What documents are needed to sell inheritance property online?
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As we’re sure you have gathered, selling an inherited property involves several steps, and having the right documents is essential to navigate probate smoothly. Unlike a straightforward house sale, selling an inherited home requires additional steps, which can be made easier when you sell online.
Property documentation throughout the process is crucial to establish ownership, confirm compliance with Inheritance or Capital Gains Tax regulations and ensure a seamless transaction with potential buyers.
On this page, we will provide an in-depth overview at each document you’ll need to facilitate a smooth, legally compliant sale of an inherited property online.
What does an executor need to sell inherited property?
When selling an inherited property, there are specific Inheritance Tax documents that may be required, especially if the estate’s value exceeds the Inheritance Tax threshold.
These documents confirm that any due Inheritance Tax has been calculated and paid, ensuring they house sale complies with HM Revenue and Customers regulations, here are the key documents involved:
IHT400 - Inheritance Tax account
The IHT400 form is essential when the estate’s value surpasses the Inheritance Tax threshold (currently £325,000 in the UK) This form provides a detailed account of the deceased’s assets, including property, savings, and other valuables, to establish the estate’s total value.
The information submitted helps HMRC determine if Inheritance Tax is due and, if so, how much. Completing the IHT400 accurately is important, as mistakes could lead to delays in processing or even fines. Executors often work with a solicitor or tax advisor to ensure this form is correctly completed.
IHT405 - Property details
The IHT405 form is a supplementary document that provides detailed information about any houses, land or buildings that were part of the deceased’s estate. This form includes information on property valuations and any jointly owned properties.
By submitting the IHT405 with the IHT400, executors can give HMRC a full picture of the estate’s property holdings, which is particularly important if the house’s value has increased since the date of inheritance.
IHT - Claim for loss on sale relief
If the inherited property is sold at a loss within four years of the date of death, executors can claim relief for this loss using the IHT38 form. This form allows you to reduce the overall Inheritance Tax bill by offsetting the loss, which can be particularly useful if house prices have decreased since the date of death.
To qualify, the property must be sold at a price lower than its original value at inheritance, and the IHT38 form must be completed and submitted to HMRC. Claiming this relief can lead to tax savings for the estate, benefiting the beneficiaries.
IHT421 - Inheritance Tax clearance
The IHT421 form, also known as the “clearance certificate,” confirms that any due Inheritance Tax has been paid. Once HMRC processes the IHT400 and other relevant forms and verifies payment, they will issue this certificate, which effectively clears the house for sale.
This clearance provides peace of mind for buyers as it confirms there are no outstanding tax liabilities tied to the property. For executors obtaining this clearance is essential to move forward confidently with the sale, ensuring full compliance with Inheritance Tax obligations.
What documents are needed to begin the probate selling process?
One of the primary legal steps in selling an inherited property is obtaining the right to manage and sell the estate, a process that usually involves probate. Probate is the legal procedure that grants an individual the authority to handle the deceased’s assets, including property, and is necessary in most cases before the house can be sold.
In order to start the selling process, there are several probate documents needed to establish ownership over the property:
Identification
All executors or administrators involved in the sale need to provide valid photo identification, such as a passport or driving licence, along with proof of address (e.g. a recent utility bill or bank statement). This is essential for verifying the identity of those responsible for the estate and completing the property transaction securely.
Grant of Probate or Letters of Administration
These documents authorise you to manage and sell the deceased’s estate. If there is a will, you’ll need to apply for a Grant of Probate using form PA1P. If there is no will, Letters of Administration are required, and you’ll use form PA1A for the application.
Both documents establish your legal right to handle the property’s sale, and the process can take weeks to months, so it’s best to apply as early as possible.
Death Certificate
A certified copy of the death certificate is a key document when selling an inherited property, as it legally confirms the passing of the home owner. This document is often the starting point for the probate process and is required by various parties involved in handling the estate such as probate courts, solicitors, banks and mortgage companies.
In the context of selling an inherited property, the death certificate provides official proof that the home owner has passed away, allowing the executor or administrator to proceed with the necessary legal and financial steps.
This document is required to apply for probate, which grants authority to manage and transfer the deceased’s assets, including property. Typically, you’ll need multiple certified copies of the death certificate, as it’s often required by multiple institutions during the settlement process. For instance, if there is an existing mortgage, the mortgage provider will need to see a death certificate both discussing settlement terms or releasing funds.
Title Deeds
Title Deeds are fundamental documents in the sale of inherited property as they establish legal ownership and provide a historical record of property transactions. These documents are essential for both registered and unregistered properties but differ slightly depending on registration status:
Registered properties:
For properties registered with the HM Land Registry, you can obtain the Title Register and Title Plan. The Title Register confirms the legal ownership of the property, listing details about the current owner (in this case, the deceased) and any rights, restrictions or liabilities associated with the property, such as mortgages or easements.
The Title Plan is essentially a map showing the boundaries and layout of the property, which is particularly useful for confirming the property’s extent and ensuring no boundary disputes arise. Accessing these documents is relatively straightforward, as they’re stored digitally with the Land Registry, making it easier to transfer ownership during the house sale.
Unregistered properties:
For properties not yet registered with the HM Land Registry, you’ll need the original Title Deeds. These may include a collection of historical documents showing a record of ownership changes, property boundaries and any legal rights associated with the property, such as access rights.
These documents might be held by a solicitor, a bank, or in a secure location if the deceased kept them personally. For unregistered properties, the original Title Deeds are vital to proving ownership, as there is no central digital record.
Title Deeds serve as proof of ownership and clear any doubts about legal rights over the property. When selling inherited property, they are critical not only for legal compliance, but also for providing transparency and security to potential buyers.
What other selling documents do you need?
In addition to the specific documents required for selling an inherited property, you’ll also need the standard paperwork associated with any house sale. These include documents related to general house sale procedures, as well as Capital Gains Tax records, property valuation reports and insurance documentation.
If the property was a tenanted property, then you will also need the correct landlord documents.
Here are a few additional documents you may need to ensure a smooth sale:
Property Information Form (TA6)
The TA6 Property Information Form is a comprehensive document that provides essential details about the property being sold. This form is important in disclosing information to potential buyers, ensuring they have a clear understanding of the property’s characteristics and any issues that may affect their decision to purchase:
Boundaries:
Details about property boundaries, including responsibility for boundary maintenance, are important to avoid any future disputes with neighbouring properties.
Disputes and complaints:
Any existing or historical disputes with neighbours or local authorities must be disclosed, giving potential buyers a complete view of the property’s neighbourhood.
Utilities and services:
This form covers the availability of essential services, such as gas, electricity, water and drainage, as well as whether the property is connected to public or private systems.
Environmental matters:
Information on any environmental factors that might impact the property, such as flood risks or nearby mining activities, must be included.
Planning and building control:
If any building work or alterations have been carried out, details about planning permissions and building regulation approvals need to be included to reassure buyers of the property’s compliance with legal standards.
Known defects:
This section allows you to disclose any known issues, such as structural issues, damp, or roof problems, ensuring transparency and protecting you from potential legal action post-sale.
Fittings and Contents Form (TA10)
The TA10 Fittings and Contents Form specifies what fixtures, fittings and contents are included in the sale, making it clear to the buyer what will remain the property after the sale is completed. This can be particularly useful for executors to off load pre-existing furniture in the inherited house to the new buyer:
Kitchen appliances:
Details on whether items like the oven, refrigerator or dishwasher are included, giving buyers clarity on what they’ll need to replace or bring with them.
Light fixtures:
Information on whether built-in lighting, like chandeliers or recessed lighting, will stay with the property, with preventing any disputes over included fittings.
Window treatments:
The TA10 form specifies if curtains, blinds or shutters are included, ensuring buyers know what to expect in each room.
Garden items:
This can include items like garden sheds, outdoor furniture or even plants. Buyers are often concerned with outdoor items, so specifying these helps manage expectations.
Built in or freestanding furniture:
The form should clarify if any built in furniture or large freestanding items, such as wardrobes, are part of the sale.
Energy Performance Certificate (EPC)
An Energy Performance Certificate is legally required when selling any property in the UK. The EPC provides buyers with critical information about the property’s energy efficiency, grading it on a scale from A (most efficient) to G (lease efficient). This document not only gives insight into the energy costs associated with the property but also highlights potential areas for improvement:
Assessing efficiency: An EPC report evaluated the efficiency of heating, hot water, lighting and insulation, giving buyers a clear understanding of the property’s ongoing energy costs and environmental impact.
Recommendations for improvement: The EPC includes tailored suggestions for energy-saving improvements, such as installing double glazing or upgrading insulation. While not mandatory, these recommendations can help buyers estimate future improvements costs and may even add value to the property.
Renewing an EPC: If the inherited property doesn’t have a recent Energy Performance Certificate (within the last 10 years), you will need to commission one from an accredited energy assessor. The report generated provides transparency, as well as reassurance for buyers, especially those who prioritise energy efficiency.
The EPC not only helps fulfil legal requirements but also enhances the house’s appeal by offering buyers a detailed view of its energy profile, making it easier for them to make an informed decision.
Mortgage details
If the inherited property has an outstanding mortgage, it’s important to provide clear details about this financial obligation. The mortgage details section should include:
Recent mortgage statements: These show the balance owed, any interest rates, and payment history. Buyers need to understand if there’s an existing mortgage that might impact the property’s status.
Settlement figure: This is the amount required to fully pay off the mortgage on the property. Mortgage providers usually supply this figure, and it is crucial for coordinating the payoff if the sale proceeds are intended to clear the mortgage debts.
Contact details of the mortgage lender: Providing the contact information for the mortgage provider ensures the buyer (and potentially their solicitor) can verify details as necessary.
What’s the best way for an executor to sell a probate property?
As an executor of a will, your goal is to manage the estate efficiently and in the best interests of the beneficiaries. When it comes to selling a probate property, there are several options, each with its advantages. Traditional estate agents, property auctions, and direct sales to cash buyers are all viable routes, but each varies in terms of speed, certainty and complexity.
Using an estate agent
Working with an estate agent is the most traditional route for selling any property, including probate properties. Estate agents can provide a full service experience, from valuation to marketing, negotiations and handling offers. They can help secure a buyer willing to pay the best possible price by showcasing the property to a wide audience. However, estate agents can sometimes take months to secure a sale, especially if the property requires repairs or updates.
Additionally, if the buyer relies on a mortgage, the process can face delays due to mortgage approvals, valuations and other requirements or executors managing a probate sale, this lengthy timeline can mean prolonged responsibility and potential added costs, such as insurance and property maintenance, until the sale is completed.
Selling through a property auction
Property auctions offer a faster route than estate agents and can be particularly useful for selling properties that may need renovations or are difficult to value accurately. Auctions have a set date, and once a winning bid is placed, the sale is usually completed within a month, providing some level of certainty on timing. However, auctions can be unpredictable, and there’s a risk of the property selling for less than expected, especially if the market is uncertain.
While auctions offer more speed than traditional sales, they also come with fees and may require a reserve price to avoid underselling. For executors, auctions can be an option, but they may not guarantee the optimal balance of speed and security needed for a straightforward sale.
Selling to a cash buyer
Selling directly to a cash buyer can be the most efficient and secure way for an executor to sell a probate property. Cash buyers have funds readily available, which means they don’t rely on mortgage approvals, eliminating one of the most common sources of delays. This direct approach often leads to a quicker sale, with many cash buyers able to complete the process within a matter of weeks.
The speed and certainty provided by cash buyers can greatly benefit executors managing an estate, as it reduces ongoing costs for insurance, maintenance and utilities. Cash buyers also often buy properties as is, which means the executor doesn’t have to worry about preparing or upgrading the property to attract traditional buyers. It also means, that if you are trying to sell from abroad, then we can help facilitate the sale.
Here at The Property Buying Company, we specialise in buying probate properties, and understand the unique legal and administrative requirements. We have a panel of solicitors who operate across the country who work on tight deadlines to ensure your property case is looked after at every stage.
We will also cover all your legal and selling costs for using our service, which means that although you will have paid for your solicitor during probate, you won't face any further legal fees or estate agent commission.
Not only this, but we can also facilitate fast house sales, helping most properties complete in two or three weeks, although we can sell in as little as 7 days.
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