Inheriting a property can be a bittersweet event, but it can also leave you in a very fortunate position. Whether you've inherited a cottage in the Highlands that’s too far away to manage, or run-down house that you can’t fix, the journey of selling an inherited property can be both rewarding and daunting. Here are the key steps to take when selling an inherited property:
Evaluate the Property's Condition and Worth:
Start by taking a good look at the inherited property to assess its condition and value. Give it a thorough inspection to spot any maintenance issues, structural concerns, or potential renovation needs. If you are unable to carry out or pay for the required renovations yourself, you will need to sell the property in the condition it is in. We offer a free, no obligations appraisal which can give you an accurate valuation of the property for auction, and we regularly sell properties that need a lot of work done.
Understand Your Legal Responsibilities and Taxes:
Inheritance tax is due on any property over the value of £325,000. If the property is worth more than this, you will need to pay 40% on the remaining value. Inheritance tax does not apply when a property is passed to a civil partner, husband, or wife. If a property is being passed to children or grandchildren, the inheritance tax threshold can rise to £500,000.
Council tax will also need to be dealt with for the property. If the property is unoccupied during probate, it will be exempt from council tax. This will also apply for up to 6 months after probate is granted.
Capital gains tax can apply if the property you have inherited has increased in value during the time since you inherited it and the property being sold. Understanding these obligations can help you make informed decisions about the management or sale of the property. If you are unsure, contact us and we can talk you through it.
Start the sales process:
Once you've evaluated the property's condition, understood your legal responsibilities, and considered the tax implications, it's time to create a plan for selling the inherited property. Auction can be an ideal route, particularly if the property needs to be sold quickly or is in bad condition. You can also sell with us for free, avoiding the marketing and sales fees that come with using traditional estate agents. Once we have valued the property, we will carry out extensive marketing and conduct viewings where appropriate. The sale of the property will be up to you – you can accept a pre-auction offer at any time or enter the lot into an online or in-room auction to achieve best price with competitive bidding. Completion will take place within 28 days after the sale, making auction one of the fastest ways to sell your inherited property!
Inheriting a property is a milestone that presents both opportunities and responsibilities. By following these key steps and choosing auction to sell, you can navigate the process with confidence and achieve a fast, secure sale. We're here to provide guidance and support every step of the way, so if you have any questions at all, please feel free to give us a call on 0141 339 4466, or click here for a free auction valuation.
