Inheriting a property in London can be both a valuable asset and a complex responsibility. Whether you’ve inherited the home of a loved one or a distant relative, selling an inherited property involves a variety of legal, financial, and emotional considerations. From navigating probate to understanding tax obligations, it’s essential to approach the process with a clear plan.
This guide will walk you through the steps of selling an inherited property in London, and how Fraser Bond’s expertise can help simplify the process.
Before you can sell an inherited property, you must first go through the legal process of probate, which confirms your legal right to handle the deceased’s estate. Probate gives the executor or administrator the authority to distribute the deceased’s assets, including any property. Here’s how probate works:
If the deceased owned the property solely in their name, you will need to apply for probate before the property can be sold. However, if the property was held in joint ownership, probate may not be necessary as ownership may automatically transfer to the surviving co-owner.
The executor of the will is usually responsible for applying for probate. This involves submitting the will (if one exists), an inheritance tax form, and other documents to the Probate Registry. Once probate is granted, the executor can legally sell the property.
Dealing with probate can be time-consuming and complicated. Fraser Bond can connect you with legal professionals experienced in probate matters to guide you through the process, ensuring all legal steps are correctly followed before the property is put on the market.
Inheritance tax (IHT) is another important consideration when selling an inherited property. In the UK, inheritance tax is levied on estates worth over £325,000. The current IHT rate is 40%, which is applied to any amount above this threshold. However, there are various allowances and reliefs that may reduce the taxable amount.
If the estate's value (including the property) exceeds the threshold, you may need to settle any inheritance tax owed before the property can be sold. If the deceased was your parent or grandparent, the threshold could increase to £500,000 under the main residence allowance.
If you sell the inherited property and its value has increased since the deceased’s passing, you may also be liable for capital gains tax (CGT) on the profit. The rate of CGT for residential property is 18% for basic-rate taxpayers and 28% for higher-rate taxpayers. However, if the property has been your primary residence, you may be eligible for Private Residence Relief, reducing or eliminating your CGT liability.
Fraser Bond works with expert tax advisors who can help you understand your inheritance and capital gains tax obligations. We provide guidance on how to maximize reliefs and allowances, ensuring you minimize tax liabilities when selling the property.
Once probate has been granted and any necessary taxes have been settled, it’s time to prepare the inherited property for sale. Depending on the property’s condition, you may need to make repairs, clear out personal belongings, or consider refurbishment to attract buyers and get the best price.
Inherited homes often come with sentimental value, and clearing out a loved one’s belongings can be an emotional task. Fraser Bond offers property clearance services, ensuring the home is ready for sale without additional stress for you. Additionally, we can arrange for repairs or cosmetic updates that may increase the property’s appeal.
To get an accurate idea of what the property is worth, it’s important to have it professionally valued. Fraser Bond offers free, no-obligation property valuations based on the latest market trends and comparable properties in the area.
First impressions are crucial in property sales. Well-presented homes tend to attract more interest and higher offers. Fraser Bond can provide advice on staging the property or making small improvements to boost its market value.
With the property prepared, the next step is listing it for sale. Selling an inherited property in London can be competitive, so it’s important to choose an estate agent with local expertise and a strong track record. Here’s how Fraser Bond can help:
Fraser Bond will create a comprehensive marketing strategy for your property, including professional photography, detailed descriptions, and online listings across major property portals. Our goal is to maximize exposure and attract serious buyers quickly.
Setting a competitive asking price is key to a successful sale. We combine local market knowledge with data-driven insights to ensure your property is priced to sell while delivering maximum return for you.
Fraser Bond takes care of all property viewings, managing the logistics and ensuring potential buyers are vetted. Once offers are made, we’ll negotiate on your behalf to achieve the best possible price.
Once you’ve accepted an offer, the sale will move towards completion. This involves handling legal paperwork, transferring ownership, and finalizing the financial aspects of the transaction.
Fraser Bond works with trusted solicitors to manage the conveyancing process, ensuring all legal requirements are met and the sale proceeds smoothly. Our team keeps you informed every step of the way, so you understand what to expect.
Once the sale is complete, any proceeds from the property will be distributed according to the deceased’s will or the rules of intestacy (if no will exists). Fraser Bond ensures that the financial side of the sale is handled professionally, so you can focus on moving forward.
Selling an inherited property often comes with emotional challenges, especially if the home belonged to a close family member. It’s important to acknowledge these feelings and take your time with the process. Fraser Bond offers a compassionate approach, providing support and understanding throughout the journey.
Selling an inherited property in London requires careful consideration of legal, financial, and practical aspects. From navigating probate and tax obligations to preparing and marketing the home, each step plays a crucial role in ensuring a successful sale.
At Fraser Bond, we are committed to helping you through every stage of the process, offering expert advice and services tailored to your unique situation. If you’re looking to sell an inherited property in London, contact Fraser Bond today for a free valuation and professional guidance on how to maximize your sale.
