Selling an inherited property in Leeds

Leeds is a vibrant place to live as a base for young professionals, job opportunities and the joy of city life. If you’ve inherited a property in Leeds and have no desire to live in it or rent it out, selling is a solid option. As a prosperous area with plenty of attractions and benefits, it’s promising to sell an inherited property in Leeds. 

If you’ve recently inherited a house in Leeds and are unsure of your options, here’s our guide to selling inherited property in Leeds. 

Taxes to pay on an inherited property in Leeds 

Inheriting a property may be a great asset to your financial circumstances, yet it can involve costs to gain that home. An inherited property can mean acquiring assets in a will or gifting a property to a spouse or civil partner. 

In terms of tax, the most important to be aware of is the Inheritance Tax. Inheritance Tax currently stands at 40% for properties valued over £325,000 and is due six months after the previous owner's death. You pay the tax amount measured from the date you acquired the property. 

Various allowances can reduce or eliminate the Inheritance Tax. For example, if you inherit the property from your spouse or civil partner, you can claim an additional £175,000 allowance. Then, you only have to pay Inheritance Tax if the property is worth £500,000 or more. The best way to know where you stand is to speak with a financial advisor and understand your options. 

Capital Gains Tax is another consideration and doesn’t need to be paid on the property before the person (owner) dies. However, if the property sells during probate and the value increases since the previous owner dies, there is usually a Capital Gains Tax to pay. The calculation of tax is dependent on the value increase. Generally, beneficiaries inherit the property and other assets at probate value, and when they sell that property, the tax amount is calculated and paid. 

You can avoid paying Capital Gains Tax on inherited properties if you decide to make it your primary residence and choose not to rent it out to tenants or a lodger. Alternatively, the other method is to sell the home as quickly as possible when inherited to reduce the likeliness of increasing the property’s value. 

The process of selling an inherited property 

When selling house I inherited in Leeds, you should choose the best route suitable for your circumstances, whether it’s traditionally with an estate agent, auction or through an online property buyer like us.  

The probate process  

The probate process is the legality of organising the inherited estate of a person who has passed. An estate includes all assets, such as property, money, investments and personal possessions. 

If you expect to inherit the property, you must apply for probate unless you have joint ownership of the estate with your spouse/civil partner or a joint bank account. Other points include that you have no shares within the estate or the sum of money inherited is less than £5,000. Speaking to a financial advisor can help navigate the probate process and ensure you gain what’s legally yours. 

Estate agents 

The traditional route to sell an inherited property in Leeds is through an estate agent. This course means working with the estate agent to help you through the long process, from valuing the property and putting it on the market to selling to a new buyer. With estate agents being with you every step of the way, it can incur many costs, such as surveying and valuing your property. Although estate agents have your best intentions at heart, sales can fall through if there is a break in the property chain.  

Auctions 

Another method of selling your inherited property in Leeds is via an auction. This process has a similar timeline as an estate agent, and you may pay fees, depending on the auction house. Before you auction the home, you must prepare the property for sale, including making it ready for property viewing. You’ll need to decide on the reserve price, which is the lowest price to sell the property, and then those at the auction house can increase, finding a price suitable for potential buyers. Ideally, you want to price to cover any outstanding mortgage and align with the current property market. 

Online property buyer  

If you’re trying to sell the property as quickly as possible to reduce the chance of Capital Gains Tax or because it suits your circumstance, we are home cash buyers in Leeds.If you are asking yourself “i inherited a house in leeds and am unsure where to sell” we can help.  We make the process of selling your property easy with an online tool. This tool allows you to fill in all your property details and answer questions, including the property size, contact information and location. We use everything you provide and our local data to analyse your property accurately. 

We’ll contact you within 24 hours and give you a free-no-obligation cash offer based on local data and present market conditions. When you accept the offer, we’ll send one of our regional managers to inspect the property and see if it matches our expectations. If everything looks how it should, our experts formalise the offer, and the sale goes through swiftly. We cover all the legal fees, arrange the valuation and make the process as hassle-free as possible. 

Issues involved with selling an inherited property in Leeds 

Inheriting a property can be a difficult time, especially when dealing with grief. If you choose to sell, some issues may arise, including multiple owners, the costs involved, and the decision of the best-selling route. 

It isn't uncommon for inherited properties to have multiple beneficiaries, which can sometimes cause issues if not all parties agree to sell. Inheritance can be an emotional experience which affects what to do with the property, especially as many people have a sentimental value attached to the previous owner. That emotional attachment can make the process challenging as it could feel like you’re letting a part of that person go. Speaking with a financial advisor can help guide you through this period, providing expert knowledge on your options and ensuring all beneficiaries agree. 

As we’ve mentioned previously, there are plenty of costs involved with inheriting a property, such as Inheritance Tax, Capital Gains Tax and covering the costs of any debts by the previous owner. Selling the property can help cover the costs, and financial guidance can determine how to do this effectively.  

If you’re at a loss with what to do when selling your property, it can cause you to leave the property to deter and become neglected over time, and before you know it, make the home unsellable. Deciding to go down one of the selling routes means picking what’s suitable for you. If you want the process completed quickly, selling to an online property buyer is fundamental. However, if you want to be there every step of the way, learning about potential new homeowners, then working with an estate agent may be the way for you. 

Other considerations when selling an inherited property  

When inheriting a property, it doesn’t necessarily always mean financial gain. If the deceased hasn’t paid off the mortgage or has any loans associated with the property, you must contact the lenders as soon as possible to explain the circumstances. The lender will give you options to pay off this debt, either continuing regular payments or offering a payment holiday. The ‘payment holiday’ allows you time to decide how to pay the loan. 

If you’re considering the move to Leeds and looking to sell your inherited property, we buy property for cash. As expert cash buyers with an excellent rating, we provide a quick property sale experience and handle the process from start to completion, including solicitor costs.  

We offer the flexibility to choose a completion date with a minimum of 7 days, absolutely free and hassle-free. Contact our team today and learn how we can help sell your property.