
Timing
Executors are expected to begin distributing the estate within a year. But most feel pressure to move faster because of the inheritance tax clock.
Rushing can cost you real money, but dithering can cause bigger family disputes.
5. Explore different selling channels
The condition of probate property or time frame involved in selling it can cause headaches.
In these circumstances, selling to cash property buyers (like We Buy Any Home) ensures you complete a quick sale.
Cash buyers directly buy properties, often in any condition or location. They typically offer about 80% of the open market sale, but provide smooth and certain sale in exchange.
This also eliminates the typical costs of selling property.
Conclusion: Probate is hard – so don’t make it harder!
Selling a probate property is never just a financial transaction.
You’ll usually be faced with this task at a difficult time. Grief, logistics, law, and old family dynamics can all rear their head in one go.
A thick skin, and a persistent attitude to learning, will both put you in good stead.
Apply for the grant of probate fast. Guard against fraud. Visit the property more than once. Clear it properly. Value it honestly. Keep good records. And be transparent with buyers.
Most of all, remember this: the house isn’t just an asset. It’s the last chapter of someone’s life.
Sell it with the care that your loved one deserves.
