How to sell an inherited property fast for cash

While inheriting a house may be seen as a valuable asset, the process of selling an inherited home can often feel daunting, especially when coupled with the emotional complexities of losing someone. 

Whether you’re looking to sell quickly to access funds, simplify your estate, or avoid the responsibilities of property ownership, understanding the best strategies and options available is invaluable.

Are you looking to sell your inherited property fast? If you’ve acquired a property that’s becoming a financial burden due to ongoing costs, The Property Buying Company is here to help. We can offer to buy your home within just 7 days, covering all associated fees, including costs.

Key takeaways:

• Selling an inherited property can be complicated, but options like cash buyers or hybrid estate agents can speed the sale and reduce the financial burden.

• While selling to a cash buyer might result in a lower sale price, it offers the fastest route to liquidate the asset with minimal hassle, covering all legal fees and avoiding the risk of deals falling through.

• The Property Buying Company can buy your house in as little as 7 days, cover all your fees, and help you move on.

How to sell a house you inherited

Selling an inherited house can be an emotionally charged and complicated process, but with the right guidance, it can also be a manageable and even rewarding experience. Below is our step-by-step guide, we’ll walk you through everything you need to know to navigate the sale of an inherited property:

1. Obtain probate

Probate is the legal process of administering the estate of a deceased person. If your parents left a will, you might need to obtain a Grant of Probate to sell the house. If there’s no will, you may need to apply for Letters of Administration.

You can apply for probate online through the UK government’s website or through a solicitor. The process usually involves filling out forms, providing details of the estate and paying a probate fee.

Usually, obtaining probate takes around 8 to 12 weeks, though this timeframe can extend depending on the estate’s complexity. However, as of August 2024, the UK Government has announced that the average waiting time for a Grant of Probate or Letters of Administration has increased up to 16 weeks. 

In some cases, individuals have reported waiting nearly a year, highlighting potential delays in the process.

2. Value the property

It’s advisable to get at least three house valuations from local estate agents to understand the market value of the property. If the property is older or has potential issues, getting a survey done can help you understand its condition and avoid surprises later.

3. Quick house selling methods

When selling an inherited property, you have three primary options: estate agents, house auctions and property cash buyers. Each option has its benefits depending on your priorities, such as the time frame for selling and the price you wish to achieve.

Estate agents

Estate agents, both online and traditional, are a popular choice for selling inherited properties, especially if maximising the sale price is your main goal. However, this route usually requires patience, as it often takes between 3 and 9 months to complete a house sale. Once the house is sold, you can expect to pay 1% to 3% of the sale price, plus VAT, in estate agent commissions.

For a faster alternative, you might consider using a modern or hybrid estate agent. These estate agents offer a quicker service, often selling homes within 28 days. They also cover your estate agent fees and legal costs related to the sale. However, the trade-off is that you’ll likely achieve 95% to 100% of the property’s market value, rather than a higher return.

House auctions

House auctions provide a faster route to selling, with two main options: traditional and modern auctions, which can take 28 or 56 days, respectively. This option is particularly well-suited for properties that need renovation, as the buyer pool usually consists of investors looking to flip homes.

However, there’s no guarantee that your inherited property will sell on auction day. If it doesn’t, you’ll need to relist it for another 28 to 56 days, and you’ll also be responsible for paying the auction fees.

Property cash buyers

Property cash buyers, such as ourselves, offer one of the quickest and most secure ways to sell your inherited home. You can complete the sale in as little as 28 days, either by selling directly to us or to one of our pre-vetted investors.

We also cover all legal fees associated with the sale, and our in-house team of sales progressors ensures the process stays on track, even if complications arise – common with inherited properties. 

4. Pay your taxes (if necessary)

If the inherited estate is valued above £325,000, you will be required to pay Inheritance Tax (IHT) at a rate of 40% on the portion of the estate that exceeds this threshold. However, there are ways to reduce this rate to 36% on certain assets. This reduced rate applies if 10% or more of the estate is bequeathed to charity in the deceased person’s will.

Calculating the exact amount of Inheritance Tax owed requires careful attention. You can use the online HMRC calculator to estimate your tax liability or consult with an accountant for a more precise assessment.

Additionally, you may be liable for Capital Gains Tax if the property has increased in value since you inherited it and you sell it for a profit. It’s important to pay any Capital Gains Tax due promptly, as HMRC requires Capital Gains Tax returns to be reported within 30 days of the house sale. 

Missing this deadline could result in interest charges and possible penalty notices. To minimise your Capital Gains Tax liability, ensure you have a comprehensive list of all costs incurred during the sale, as these can be deducted from your profits.

You might also need to pay Income Tax if the house generated income, such as through rental payments. If the property was not used to produce income, you can disregard this tax.

Is it better to keep or sell an inherited property?

Inheriting a property can be both a blessing and a burden. While it may seem like an immediate financial gain, the reality of managing an additional property comes with its own set of challenges and responsibilities.

Before deciding whether to sell or keep the property, consider whether it needs any renovations to meet current legal and safety standards. Cosmetic updates like redecoration might be straightforward, but there could be hidden costs, especially if you’re not familiar with the property.

Ensuring the home is safe for occupancy is essential, whether you plan to move in yourself, or rent it out. Hiring a RICS surveyor can help identify necessary improvements and save you time and energy. 

If you intend to move in, it's wise to get an additional survey of the gas and electrical systems to ensure everything is in good working order. If you’re considering renting it out, these checks are mandatory, as you’ll need safety certificates to comply with legal requirements.

Selling an inherited property can often be a more straightforward and financially sound decision than keeping it. Liquidating the asset provides you with immediate cash, especially if you sell via a cash buyer, that can be used to pay off debts, invest in other opportunities or simply improve your financial security.

Additionally, selling the property spares you the ongoing responsibilities of maintenance, potential tenant issues and the risk of unexpected large expenses. The housing market can also be unpredictable, so selling while the market is strong might maximise your returns and save you from future uncertainties. 

Owning an additional property also means taking on the responsibility of regular maintenance and unexpected repairs. Over time, the costs for major repairs, such as replacing a boiler, roof or windows, can be substantial and should be factored into your decision.

How do I transfer ownership of property?

Transferring ownership of a property as part of the inheritance process involves several steps, here is a guide to help you understand the process:

Is settling Inheritance Tax hard?

Settling Inheritance Tax can be particularly challenging when the amount owed exceeds the liquid assets available to the payee. 

In many cases, the bulk of the inherited estate may consist of non-liquid assets such as property, art, or other valuable items that cannot be easily or quickly sold. If the estate does not include enough cash or easily liquidated assets, the payee may struggle to raise the necessary funds to settle the tax bill.

Inheritance Tax typically must be paid before the estate can be distributed to the beneficiaries. This means that even if the estate includes valuable assets, those assets cannot be sold or transferred to beneficiaries until the tax is settled, creating a cash flow problem.

When the tax owed is greater than the available liquid funds, the executor may be forced to sell part of the estate, such as property or investments, to cover the tax bill. This can be a difficult decision, especially if the assets hold sentimental value or if market conditions are unfavourable, leading to potential financial losses.

The Inheritance tax must be paid within six months of the person’s death, or interest will start accruing on the unpaid amount. This creates additional pressure to quickly find a way to settle the tax, which might involve hasty decisions or selling assets below market value.

In some cases, beneficiaries might consider taking out a loan to cover the tax. However, securing cash financing can be complex and costly, especially if the beneficiaries do not have a strong credit history or if the loan terms are unfavourable.

Does probate need to be granted for a house sale?

In most cases, you cannot sell a house before obtaining probate because you don’t have the legal authority to do so. Probate grants you the necessary legal permission to manage and sell the deceased’s property. However, there are a few exceptions:

• If the property is jointly owned with a surviving spouse or partner, they may be able to sell the house without probate.

• If the deceased placed the property in a trust, the trust’s terms may allow the sale without requiring probate.

While you can market the property and even find a buyer before probate is granted, the sale usually cannot be finalised until probate is complete.

How much is probate?

The cost of obtaining probate in the UK can vary considerably depending on the value and complexity of the estate, as well as whether you choose to use a solicitor or handle the process yourself. Here’s a breakdown of the potential costs:

It’s important to note that these costs can add up, particularly for larger or more complicated estates, so it’s advisable to factor them into your financial planning when dealing with probate.

How much does selling an inherited house cost?

Selling an inherited house can incur various costs, which generally fall into two categories: taxes and selling expenses. Understanding these costs is vital to managing your financial expectations and making informed decisions during the process.

Do I have to pay tax on an inherited house If I sell it?

Inheritance Tax

Before you can sell an inherited house, Inheritance Tax must be paid if the estate’s total value exceeds the tax-free threshold of £325,000 (as of 2024), the tax is charged at 40% on the value above this threshold.

Inheritance Tax must be settled before probate is granted, which is necessary before the sale of the property can be completed.

Capital Gains Tax

Capital Gains Tax is due if you sell the inherited property for more than its value at the time of inheritance. The tax is calculated on the profit (the difference between the sale price and the inherited value).

Basic rate taxpayers pay 18% on gains from residential property, while higher or additional rate taxpayers pay 28%. The tax-free allowance for individuals is currently £3,000, and for couples, it’s £6,000. Trusts have a lower allowance of £1,5000.

Capital Gains Tax is payable when the house sale is completed.

What do you have to pay for when selling an inherited property?

Probate solicitor fees

The cost of a probate solicitor can range from £2,000 to £30,000, depending on the complexity of the estate. These fees cover the legal work required to obtain probate and manage the estate’s distribution.

Conveyancing fees

The fees for the conveyancing solicitor who handles the sale can range from £1,000 to £5,000 depending on the factors such as the property’s value, the complexity of the sale and the solicitor’s location.

If possible, you may continue with the solicitor firm who handled the probate, though it’s worth comparing costs to find the best deal for the conveyancing stage.

Estate agent fees

If you choose to sell through a traditional estate agent, expect to pay between 1% and 3% of the sale price, plus VAT. This fee covers the marketing and negotiation services provided by the estate agent.

Online estate agents can be cheaper, usually charging an upfront fee ranging from £300 to £1,999. This can be a more cost-effective option, but it often requires you to be more involved in the sale process.

Both traditional and online estate agents tend to have similar selling timelines, with houses being on the market for 3 to 6 months, and then the conveyancing process after.

Hybrid or modern estate agents, as well as online cash house buyers, offer their services that cover both solicitor and selling fees. These options can save you hundreds or even thousands of pounds. Modern estate agents can sell your home in as little as 28 days, whereas cash house buyers can buy your home in as little as 7 days.

Ongoing property costs

While the property is on the market, you will need to continue paying council tax, utility bills and any maintenance costs. These ongoing expenses should be factored into your budget until the sale is complete.

In total, selling an inherited house can involve substantial costs. Probate and legal fees alone can exceed £10,000 with additional costs depending on your choice of estate agent and the property’s ongoing expenses. 

However by choosing a modern or hybrid estate agent or a property cash buyer that offers to cover your selling fees, you can potentially save a significant amount and maximise the proceeds from your sale. Planning for these costs will help ensure a smoother process and avoid unexpected financial strain.

Are there any hidden fees?

Unfortunately, there are some hidden or unexpected fees when selling an inherited house. Although they are not always applicable, they can come at a surprise, when the process is already so cost-heavy. Here are some potential costs to be aware of:

How much is council tax when selling?

Council tax when selling a property will vary significantly on the local authority, the property’s council tax band and the region. The amount of council tax owed is based on the property’s council tax band, which ranges from A (the lowest) to H (the highest). 

The specific amount varies by local authority, so you’ll need to check with the local council where the property is located to determine the exact rate for the property’s band.

If you’re selling a property on behalf of an owner who’s died, you do not need to pay Council Tax until after you get probated as long as the property remains empty. After probate is granted, you may be able to get a Council Tax exemption for another 6 months if the property is unoccupied and still owned and in the name of the person who died.

If the inherited property is unoccupied you will generally still need to pay council tax, however, some councils may offer a discount or exemption for a limited time, which you will need to check.

If the property remains unoccupied for more than two years, you may be liable for an “empty home premium”, which increases the council tax rate by up to 100% or more, depending on the council’s policy, which is designed to encourage the sale or rental of long-term empty properties.

During the selling process, once probate is granted and if any exemptions expire, you will need to pay the full council tax amount until the property is sold. Council tax is usually billed annually, but you can pay it in monthly instalments.

If the property sells partway through the year, you will only be responsible for the tax up until the sale completion date, and you may be eligible for a refund for any overpaid tax.

How quickly can you sell inherited property?

In 2024, if everything aligns perfectly in your favour, including a straightforward probate process and opting for a cash house buyer, you can expect to sell your inherited house in approximately five months. This timeframe covers the entire process from probate to selling and conveyancing. 

As mentioned earlier in this article, the average time for the probate process currently takes about 16 weeks, or four months, as of September 2024.

The slowest route to selling an inherited property usually involves using a traditional or online estate agent. On average, selling through these channels takes around four months, but it can extend to six months or even a year in some cases.

This extended timeline is due to the steps involved, including listing the property, waiting for offers, negotiating and dealing with potential chain breaks. Additionally, the conveyancing process, which averages about a month, can extend the total process to anywhere between eight months to a worst-case scenario of 17 months.

Despite this, many people still prefer online or traditional estate agents in hopes of achieving full market value. However, an issue often faced with probate properties is that they may not be as well-maintained as other homes. This can lead to a necessary price reduction later on, which might result in a longer sale process, whereas selling through an auction or to a cash buyer could have achieved the same price in a much shorter time frame.

Modern or hybrid estate agents offer a slightly quicker alternative, with the selling process taking around 28 days, or one month, followed by another month for conveyancing. This brings the total selling time to about six months.

Property auctions can be faster still, with traditional auctions typically taking 28 days and modern auctions 56 days. This results in a total selling time of around six to seven months. However, if the property fails to sell at the initial auction, relisting it for the next auction can add another month to the timeline.

For the fastest route to sale, property cash buyers are the best option. They can purchase your house in as little as seven days, with conveyancing often completed on a faster schedule. This can reduce the entire process to just one month, meaning you could potentially sell your inherited home in as little as five months.

Inheriting a house that is paid off

Inheriting a house without a mortgage can feel like both a blessing and a challenge. While the idea of owning a property outright is a dream for many, the circumstances surrounding such an inheritance often carry emotional weight due to the loss of a loved one.

Beyond the emotional aspects, inheriting a mortgage-free property presents a unique set of challenges that can be complex, time-consuming and stressful. 

What to do with an inherited property without a mortgage

When you inherit a property that is free of a mortgage, you might find yourself in a strong financial position, but the journey isn’t always straightforward. The first step in managing your inheritance is ensuring that the legal process, known as probate, is completed. 

Probate involves validating the will, appointing an executor, and distributing assets according to the deceased person’s wishes. This process can take several months to a year, especially if there are complications or disputes.

Once probate is finalised and the property has been transferred to your name, you have several options to consider:

Tax implications of inheriting a property without a mortgage

Inheriting a property without a mortgage can trigger various tax obligations, which are important to understand as they can significantly impact your financial situation:

Selling inherited property with siblings

In an ideal situation, the process of selling an inherited property with siblings would be straightforward. However, differing personal circumstances and viewpoints can lead to disagreements, even among the closest of siblings. 

When multiple siblings inherit a house, it’s common to consider selling the property and dividing the proceeds equally. Alternatively some siblings may suggest renting out the property and sharing the rental income, which can be a practical solution, especially if the house is rented to a family member. This arrangement can reduce costs associated with the selling of an inherited home.

However, reaching a consensus can be challenging, especially when siblings have different financial needs or emotional attachments to the property. Open communication and a willingness to compromise are key to navigating this complex situation.

Can my sibling sell inherited property without my consent?

The short answer is no, your sibling cannot sell the inherited property without your consent if you are a co-owner. In situations where multiple siblings inherit a property, all parties must agree on the decision to sell. One sibling cannot unilaterally force the sale of the property.

If a sibling wants to sell while others wish to keep the house, they may attempt to persuade the others or seek legal action. However, the process is not straightforward. The sibling wishing to sell must present a strong case to the court, often through a solicitor, explaining why the sale is necessary. This process provides the other siblings with an opportunity to dispute the sale and present their arguments for keeping the property.

It’s important to note that while a sibling can theoretically sell their individual share of the property, it is highly unlikely that they would find a buyer interested in purchasing a partial interest, especially if the other co-owners are opposed to the sale.

Can I sell my share of inherited property?

Yes, you can sell your share on an inherited property, but the practicality of doing so is often limited. If you and your siblings own the property as tenants in common, each of you holds a defined share of the property, which you can technically sell. 

However, selling just your share can be challenging because most buyers are not interested in purchasing a fraction of a property, particularly if the other co-owners are unwilling to sell.

If you want to keep the property but your siblings wish to sell, you may need to negotiate a buyout, where you purchase their shares, allowing you to become the sole owner. 

Alternatively, if your siblings are determined to sell, they could seek a court order for the sale of the entire property. This legal route can be lengthy and costly, and the court would consider whether the sale is in the best interest of all parties involved.

If you currently live in the inherited property, the situation becomes even more complex. While you have the right to stay in the house, your siblings also have rights to the property. Resolving these situations often requires negotiation and sometimes legal intervention to reach a fair agreement that considers everyone’s needs and circumstances.

Who can I sell my inherited property to?

When it comes to selling your inherited property, you have several options available, like estate agents, selling privately, cash buyers, and auctions. While estate agents were once the primary way to sell a home, alternative methods have emerged that can offer more efficient processes, particularly for inherited properties.

One of the main challenges with using traditional or online estate agents is the time it takes to complete a house sale, which can range from four months to a year. While these estate agents might help you achieve full market value, the reality is that many inherited properties are in less-than-ideal condition. These homes may require significant repairs or renovations which can lead to price reductions during the selling process.

This extended timeline and potential for a reduced sale price can be problematic, especially if you’re looking to sell your inherited home quickly. If you start with a traditional estate agent and later switch to a different selling method, the valuation may be based on the reduced price rather than the original market value, which could further impact your financial outcome.

Considering these factors, it’s important to explore all available options, including cash buyers, auction houses and selling privately, which may offer quicker sales and more straightforward processes, even if they don’t always achieve full market value:

Is it a good idea to sell inherited property privately?

Selling an inherited property privately involved managing the sale without an estate agent or intermediary. You are responsible for marketing the property, arranging viewings, negotiating with buyers and handling all the legal paperwork. This can be done through online platforms like Gumtree, social media marketplaces, local advertising or by contacting potential buyers directly.

Pros

• Cost savings: You avoid paying estate agent fees.

• Control: You have full control over the sale price, including pricing, negotiation and timelines.

• Flexibility: You can manage viewings and negotiations according to your schedule.

Cons

• Time consuming: Managing the sale can be very time-consuming, especially if you are not experienced in property transactions.

• Limited reach: Without an estate agent’s network, your property may not reach as many potential buyers.

• Legal complexity: Handling the legal aspects of the sale without professional help can be risky and complicated.

Should I sell an inherited house at auction?

To sell an inherited house at auction, you list the property with an auction house. The property is marketed through the auctioneer’s channels, and potential buyers bid on the property at the auction event. The highest bid at the auction usually secures the sale.

Pros

• Quick sale: Auctions can result in a fast sale, often within a few weeks.

• Competitive bidding: The auction process can drive up the price if there is significant interest.

• Certainty: Once the hammer falls, the sale is legally binding and the buyer must complete the purchase within a specified time.

Cons

• Risk of low price: There’s a risk that the property could sell for less than its market value if bidding is not competitive.

• Auction fees: Auction houses charge fees, which can reduce your net proceeds.

• Lack of control: You have less control over the final sale price, and the sale is subject to the conditions of the auction.

Pros and cons of selling an inherited house with an online estate agent

Selling with an online estate agent involves listing your property on various property portals (Rightmove and Zoopla) through an online estate agency service. These estate agents usually charge a fixed fee upfront or on completion, and you handle most of the process yourself, including viewings.

Pros

• Lower fees: Online estate agents are usually cheaper than traditional estate agents.

• Wider exposure: Your property gets listed on major property portals, reaching a large audience.

• Flexible packages: You can often choose from a range of services, depending on how much involvement you want.

Cons

• Less personal service: Online estate agents usually offer less personalised service compared to traditional estate agents.

• Limited support: You may receive limited help with negotiations and legal paperwork.

• Upfront costs: Some online estate agents require payment upfront, regardless of whether the property sells.

Selling inherited home with hybrid estate agents

Hybrid, or modern estate agents combine the services of traditional and online estate agents. They usually offer lower fees than traditional estate agents and provide a mix of online tools and personal support. 

Pros

• Cost effective: Hybrid estate agents usually cover the selling and legal fees for their sellers.

• Support and flexibility: They will provide you with a traditional estate agency amount of support while tailoring the process to you.

• Wide exposure: Your home will be listed on the major online property portals, increasing its visibility.

Cons

• Service variation: The quality of service can vary significantly between brands.

• No physical office: Unlike traditional estate agents there isn’t a local branch you can visit and talk to the agents in person.

• Full market value unlikely: Due to the hybrid business model, you are unlikely to receive full market value as the buyer pays your fees.

Can I sell my inherited home to a cash home buyer?

Selling to a cash house buyer involves selling your home directly to a company or individual who offers to buy it quickly for cash. These buyers usually offer a below market value price in exchange for a quick and guaranteed sale.

Pros

• Speed: This method often results in a very fast sale, sometimes within days.

• Certainty: The sale is guaranteed, with no risk of the deal falling through.

• Convenience: You avoid the hassle of viewings, negotiations, and repairs, as cash buyers often purchase properties “as-is.”

Cons:

• Below Market Value: You will likely receive less than the property's market value, as cash buyers seek a discount.

• Potential for scams: There is a risk of encountering unscrupulous buyers, so due diligence is important.

• Less control: You have little room for negotiation on price, as cash buyers usually present a “take it or leave it” offer.

Sell your inherited property fast for cash!

Selling a house for cash, especially an inherited property, offers many advantages, particularly if you need to sell quickly and with minimal hassle.

Selling to a cash buyer is one of the fastest ways to sell a property. The process can often be completed in as little as seven days, which is much quicker than the months it might take to sell through traditional estate agents or auctions. This speed is particularly beneficial if you need immediate funds or want to avoid the prolonged stress of a drawn-out sale.

Cash sales reduce the risk of deals falling through, which can happen with open market sales if the buyer’s financing is delayed or denied. Cash buyers usually have the funds readily available, ensuring that once an offer is made and accepted, the sale is almost guaranteed.

Selling a property for cash often involves fewer complications. Cash buyers usually buy properties as-is, meaning you won’t need to invest time and money into repairs, maintenance or home staging. This is especially advantageous if the inherited property is in poor condition or if you are dealing with emotional stress from the inheritance.

While you might receive slightly less than the market value, selling for cash can save you money on estate agent fees, legal costs and ongoing maintenance expenses. Additionally, many cash buyers cover all legal fees and other costs, which can reduce the financial burden associated with selling a property. 

If you want to explore selling your inherited home to a cash buyer, why not choose The Property Buying Company? We are one of the largest cash buyers in the industry, and we are the UK’s most rated. 

We can buy your home in as little as 28 days, which is ideal for sellers who need access to funds quickly after the already long probate process. 

Unlike selling through an estate agent, where chains can break, and deals fall through, we offer a secure, cash based transaction. This means once we agree on a price, the sale is almost certain to go through, giving you peace of mind.

Not only this, but we will cover all the aspects of selling your home, including your legal fees. This means that when you agree to sell your home with us, you won’t have to pay a penny for your conveyancing costs related to the house sale.

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