Your relative has recently died. Upon their death, you inherited some property that they had owned in Yorkshire. The property is great — a nice detached cottage, perfect for a summer holiday — but you already own some lovely property in South London, where you reside full time.
What should you do?
Many people who inherit property after purchasing their own may choose to sell. If you’re looking to sell your property after an inheritance, here’s a guide to expenses to consider and steps to take to sell the property you’ve acquired.
Expenses to Consider
Upon inheriting property, you may need to deal with a number of expenses related to the property you’ve acquired, including taxes, home insurance and mortgages.
- Taxes: Depending on the value of the property you’ve been left, you may be subject to the Inheritance Tax (IHT). Generally speaking, IHT is not charged on the first £325,000 of the estate. However, you should always talk to a trusted accountant or legal professional when determining what taxes may be owed on the property you inherit.
- Home Insurance: Depending on how long — or even if — you will live in the property, you may need to purchase home insurance. Unoccupied insurance should be purchased if the home will be unoccupied for more than 30 days.
- Mortgages: If mortgage payments remain on the property after you’ve inherited it, you may be responsible for paying them.
Steps to Selling Your Inherited Property
Once you have considered and handled the taxes, insurance and mortgage expenses, you are now ready to sell your inherited property.To sell the property, you will:
- Complete the probate. The ‘probate’ is the process by which you deal with the legal and financial aspects of acquiring your inherited property. It usually takes between six and 12 months to complete the probate process, where you’ll handle resolving all claims and finances of the deceased. For more on the probate process in the UK, see this article from the Gov.uk website.
- Choose the method of sale. Once the probate is complete, you are ready to sell your inherited property. You have two sales choices when selling the property:
- Buying companies: You can sell your acquired property to a property buying company, who will in turn resale it for a profit. The sale will be quick. However, you will not receive the full market value of the property — only a small percentage.
- An estate agent: You can hire the services of an estate agent. This method makes the home sale process a bit longer, but you’ll receive the full value of your home.
Ready to sell?
Doorsteps offer some of the best online estate agents the UK has to offer, and we provide sellers with some of the cheapest estate agent fees around. If you’re ready to sell your inherited property, contact us today.