What Are Your Options When Inheriting A House From Your Parents?

Choices to make when you’re inheriting a house from your parents

Inheriting a house from your parents in the UK is a significant event that comes with a mix of emotions and financial considerations. It’s a time of reflection, but also one that requires making informed decisions, especially around inheritance and taxes. Upon inheriting a house, you have several paths you can take, each with its own set of considerations as it forms part of the deceased’s estate – known as probate. Here’s a few solutions: 

1. Live in the property. Moving into the inherited house could be an option, but consider whether it fits your lifestyle and financial situation.

2. Rent it out. Becoming a landlord by renting out the property can provide a steady income stream. However, this comes with responsibilities and potential legal obligations.

3. Sell the property. For many, selling the inherited property is a practical choice, especially if maintaining it is financially or logistically challenging.

Selling a house in the UK under probate 

Selling a house in the UK that’s under probate – usually a property you’ve inherited from your parents – involves a series of steps, designed to ensure that the property is legally transferred from the deceased to the new owner. Here’s a simplified overview of the process:

1. Obtain probate. The first step is to obtain probate, which is the legal right to deal with the deceased’s estate. This involves submitting an application to the Probate Registry, including the Will (if one exists), a death certificate, and an estimate of the estate’s value. Probate is granted to the Executor named in the Will or, if there’s no Will, to a close relative of the deceased.

2. Valuation of the property. Before or during the probate application, the property must be valued. This valuation is crucial for determining if inheritance tax is due and for setting a fair market price when selling the property. It’s advisable to get a professional valuation to ensure accuracy.

3. Clearing Inheritance Tax. If the estate is liable for inheritance tax, this must be paid or at least initiated before probate is granted. The tax is calculated based on the total value of the estate, including the property.

4. Selling the property. The Executor has to wait until they have been granted probate before they can put the property on the market. This involves choosing how to sell (e.g., through an estate agent or directly to cash house buyers), marketing the property, and negotiating with potential buyers. Selling to cash house buyers like SellHouseFast.co.ukcan be advantageous, especially if you’re looking for a quick and hassle-free sale.

5. Completing the sale. After accepting an offer, the legal process of transferring the property to the new owner begins. This involves solicitors for both the buyer and seller, who will handle the exchange of contracts and the final completion of the sale. The completion date is when the seller must vacate the property, and the buyer takes legal possession.

6. Distributing the estate. With the property sold, the proceeds from the sale are added to the estate’s total assets. These are then distributed according to the Will or, if there’s no will, according to the rules of intestacy.

If you’re dealing with a probate property and looking for a quick, straightforward sale, SellHouseFast.co.uk can help. As cash house buyers, we offer a fast and efficient service, allowing you to sell your house fast without the delays and complications often associated with probate sales. Contact us today to find out how we can assist you in selling your probate property with ease. 

Understanding inheritance tax 

Inheritance tax in the UK is levied on estates that exceed a certain threshold, currently set at £325,000. For estates above this value, the tax rate is 40% on the amount over the threshold. An additional allowance is available if you’re inheriting a home from your parents, potentially increasing the threshold if you’re a direct descendant.

This can result in a substantial financial liability for the inheritor, particularly if the majority of the estate’s value is tied up in the property. Inheritance tax is a tax on the estate (the property, money, and possessions) of someone who has passed away. There’s a lot to consider when dealing with inheritance tax on property, as it can significantly affect the value of the inheritance.

Why selling your inherited house for cash makes sense

Here are five reasons why selling an inherited house for cash is a compelling solution:

1. Quick resolution. Selling to cash house buyers like SellHouseFast.co.uk means you can complete the sale quickly, often within a matter of weeks. This is particularly advantageous if you’re looking to settle the estate promptly and distribute any inheritance without the prolonged process of a traditional sale.

2. Avoid inheritance tax complications. By selling the property for cash, you can more easily manage any inheritance tax liabilities. The proceeds from the sale can be used to cover any tax owed, ensuring that the inheritance tax on the property doesn’t become a burden.

3. No need for expensive upkeep: Maintaining a property while trying to sell it can be time-consuming and costly. Selling for cash eliminates the need for ongoing maintenance, allowing you to focus on other aspects of managing the estate.

4. Certainty of sale. The traditional property market can be unpredictable, with sales falling through for various reasons. Cash buyers like SellHouseFast.co.uk offer a guaranteed sale, providing peace of mind and financial certainty at a potentially turbulent time.

5. Reduced costs. Selling a house through traditional means involves estate agent fees, legal costs, and potentially other expenses such as home improvement costs to make the property more marketable. A cash sale typically involves fewer costs, meaning more of the sale proceeds go directly to the beneficiaries of the estate.

Advantages of selling your inherited property to SellHouseFast.co.uk

Choosing to sell an inherited property can help avoid the complexities of inheritance tax and the ongoing costs of property maintenance. At Sellhousefast.co.uk we take the strain out of selling your inherited property and provide you with a fast, cash solution, without the delays of the traditional market.

As cash house buyers, we offer a straightforward and secure transaction, free from the uncertainties of chain breaks. Selling a probate property with tenants or one that requires significant upkeep can be challenging. We buy any house or flat, regardless of condition. Selling quickly can help settle any inheritance tax liabilities in a timely manner, providing peace of mind during a difficult period.If you’re navigating the complexities of inheriting a house and considering selling, contact SellHouseFast.co.uk. Our friendly and informative team is ready to offer you a fast, fair cash offer, helping you move forward with confidence.