Selling Inherited Property: A Guide for 2025

What to do after inheriting a house 

Inheriting a property can be both a financial opportunity and an emotional challenge. Whether it’s a cherished family home or an unexpected asset, navigating the legal, financial and practical aspects of inheritance can be daunting—especially if you’re unfamiliar with the probate process. Before you decide what to do with your inherited property, it’s important you understand the legalities and potential financial implications. 

This guide will take you through the entire process of selling inherited property, covering everything from probate and legal requirements to tax implications and selling strategies. Whether you’re looking to sell quickly, maximise your property’s value or simply understand your position, this guide will help you make informed decisions with confidence. 

Selling a house you’ve been left in a will may seem daunting at first and can bring with a lot of questions at what is likely already an emotional time. Selling inherited property works similarly to selling property you already own, but the process can be more complex and prone to delays. This is because you have to establish yourself as the legal owner of the property. You have to be granted probate if required, which is the process of administering a deceased person’s estate, which may be contested and may take up to a year.  

Depending on the value of the house, you may also have to navigate inheritance tax. 

Get your inherited property valued for FREE 

Are you named in the will as the new owner? 

Before you can sell inherited property, you need to establish your status as the legal owner. The process for doing so depends on whether or not the deceased wrote a will. 

If the person who died left a will, this should name an executor (or executors) and any beneficiaries (the people who stand to inherit). The executor is the person responsible for ensuring that the wishes of the deceased, as detailed in their will, are carried out. They must also value the deceased’s estate, including any inherited property and calculate the tax due to HMRC. 

If a person dies without a will, they have died “intestate”, which has been detailed towards the beginning of this article. 

Selling a house you’ve been left in a will may seem daunting at first and can bring with a lot of questions at what is likely already an emotional time. Selling inherited property works similarly to selling property you already own, but the process can be more complex and prone to delays. This is because you have to establish yourself as the legal owner of the property. You have to be granted probate if required, which is the process of administering a deceased person’s estate, which may be contested and may take up to a year.  

Depending on the value of the house, you may also have to navigate inheritance tax. 

Get your inherited property valued for FREE 

Are you named in the will as the new owner? 

Before you can sell inherited property, you need to establish your status as the legal owner. The process for doing so depends on whether or not the deceased wrote a will. 

If the person who died left a will, this should name an executor (or executors) and any beneficiaries (the people who stand to inherit). The executor is the person responsible for ensuring that the wishes of the deceased, as detailed in their will, are carried out. They must also value the deceased’s estate, including any inherited property and calculate the tax due to HMRC. 

If a person dies without a will, they have died “intestate”, which has been detailed towards the beginning of this article. 

Probate must be granted to sell inherited property 

What is probate?

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Probate is the legal process of administering a deceased person’s estate (the money and property they leave behind) – any property you inherit is considered to be “probate property”. Probate gives the chosen personal representatives the legal right to manage and distribute the estate. 

You cannot sell an inherited property until probate is granted (if probate is required). 

Do you need to apply for probate?

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Not everyone who sells inherited property needs to apply for probate. If the property was jointly owned at the time of death, it will automatically pass to the surviving owners.  

If there is a mortgage on the property, contact the lender to find out if you need to apply for probate before selling. 

How do you apply for probate?

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If probate is required before you can put the property on the market and the deceased left a will, you will need to apply to the Probate Registry for a “Grant of Probate”. In certain cases, such as if there is no will, the will isn’t valid, there are no named executors, or the executors are unable to fulfil their duty, you will receive “Letters of Administration”.  

Note that the probate process in Scotland and Northern Ireland differs from that in England and Wales. 

What if probate is contested?

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If there is a dispute over the contents of the deceased’s will or how it is administered, this is referred to as “contentious probate”. If this happens, a solicitor representing one of the parties involved may enter a “caveat” to prevent a Grant of Probate from being issued. This gives everyone involved time to state their case and resolve the issues that have arisen. 

A caveat is typically issued when more than one person is entitled to apply for probate, or the validity of the will is called into question; for example, there may be concerns that undue influence was exerted on the deceased to include certain beneficiaries.  

A caveat can only be removed by issuing a warning. The person who entered the caveat must formally state their claim (“an appearance”) on the deceased’s estate within eight days, or the caveat will be removed, and the probate process can resume. If an appearance is entered, only the Court can remove the caveat, but this will only happen when the dispute is resolved. This is why, when probate is contested, and a caveat entered, this can lead to lengthy delays in the settlement of the deceased’s estate. 

How long does probate take?

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It takes between nine and 12 months to obtain the Grant of Probate on average in England and Wales. If the will is complicated or missing, essential documents can’t be found, or there is a disagreement between family members about how they should share the estate, the process will take longer. However, you can start preparing the house for sale as soon as you receive either a Grant of Probate or Letters of Administration. 

Common causes of delay include: 

• Late application for a Grant of Probate — this can take up to three months to arrive from the time the application is received. 

• The executor cannot pay the inheritance tax due — the tax must be paid to HMRC before the Probate Registry will issue the Grant of Probate. 

• An unclear, invalid or incomplete will could lead to family fights that delay the process. 

• The named executor is unable to fulfil their responsibilities. If a named executor has passed away or becomes incapacitated since the will was written or they refuse to undertake the role, another executor must be appointed, which can take time. 

• Named beneficiaries cannot be located — searching for the intended recipients of the deceased’s assets can add considerable delays. 

• The will is complex — if a will requires permissions or documentation from multiple third parties, delays are likely. 

If the probate process takes longer than you were expecting and you’re keen to sell your house as soon as it’s completed, contact us for a free, no-obligation cash quote — we have the funds to buy your house in as little as 7-days!  

How much does probate cost? 

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You will need to pay an upfront fee for probate, but the amount due varies depending on who is applying and how much the deceased’s estate is worth.  

If the estate is worth less than £5,000, there will be no probate fee to pay. If you appoint a probate specialist to guide you through the process, there will be an application fee of £155; going it alone will cost you £215. You will also have to pay £1.50 for each copy of the probate form required, and multiple copies are needed to complete the process. 

There are a number of options for those who choose to pay for professional help with the application process. A fixed fee specialist will calculate the amount payable based on an estimate of how much work will be involved in the application and how long it is likely to take. Many probate specialists and solicitors will charge an hourly rate based on the estate’s value — between 1% and 5% of the estate’s value (+VAT) is typical. Banks also offer probate services, but these are often the most expensive option. 

Managing probate without paying out for specialist help may be tempting, but if the will is complicated or problems arise later in the process, someone acting alone could incur higher costs in the long run due to mistakes and delays. 

Is the sale of inherited property taxable?

How much inheritance tax do you have to pay when inheriting a house?

When do you have to pay inheritance tax?

Will I have to pay Capital Gains Tax on an inherited house?

If the inherited property is worth more than £325,000, you will have to pay inheritance tax. Properties below this value fall in the Nil Rate Band (NRB). Married couples or those in a registered civil partnership are exempt from inheritance tax. 

The higher inheritance tax threshold of £475,000 applies if the deceased left their estate to their children or grandchildren (including adopted, foster and stepchildren) and their total estate was worth less than £2 million.  

A spouse or civil partner can transfer any unused NRB when they die to the surviving partner, potentially doubling the tax-free threshold to £650,000. When the surviving partner dies, their named beneficiaries will be able to take advantage of this higher threshold. This increased NRB is known as Transferable Nil Rate Band (TNRB). If the deceased left their home or a share of it to their children or grandchildren, the tax-free threshold can be further enhanced by adding a Residence Nil Rate Band (RNRB) or “home allowance” on top of the NRB and TNRB.  

The executor of the will is responsible for paying any inheritance tax due. If there is no will, the estate administrator performs this task. The money is usually transferred directly from the deceased’s bank account to HMRC via the Direct Payment Scheme (DPS). But it can also be paid from the proceeds of selling an inherited property. 

Some people choose to rent their property out instead of selling it to avoid paying inheritance tax. However, the rental income from the property will be taxable. 

Inheritance tax will be charged on the value of the property that exceeds the NRB (or the combined total of all eligible nil rate bands). For example, if the NRB is £325,000 and the property you inherit is valued at £500,000, you will pay tax on £175,000. The standard inheritance tax rate is 40%.  

If the deceased left at least 10% of their estate to charity, the rate of inheritance tax may be reduced to 36%. The government website has a handy Inheritance Tax reduced rate calculator that can be used to give an idea of the amount due. 

If your inheritance tax bill is higher than expected, save on the costs of selling your property by cutting out estate agents’ fees, legal fees and the expense of undertaking home improvements by opting for a guaranteed cash sale to House Buyer Bureau. Find out more about what we pay. 

Inheritance tax must be paid by the end of six months after the death occurred. After this, HMRC will start adding interest to the bill. The executor can choose to pay the tax on certain assets over 10 years, but interest will be charged on the balance. And if the asset is sold, the executor must pay off the full amount due.  

If you already own a property that is your full-time residence and sell the inherited property for a profit, you will be liable for capital gains tax on the increase in value since the person’s death. 

You must inform HMRC which is your main home within two years of inheriting. If you fail to do so before you sell one of the properties, they will decide which is your main home (and whether capital gains tax is due).  

How much capital gains tax you pay will depend on: 

• Whether you are a basic, higher or additional rate taxpayer 

• The size of your financial gain 

• Whether the property is residential or commercial 

The tax rate can vary between 10% and 28% and we recommend you seek advice from a legal professional to make sure you understand how much you will be liable to pay. 

Is the sale of inherited property taxable?

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If the inherited property is worth more than £325,000, you will have to pay inheritance tax. Properties below this value fall in the Nil Rate Band (NRB). Married couples or those in a registered civil partnership are exempt from inheritance tax. 

The higher inheritance tax threshold of £475,000 applies if the deceased left their estate to their children or grandchildren (including adopted, foster and stepchildren) and their total estate was worth less than £2 million.  

A spouse or civil partner can transfer any unused NRB when they die to the surviving partner, potentially doubling the tax-free threshold to £650,000. When the surviving partner dies, their named beneficiaries will be able to take advantage of this higher threshold. This increased NRB is known as Transferable Nil Rate Band (TNRB). If the deceased left their home or a share of it to their children or grandchildren, the tax-free threshold can be further enhanced by adding a Residence Nil Rate Band (RNRB) or “home allowance” on top of the NRB and TNRB.  

The executor of the will is responsible for paying any inheritance tax due. If there is no will, the estate administrator performs this task. The money is usually transferred directly from the deceased’s bank account to HMRC via the Direct Payment Scheme (DPS). But it can also be paid from the proceeds of selling an inherited property. 

Some people choose to rent their property out instead of selling it to avoid paying inheritance tax. However, the rental income from the property will be taxable. 

How much inheritance tax do you have to pay when inheriting a house?

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Inheritance tax will be charged on the value of the property that exceeds the NRB (or the combined total of all eligible nil rate bands). For example, if the NRB is £325,000 and the property you inherit is valued at £500,000, you will pay tax on £175,000. The standard inheritance tax rate is 40%.  

If the deceased left at least 10% of their estate to charity, the rate of inheritance tax may be reduced to 36%. The government website has a handy Inheritance Tax reduced rate calculator that can be used to give an idea of the amount due. 

If your inheritance tax bill is higher than expected, save on the costs of selling your property by cutting out estate agents’ fees, legal fees and the expense of undertaking home improvements by opting for a guaranteed cash sale to House Buyer Bureau. Find out more about what we pay. 

When do you have to pay inheritance tax?

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Inheritance tax must be paid by the end of six months after the death occurred. After this, HMRC will start adding interest to the bill. The executor can choose to pay the tax on certain assets over 10 years, but interest will be charged on the balance. And if the asset is sold, the executor must pay off the full amount due.  

Will I have to pay Capital Gains Tax on an inherited house?

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If you already own a property that is your full-time residence and sell the inherited property for a profit, you will be liable for capital gains tax on the increase in value since the person’s death. 

You must inform HMRC which is your main home within two years of inheriting. If you fail to do so before you sell one of the properties, they will decide which is your main home (and whether capital gains tax is due).  

How much capital gains tax you pay will depend on: 

• Whether you are a basic, higher or additional rate taxpayer 

• The size of your financial gain 

• Whether the property is residential or commercial 

The tax rate can vary between 10% and 28% and we recommend you seek advice from a legal professional to make sure you understand how much you will be liable to pay. 

If you inherit a house that you do not wish to live in or cannot use as your main residence, you can either sell the property or rent it out.  

Renting out a second property for profit may seem appealing but being a landlord is not without headaches. It will be your responsibility to find and vet prospective tenants, ensure all necessary paperwork is in order, chase unpaid rent, and respond promptly and effectively to requests for maintenance and repair work. Being a landlord can be an onerous task that many people do not have the time for — especially if they have work and family commitments and the responsibility of running their main home. 

There will also be tax to pay on the rental income you earn and plenty of regulations and legislation to comply with, such as health and safety laws requiring landlords to arrange annual gas safety checks, provide smoke alarms and ensure wiring and electrical appliances are safe.  

While many tenants are law-abiding and responsible, we’ve all heard the stories of “nightmare tenants” who refuse to pay their rent, cause considerable damage to a property, and have to be evicted via a lengthy and expensive court process.  

Many landlords engage the services of property management professionals to handle all of the above. But this will be another expense to add to the list. 

Selling is an attractive option for many people who have neither the time nor the inclination to take on the hassle of renting an inherited property out, and who would benefit from an immediate injection of cash. 

As outlined above, there are no restrictions on selling an inherited property, but the process can be more complex and prone to delays than selling a non-probate property. 

The first step to take when you are notified of your inheritance is to confirm your status as the new owner. This will involve determining if there is a will and applying for probate.  

Next, make sure that the property is secure. It isn’t a good idea to leave a house full of furniture and personal belongings unoccupied for any length of time. Remove any valuables and make sure that windows and doors are locked. Depending on how long the property is likely to sit vacant, installing a few CCTV cameras may be a good idea. 

If a property is unoccupied for long enough, maintenance issues can cause significant damage and expense, e.g. there is also a greater risk of fires and pest infestations. Ensure that the electricity, gas and water supplies are switched off, and that smoke alarms are active. 

The property owner’s death could terminate any insurance that covered the property when they were alive. As soon as possible, contact the insurance provider to inform them of the owner’s death and discuss what this means for insurance purposes. Some lenders will allow the policy to run until it expires, but others may terminate it 30 days after the policyholder’s passing. 

If the property is likely to remain unoccupied after the current insurance policy lapses or for longer than the continuing policy allows — typically 30 days — you must take out “unoccupied home insurance”. This may carry certain responsibilities, such as periodically visiting the property to check it is secure and in a good state of repair. Policies will differ, but all good unoccupied-home insurance should cover fire, flood, storms, theft and attempted theft, vandalism, damage from impact and damage from oil or water. There are some common exclusions to look out for, such as burglary through forced entry, works undertaken by builders and contractors (they should have their own insurance) and damage caused by major renovation work.  

If you fail to inform the insurance provider that the property is empty, your policy could be invalidated, and if you try to make a claim, the provider may refuse to pay out. 

An empty, uncared-for property will be more difficult to sell, so you should engage professional help to speed the probate process along and maintain the property to a good standard if you want a quick sale. You may also need to make some improvements before marketing the property. Check out our guide on How to Add Value to Your Property Before a Sale. 

How to sell an inherited house fast 

1. Find out if there is a will and apply for probate. You need to establish yourself as the legal owner of the property before applying for a Grant of Probate (if there is a will) or Letters of Administration (if the property owner died intestate). 

2. Hire a probate specialist or solicitor. DIY probate is allowed but could lead to mistakes and delays. 

3. Explore your tax obligations. Will you have to pay inheritance tax and/or capital gains tax? 

4. Secure and maintain the property. An empty property is at risk of criminal activity and maintenance issues, which will make it harder to sell. 

5. Take out unoccupied home insurance. If the property will be unoccupied for more than 30 days, this specialist insurance will provide essential cover. 

6. Renovate or sell your house fast. Extensive building works can be time-consuming, expensive and emotionally draining. Selling to a reputable quick house sale company is the fastest way to turn an inherited property into cash. 

Unfortunately, there are some unscrupulous quick house sale companies who will engage in dodgy sales tactics to secure your business, such as tying you into long contracts or making a high cash offer, then dropping the amount immediately before the exchange of contracts.  

Check out our handy guide on how to choose the best quick house sale company for tips on what to look for and what to avoid when searching for reputable property buyers. 

House Buyer Bureau has helped thousands of people sell their properties on a time scale that suits them. We are honest about the way we work and the offers we make. Our team is set up to work entirely remotely, and we can offer completion in as little as 7 days. There are no solicitors, estate agents or surveyor fees to pay. 

If you want to sell your inherited property fast, get in touch! It takes two minutes to complete our short online form. We are proud of our reputation as one of the best house buying companies in the UK. For a fast, hassle-free cash sale, contact our team today.