Selling a House After Death of Parent in Greater Manchester

Where do you start with selling a house after the death of a parent? Unfortunately, many Greater Manchester residents will find themselves in this situation, and it can be daunting at an already difficult time. However, knowing what happens next can make things a bit easier.

If you have recently inherited your parents’ house in the Oldham, Bury, Royton or Chadderton areas, we have prepared this guide to help you. This is what you need to know about selling a house after the death of a parent, from the probate application to completion, and the tax implications to be aware of.

Selling a house after death of parent

Selling after a death is known as a probate sale, and there’s a certain process you need to follow, with strict timelines to meet. The executor has 12 months to start distributing the deceased’s estate, but only have 6 months to pay the inheritance tax bill. This may make it feel like the pressure’s on, but in our guide, we set out clear steps you can follow.

Selling an inherited house – the process

If you inherit a house, you can sell it once certain conditions have been met. Here’s the process you will follow:

1 Apply for a grant of probate

First, the named executor must apply for probate, which can take around 3 months to receive. You can put a property on the market at any point, but you can’t complete a sale before probate is granted.

2 Get a valuation

You don’t need the grant of probate to seek a valuation, so get the process moving early. Ask for recommendations and research several trusted local estate agents, then review their valuations before making a decision. It’s recommended to consult a charted surveyor who specialises in this process to ensure you aren’t liable for incorrectly valuing the property.

3 Hire a solicitor

Obtain the title deeds from Land Registry to check if there’s a mortgage to pay off, or any restrictions on the property. Engage a solicitor to look at the deeds with you, in case there are any details that need investigation.

4 Agree how to proceed with the sale

Is it better to rent out or sell your inherited house, and how will you approach the sale? Decide your next steps with the other beneficiaries – the inherited property can usually be sold without everyone’s agreement, but it’s usually best to discuss it.

Try to talk openly, avoid friction and keep good records of everyone’s input. This will speed up the process, and hopefully, it will ensure that the matter does not need to go to court.

5 Clear the property

Work with the other beneficiaries to remove personal possessions, but arrange the furniture with care for photography and viewings. This will help prospective buyers to imagine the house as a home.

Before the sale is completed, remove any items that aren’t listed in the will, and which loved ones don’t want to keep. Consider donating these to charity, recycling any that are no longer fit for purpose, or approaching house clearance companies to take them away.

6 Put property up for sale

List the property for sale with your estate agent. Remember, for all the complications that come with selling a house after a death, you can offer the buyer some advantages:

• The property is chain-free
• You are a motivated seller
• It may present the perfect renovation opportunity

If you’re concerned about the emotional aspect of showing prospective buyers around your parents’ home, the estate agent can handle viewings on your behalf.

7 Insure the inherited property

Check that the home is insured by calling the insurance company, and the policy may not cover you if it’s still under the name of the deceased. Explain the situation, and let them know if the property is unoccupied (be aware, this may attract a higher cost).

8 Sell for market value (at least)

Executors are responsible for accepting an offer, and you have a legal obligation to seek market value. Be aware, the other beneficiaries can challenge you in court if the property sells for too low a price.

9 Pay inheritance tax

Beneficiaries have to pay inheritance tax if the estate is worth more than £325,000 – if you have inherited following the death of a parent or grandparent, this rises to £500,000. Inheritance from a couple can be combined, raising the threshold to £1 million.

Inheritance tax will be paid at 40% if the estate is worth up to £2 million. However, if an estate is worth more than £2 million, the threshold is lowered by £1 for every additional £2 value.

When you sell an inherited house, you will have to pay capital gains tax on the increase in value. The full details are provided on gov.uk.

In conclusion

Hopefully our guide has clarified how you can sell an inherited house in Saddleworth, Tameside, Bamford, Milnrow and elsewhere in Greater Manchester. We will also be glad to offer our help. If you wish to discuss the process of selling a house after the death of a parent, contact Cowell Norford.

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