Selling an Inherited Property in Rochdale & Manchester

If you’ve inherited a property in Rochdale – most likely after the death of a parent – there’s a lot to think about at a difficult time. 

If you do decide to sell, the average price of a Rochdale property is just over £223,000 according to Rightmove, up by 11% on the 2022 peak. Average house prices reached almost £245,000 in Littleborough, around £255,000 in Bury, and Saddleworth house prices rose 7% in the past year to just under £340,000. From applying for probate to staging the home for buyers, we look at the stages involved in selling an inherited property in the UK. 

How do I sell an inherited house? 

1. Consult the will 

The first thing you need to do when making decisions about the estate of someone who has died is to find their will. This set outs the name of the executor – the person with the task of making sure the last wishes are carried out – along with the people who will benefit from the estate. 

This will tell you whether you have inherited the property either alone or with others and whether you are entitled to sell it. If the person has not made a will, they are said to have died intestate and their property will pass to close relatives based on the rules of intestacy. 

2. Apply for probate 

Applying for probate means seeking the legal right to deal with someone’s estate. You can do it yourself using the gov.uk website or you can appoint a solicitor. The cost of applying for probate yourself is currently £300. 

You won’t usually have to apply for probate if the estate is worth under £,5000, or you and your spouse or family member were joint legal owners of their assets. Instead, you will transfer these to your sole ownership. 

3. Get a valuation for probate purposes 

To apply for probate where a property is involved, you need a valuation for probate for HMRC to calculate the inheritance tax bill. A ‘market appraisal for probate’ determines the property’s open market value on the date when the owner passed away. It can be carried out by a local estate agent or chartered surveyor – we recommended getting three estate agent valuations. 

3. Pay the inheritance tax 

Inheritance tax, at a rate of 40%, must be paid on estates of more than £500,000 where the deceased person’s main residence is left to their children or grandchildren. There is no inheritance tax to pay on property left to a spouse or civil partner. If you are not the child, spouse or civil partner of the person who has died, this threshold is £325,000. 

The estate includes all assets such as savings, death benefits, jewellery, furniture and cars. Read more about inheritance tax on the gov.uk website. 

4. Get the property ready for sale 

This is a difficult task, but you’ll need to remove all belongings either yourself or by using a house clearance company. You may need to renovate the property depend on how dated it looks, your budget and current market conditions. It is worth taking advice from a local agent. At least consider, removing worn carpets and old fittings and repainting in a neutral shade, as well as tidying up the garden and exterior. 

4. Choose how to sell inherited property 

When selling an inherited property, your priorities will depend on family circumstances, but there are some broad pros and cons to each route. House buying companies are fast and chain-free but generally offer 80% of the market value. Auctions typically realise around 90% of the property’s value, though you can set a reserve price.  Selling with a high street agent can take around 3 months, but a good agent will know the local market and aim for the best possible selling price – explore the reasons houses don’t sell and guard against these carefully.

Frequently asked questions 

Can I sell an inherited house before probate? 

While you can’t exchange contracts on the home until probate has been granted, you can put the property on the market if you are the beneficiary of the will. But you should make the situation clear to prospective buyers. 

How long does it take to sell inherited property? 

According to the gov.uk website the average time it takes for probate to be granted in the UK is 16 weeks but it can take longer if the person’s affairs are complex or if probate is contested. 

In Rochdale properties are currently taking an average of three to four months to find a buyer according to the home.co.uk website. 

How much does it cost to sell inherited property? 

If you decide to sell, you’ll need to consider the normal expenses of a house sale such as estate agent and conveyancing fees, as well as probate process costs starting with the £300 application fee via gov.uk.  

You will be liable for utility bills, council tax (though your local authority may offer a discount), and insurance cover for an empty home. Depending on the condition of the property, there may be the cost of renovating the home for sale or repainting, and furniture removals or house clearance company fees.  

What taxes do I pay when selling an inherited property? 

The standard inheritance tax is rate is 40%, and it must be paid on estates above the inheritance tax threshold of £325,000 – increasing to £500,000 if the estate comprises property left to the deceased person’s children or grandchildren. There is no inheritance tax to pay if left to a spouse or civil partner. You must pay inheritance tax owed within six months of the person’s death. 

If you are selling an inherited property in the future, you may need to pay capital gains tax (CGT) on the rise in value of the home. Certain costs can be offset against CGT and there is currently a tax-free allowance. You may not need to pay the tax if you live in the property as your main residence. 

You won’t have to pay income tax on the property unless you decide to keep it and rent it out. 

What if I want to sell the property, but my siblings don’t? 

It’s important for siblings to agree together whether to sell the house or keep it for their own use or to rent out. If they can’t agree, the situation can become complex and difficult. If one sibling wishes to keep the property, they will need to buy the others out. Otherwise, it is sometimes possible to force a sale by getting a county court judgement. In this situation get legal advice. 

How to avoid capital gains tax on inherited property? 

You can claim private residence relief against CGT if the inherited property is your main residence. Otherwise, ensure you subtract agents’ fees, solicitors’ fees and other allowable deductions, and use your annual capital gains allowance. 

How to sell inherited house to sibling? 

You can sell an inherited property to a sibling by buying out their share of the house. A new deed will be drawn up, naming them as the sole owner.  

Who pays inheritance tax on jointly owned property? 

Unless the property was jointly owned with a late spouse or civil partner, the surviving owner may have to pay inheritance tax at a rate of 40% if it can’t be covered by the estate.  

Find out more 

Have we answered your questions on inherited property in Rochdale? If you have inherited a property in Royton, Tameside, Norden or the surrounding areas and are thinking of selling, talk to us. We’d be happy to advise you about all of the issues involved in selling inherited property and give the home an accurate and current valuation. 

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