Probate: You Cannot Sell Without It
Grant of Probate (or Letters of Administration if the deceased died without a will) is the legal authority that allows executors to deal with the estate, including selling property. You cannot complete a property sale without it — the Land Registry will not register the transfer of title until a grant has been produced.
Applying for probate is done through HM Courts and Tribunals Service (HMCTS) or through a probate solicitor. The process involves completing probate application forms, paying the probate registry fee (£300 for estates over £5,000), and filing an inheritance tax return with HMRC. Current processing times at HMCTS vary but typically run to 8–16 weeks from submission.
Valuing the Property for Probate and IHT
The property must be valued at its open market value at the date of death. This valuation is used for two purposes: calculating inheritance tax (if the estate exceeds the threshold) and establishing your Capital Gains Tax base cost for any future sale. HMRC will challenge values they consider too low, so use a qualified RICS surveyor or multiple estate agent valuations and document your evidence.
Inheritance tax at 40% applies to the estate above the nil rate band (£325,000) and the residence nil rate band (up to £175,000 additional where the property passes to direct descendants). If the estate is above the threshold, IHT must generally be paid before probate is granted — though a specific IHT loan or an instalment arrangement for property can be used.
Capital Gains Tax on Inherited Property
When you sell an inherited property, CGT is calculated on the gain between the probate value (the market value at date of death) and the sale price — not the original purchase price paid by the deceased. This is called the 'uplift' and it means you pay tax only on appreciation during your period of ownership, not the entire historical gain.
If you sell promptly after inheriting at or near the probate value, there may be little or no CGT to pay. If the property increases in value during the period you hold it before selling, CGT will be due. The current residential CGT rates are 18% for basic-rate taxpayers and 24% for higher and additional-rate taxpayers (from April 2024). You have 60 days from completion to report and pay via the HMRC online service.
Managing the Property During Probate
Empty properties carry specific risks and obligations. Standard home insurance policies often exclude cover for properties left vacant for more than 30–60 days — you will need specialist unoccupied property insurance during the probate and sale period. This typically costs £200–£600 per year.
You also need to maintain the property, pay council tax (though a 6-month exemption often applies to empty properties in the name of a deceased person), and keep utilities connected if necessary to prevent damp or pipe damage. Secure the property and consider a keysafe for solicitors and estate agents who need access.
The Practical Sale Process
Once probate is granted, the process is broadly the same as any other sale. However, inherited properties often benefit from a brief period of preparation — clearing belongings (a house clearance company typically charges £300–£1,000), carrying out minor repairs, and sometimes undertaking light staging or redecoration to maximise value.
Executors have a legal duty to obtain the best reasonably achievable price for estate assets, including property. This does not mean you are obliged to spend heavily on renovation — but it does mean that a sale at a significant undervalue to a connected party could be challenged by beneficiaries or HMRC.
Frequently Asked Questions
How long does probate take before I can sell an inherited property? Probate typically takes 4–6 months from application to grant, though it can take longer for complex estates or where HMRC investigates the IHT submission. During this time you can market the property and accept offers but cannot exchange contracts.
Do multiple beneficiaries all need to agree to sell? Yes — if there are multiple executors or beneficiaries with an interest in the property, all must agree to the sale and the price. Disagreements between beneficiaries can delay or prevent a sale and may require legal mediation to resolve.
Can I live in an inherited property before selling it? Yes — and if you live in it as your main residence, Private Residence Relief will apply to any gain accrued during that period of occupation. However, the period between death and your moving in will not attract PRR unless it is very brief.
What is the CGT annual exempt amount for inherited property? Each individual has a CGT annual exempt amount of £3,000 (from April 2024) which can be set against gains from property sales. For a jointly inherited property, each beneficiary has their own exemption, which can reduce the total CGT bill.
Is stamp duty payable when you inherit a property? No — inheritance itself does not trigger stamp duty. Stamp duty only applies when you purchase a property. If you inherit a property, you take on the ownership without any SDLT charge.
What happens to the mortgage on an inherited property? Mortgages do not disappear on death. The estate is responsible for continuing mortgage payments during probate. If the estate cannot service the mortgage, the lender may take possession. Speak to the lender promptly after the death and explain the situation — most will allow a short-term payment arrangement during probate.
Key Takeaways
- ✓You cannot exchange contracts on an inherited property sale until probate is granted — start the application promptly
- ✓Market the property in parallel with the probate application to avoid months of wasted time
- ✓CGT is calculated on the gain from the probate value, not the original purchase price — early sale limits exposure
- ✓Unoccupied property insurance is essential during the probate and sale period
- ✓Executors have a duty to achieve a reasonable price — document your pricing rationale