Selling an Inherited House UK: Complete Step-by-Step Guide 2025
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Selling an inherited property involves unique challenges: probate requirements, capital gains tax, multiple beneficiaries, emotional attachments, and urgent timelines. This comprehensive guide explains exactly how to sell an inherited house in the UK, from valuation through completion, including tax implications and timing considerations.
Quick Overview
- Probate required: Cannot complete sale until Grant of Probate received (8-16 weeks)
- Capital gains tax: May apply if property value increased since death
- Costs: Estate agent (1-3%), solicitor (£1-2K), EPC, potential CGT
- Timeline: 6-9 months total (probate 3-4 months, sale 3-6 months)
- Multiple owners: All beneficiaries must agree to sell
- Can market before probate: But cannot exchange contracts until grant received
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Do You Need Probate to Sell?
Most inherited property sales require probate. You need Grant of Probate (with will) or Letters of Administration (without will) to prove legal authority to sell.
YES - Probate Required (Most Common)
You need probate if:
- Property owned solely by deceased (even if mortgage paid off)
- Deceased owned property as tenants in common (their share needs probate)
- Total estate value exceeds £5,000 (property almost always pushes over)
- Buyer's solicitor or Land Registry requires probate to transfer title
You can instruct estate agents and market property during probate, but cannot exchange contracts or complete sale until grant received.
NO - Probate Not Required (Rare)
You may not need probate if:
- Joint tenants: Property owned as joint tenants (common for married couples) - ownership passes automatically to surviving owner
- Property in trust: Held in trust with trustees managing sale
- Very small estates: Total estate under £5,000 (extremely rare with property)
Capital Gains Tax on Inherited Property
Unlike inheritance tax (paid on the estate), capital gains tax (CGT) may be payable by beneficiaries if property value increased between death and sale.
How CGT Works on Inherited Property
Baseline value: Property value on date of death (probate valuation)
Sale value: Actual sale price achieved
Taxable gain: Sale price minus date-of-death value minus costs
Example:
- Date of death value: £300,000
- Sale price 18 months later: £340,000
- Costs (estate agent, solicitor, improvements): £12,000
- Taxable gain: £340,000 - £300,000 - £12,000 = £28,000
- CGT (at 24% for higher rate taxpayers on property): £6,720
Each beneficiary pays CGT on their share of gain (can use personal £3,000 annual allowance 2025/26)
Ways to Reduce or Avoid CGT
1. Sell Quickly (Best Strategy)
Less time between death and sale = less chance of value increase = less/no CGT. Selling within 6-12 months usually avoids CGT as property values don't rise significantly.
2. Claim Main Residence Relief (If You Lived There)
If you lived in inherited property as your main home before selling, claim relief for that period. Can claim relief for final 9 months of ownership automatically. Proportionate relief if lived there part of time.
3. Use Annual CGT Allowance
£3,000 annual exemption per person (2025/26 tax year). Multiple beneficiaries each get own allowance. Transfer assets between spouses before selling (they get separate allowance).
4. Deduct All Allowable Costs
Reduce taxable gain by deducting: estate agent fees, solicitor fees, improvements made before sale (not repairs), probate costs directly related to sale.
Multiple Inheritors: What If You Can't Agree?
When property left to multiple beneficiaries (e.g., three siblings equally), all must agree on sale terms, price, and timing.
Common Disagreements
- Timing: One wants immediate sale, another wants to wait for market improvement
- Price: Disagreement over acceptable offer amount
- One wants to keep it: One beneficiary wants to buy out others but can't agree value
- Emotional attachment: Family home with sentimental value vs practical need for money
Options to Resolve Disputes
- Negotiation and compromise: Mediation, family meeting, compromise on price/timing
- One buys out others: Beneficiary wanting to keep property obtains mortgage to buy others' shares at fair market value
- Rent property temporarily: Generate income for all while delaying decision
- Court application (last resort): Executor applies for court order to force sale under Trusts of Land and Appointment of Trustees Act 1996. Court usually orders sale unless exceptional circumstances. Expensive (£5,000-£20,000 legal costs) and relationship-damaging.
Complete Sale Process Timeline
Months 1-4: Probate Process
- Value property (get 3 estate agent valuations or RICS survey)
- Gather all estate asset valuations
- Complete inheritance tax forms (IHT205 or IHT400)
- Submit probate application (online faster than paper)
- Wait for Grant of Probate (8-12 weeks online, 12-16 weeks paper)
- Meanwhile: Can instruct estate agent, market property, accept offers subject to probate
Months 4-6: Marketing and Offers
- Instruct estate agent (sole or multi-agency, negotiate fee)
- Arrange EPC (Energy Performance Certificate) - required by law (£60-120)
- Professional photos, floor plans, listing on Rightmove/Zoopla
- Viewings and negotiations
- Accept offer (inform all beneficiaries, get agreement)
- Instruct conveyancing solicitor
Months 6-9: Legal Process and Completion
- Buyer's survey (be prepared for renegotiation)
- Solicitor handles searches, enquiries, contract drafts
- Exchange contracts (legally binding, buyer pays 10% deposit)
- Completion (typically 2-4 weeks after exchange)
- Funds transferred, keys handed over
- Pay off mortgage if applicable, estate agent fees, solicitor fees
- Net proceeds to estate account for distribution
Costs of Selling Inherited Property
Typical Cost Breakdown
| Cost | Amount |
|---|---|
| Estate Agent Fee 1-3% of sale price + VAT | £3,000-£10,000 on £300K property |
| Conveyancing Solicitor Legal work + disbursements | £1,000-£2,000 |
| EPC (Energy Certificate) Required by law | £60-£120 |
| Probate Fee If estate over £5K | £300 |
| Early Repayment Charge If mortgage within fixed term | 0-5% of mortgage balance |
| Capital Gains Tax If value increased | 18-24% of gain |
| Total Typical Costs | £5,000-£15,000+ |
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You don't have to figure this out alone
Get expert guidance through every step of death administration—from probate to provider notifications—with compassionate AI support available 24/7.
AI probate prep tool
Calculates IHT, validates everything, prepares your application — saves £2,000-5,000 vs solicitor
24/7 AI emotional support
Industry-first companion for guidance and reassurance anytime
Complete contact database
Phone scripts and details for 60+ UK banks, utilities, and providers
Launch pricing • No subscription • All features included
Join families across the UK handling death admin with confidence • Takes 5 minutes to get started
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