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Selling Property in Probate
If you’re the Executor of a Will, you might be required to handle the sale or transfer of a house, flat or land after the owner has passed.
If the property was owned in a sole name, you’ll probably need a Grant of Probate before you can do anything (although this may not be necessary if the property was jointly owned or put into a trust upon the owner's passing).
When you are selling a house in probate, there are certain considerations that need to be made.
What is probate?
Probate is the legal process of dealing with the estate of someone who’s passed away. This generally involves distributing the assets in accordance with the Will (including selling or transferring their home or land) and clearing any debts.
To apply for a Grant of Probate from the court, which gives permission to deal with the estate, you’ll need to be named an Executor in the deceased’s Will. If there is no Will, only the most entitled person, for example, their closest living and able relative, can apply to become the administrator of the estate (known as Letters of Administration).
The executors of the Will are responsible for selling the property unless the beneficiaries of the Will want to have the property transferred into their names instead.
Do I need probate?
Determining if you need probate depends on the details of the deceased's assets and how they were owned.
If assets were jointly owned, they usually pass directly to the surviving owner without needing probate. However, if assets were solely in the deceased's name, you'll probably need a Grant of Probate to transfer or access them.
How Long Does Probate Take?
After submitting an application, a Grant of Probate typically takes around 18 weeks to be issued, assuming there are no issues. However, the timeline can be extended if the estate is particularly complex.
In many instances, it may take several months just to reach the point where you can officially apply for a Grant of Probate.
What do I need to consider when selling property in probate?
If you’re the Executor of a Will and looking to sell a property in probate, you should understand that it can be quite a long process and there are many things to consider before you get started.
Has the Grant of Probate been approved?
Generally, a property cannot be sold or even be put on the market until a Grant of Probate has been obtained.
A probate application can take a long time to process. While the standard time is said to be around 8 weeks, it's often longer - particularly if there are complications.
Once you have the Grant of Probate, the house can then be marketed and the conveyancing process can begin. However, it’s important to make sure the buyer(s) are aware that you will be waiting for probate to complete before you can complete and exchange contracts.
Have you obtained separate property valuations?
When selling a property in probate, you will need to consider arranging a number of valuations to understand how much the property is worth.
These valuations will be required when applying for probate as the Executor will need to state the deceased’s total assets and liabilities to calculate any Inheritance Tax due.
Are you keeping the property secure?
It is the responsibility of the Executor to keep the property secure and safe whilst it is not being lived in.
Both the probate and conveyancing processes can take a while which means that, while the property is empty, it’s potentially exposed to damage, dampness, vandalism, and fraud.
The executor can be personally liable to the beneficiaries and creditors if something happens to the property which results in it losing value.
Taking care of the property includes ensuring that the correct insurance is in place and that the property is not exposed to any risk of fraud. This can also include making sure the heating is turned on in winter months to avoid burst pipes or damp developing.
Capital Gains Tax
If it takes some time to sell the property after the Grant of Probate has been given, there may be a chance that the value of the property has changed.
This can happen when there has been a particularly long wait for probate to go through, especially in a rising property market.
In the event the property’s value has increased, Executors will need to be aware that there may be a liability for Capital Gains Tax.
How Can GloverPriest Help?
At GloverPriest, our solicitors can advise on or help with any stage of the probate process.
If you would like further advice on selling a property in probate, please don’t hesitate to speak to one of our Conveyancing or Probate experts.
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