While welcoming in the New Year, you may unfortunately have found yourself with a probate property on your Hands. To reduce stress and to help you through this difficult time, we have put together a short guide on how you can sell a probate property.
Definition of terms
In the UK Probate is the description used to define the financial processes and legalities of dealing with the assets of someone who has died. The law in England and Wales requires that in some instances, a next of kin or executor apply for probate before they can sell or distribute any assets belonging to the deceased.
Selling a probate property is therefore the process of putting a deceased person’s property on the market, be it a loved one or on behalf of a client. The probate process is a fairly complicated exercise that involves a lot of legal, financial, and tax work. With that in mind, see below for what is required in our guide to selling probate property below:
When is Probate required and what is involved?
As mentioned above, in England and Wales Probate is required when the owner of the property being sold is deceased. In addition, banks and other financial institutions may place a limit on the amount above which probate will be required in what is called a Grant of Representation.
The probate process involves several complex processes so it is recommended that sellers seek professional advice from specialists in the sector such as the Open Property Group among others. In general the process of getting a probate property to market can be broken down into the following five phases:
- Identifying the deceased assets and liabilities to get a clear picture of the value of their estate. If the deceased has not left a will then the law will determine the recipients of the proceeds from the estate.
- The second phase involves paying of any debts owed as well as the inheritance tax due to HMRC. At this stage the executor of the estate will also need to apply to the Probate Registry in order to be given the Grant of Representation, which is the legal authority to administer the estate.
- Once the authority has been granted, an estate’s executor can proceed to sell the property and it is at this stage that a probate house can now be put on the market.
- Phases four and five involve collating the deceased’s estate accounts, in order to pay any outstanding liabilities or taxes and find out the balance that will be distributed to the estates’ beneficiaries.
- If no challenges are registered on the estate, then the proceeds will finally be able to be distributed.
Can I Sell before Probate is Granted?
If you are selling a Probate property you may be looking to achieve a quick sale due to a number of reasons, but unfortunately if the house owner is deceased then it cannot be sold until authority is granted. In the case of a house that is jointly owned where one of the people named as an owner are still alive such a property can be sold before probate is granted.
In practise, however, the process of selling a probate property can be started while the application for a grant is underway provided there is a will naming an executor. In the absence of a will a seller may have to wait for the actual letters of administration are granted.
In conclusion, it is also worth seeking specialists in selling a Probate property as they will be able to guide you through the processes involved. The cost of selling a probate property should be no different to a normal house sale and there should be no hidden charges as long as sellers deal with reputable providers such as the Open Property Group.
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