While you may be left property by a distant relative, for most of us, inheriting a house comes after the death of a parent and is a difficult time – practically and emotionally.
If you’re the sole beneficiary of the property, you’ll need to make the tricky decision of whether to hold on to what may have been your childhood home – or sell up. This can be troublesome when you’ve jointly inherited it with your siblings. Some people choose to rent the property out for a while before deciding what to do in the long term.
If you find yourself in this situation, it’s worth understanding what needs to happen to a property when someone dies, and the tax and legal implications. For example, the average selling price is now £464,000 in Tower Hamlets, and £599,000 in South Woodford. As a result, local families may need to pay inheritance tax when they inherit property.
Read on for our guide to the steps involved in selling inherited property.
Dealing with someone’s estate after their death is different whether or not they have made a will. If you know there is a will, you need to find it as soon as possible – among their belongings or from their solicitor. The will should specify the deceased person’s wishes about who should inherit the property. You can also find who is designated as the executor – the person responsible for administering the estate and ensuring their wishes are carried out.
Executors of the will are legally required to act in the best interests of the estate, including achieving a fair market price if the property is sold.
Buying and selling at the same time?
Here are 10 things that could go wrong, and often do go wrong, and what, if anything, you can do to avoid them.
Buying and selling at the same time?
Here are 10 things that could go wrong, and often do go wrong, and what, if anything, you can do to avoid them.
If there’s no will, the deceased is said to be intestate – an administrator will be appointed and they will follow the ‘intestacy rules’ to establish who is eligible to inherit from the estate. Inheritance rules usually limit beneficiaries to a spouse, civil partner or other specified close relatives.
Applying for the legal right to deal with someone’s estate – their property, money and possessions – when they die is called ‘applying for probate’.
You don’t have to apply for probate if the estate is under £5,000, only takes the form of premium bonds or savings, or on jointly owned property and bank accounts you shared with the person who has passed away. Shared assets will usually be transferred to your name alone, instead of passing through the probate process.
The probate process depends on whether the deceased has left a will, when they died, and how much the estate is worth. You can apply for probate yourself using the gov.uk website or you can appoint a solicitor. Applying yourself is straightforward but you will need to pull together information of all the deceased person’s assets. If their affairs are complex or there are issues within the family, it’s best to engage a solicitor. If the person did not leave a will, you need to complete a similar process, known as applying for ‘letters of administration’.
You won’t be able to sell the home until probate has been granted. However, you will need to have the property valued when you apply for probate – so that the worth of the person’s estate can be calculated for inheritance tax purposes.
The amount of inheritance tax due depends on how much the estate is worth, and who is inheriting it. There is no inheritance tax to pay if left to a spouse or civil partner, so for example, a husband can inherit a wife’s property without receiving an inheritance tax bill. The estate includes all of the person’s assets – savings, lump sum death benefits and possessions such as jewellery, furniture or cars, as well as the property.
If the estate comes to more than the threshold for inheritance tax you will need to get an accurate valuation of the property and any other assets worth more than £1,500, then contact HMRC. Read more about inheritance tax and property taxes on the gov.uk website.
The inheritance tax-free threshold is £325,000. The threshold increases to £500,000 if the estate is left to the deceased’s children or grandchildren.
The standard inheritance tax rate in the 2025/26 tax year is 40%. However, it’s possible to reduce the inheritance tax rate to 36% if some of the estate is left to charity.
You can’t avoid paying inheritance tax you owe, but your bill may be lower in these circumstances. If you inherit your parents’ or grandparents’ main property, the inheritance tax threshold is raised to £500,000. The inheritance tax rate can also be reduced to 36% if the will gifts 10% of the estate or more to charity.
You won’t have to pay inheritance tax if the will gifts the entire estate to a spouse, charity or a community amateur sports club. If you are making arrangements for your own will, seek professional estate planning advice from a financial advisor or trusted solicitor.
You will need a valuation, then add this information to form IHT400, submit it and pay your inheritance tax bill. Ask an estate agent or chartered surveyor to provide a valuation of the property, and any other assets with a value of £1,500 or more. You can pay immediately or in instalments, but HMRC may charge interest if you choose this option.
Should you sell the property, can you or a relative live in it, or would it make more sense to rent it out for a while? After the probate process has ended, the new legal owners must decide what to do next.
If you choose to sell your inherited property, you can engage a local estate agent, auction house or property buying company. Experienced local agents can suggest ways to bring the property up to standard to achieve a better price, and can list your property locally and on major property portals to reach a wide range or buyers.
Doing some renovations before you sell can make a dated property more appealing to buyers. If you don’t have the budget for extensive works, or will find it difficult, a good clear-out and simple update can help to modernise it. Remove any furniture and dated fittings, repaint the property in neutral colours, and make sure you spruce up the exterior of the property too.
To complete the sale, you will need the following documents:
When selling an inherited property, you will require legal proof that you own the property. If there is a will, then the executor of the will applies for a Grant of Probate, and this document is required by the buyer’s conveyancer.
If there was no will in place, the administrator of the estate applies for a document called the Letters of Administration that will be required to complete the transfer of ownership.
Your solicitor will require the Land Registry title documents for the inherited property. If you cannot locate the documents, you can obtain the deed through the Land Registry.
Conveyancing forms TA6 (Property Information Form) and TA10 (Fixtures and Contents Form) will be required to give to the buyer’s conveyancer. For leasehold properties, a TA7 (Leasehold Information Form) is also required, plus the leasehold document and management information pack.
You may also need to provide a copy of the death certificate to the buyer’s solicitor.
You will also require a valid EPC to sell a property in England and Wales to provide prospective buyers with energy efficiency information about the property.
Proof of ID, such as a copy of your passport and proof of address must also be submitted to your solicitor.
There are a few different options for selling the property, including:
Not straight away, and you may not need to pay the tax if you live in the property as your main residence. But if you inherit a property then sell it later, you may have to pay capital gains tax (CGT) on the increase in value while you owned it.
Standard rate taxpayers pay capital gains tax at 18%, which rises to 24% for higher rate taxpayers. However, there is a tax-free allowance, you can offset certain costs against capital gains taxes (CGT), and you won’t have to pay stamp duty.
You won’t have to pay income tax on the property unless you decide to keep it and rent it out. In this case, you will need to register with HMRC for self-assessment and complete an annual tax return as your rental profits are taxable income.
When siblings inherit, its possible to distribute the proceeds of the house sale evenly between them. But the situation becomes more complex if you wish to sell the home and your brother or sister doesn’t.
Alternatively, you can sell your share to a sibling, but it can put a big strain on your relationship if one sibling isn’t able to buy the other out. It is sometimes possible to force a sale by getting a county court judgement. In this situation, get legal advice.
The time it takes depends on many factors, from the complexity of the deceased’s affairs to how attractive the home is to buyers. A simple probate case can be granted in a few weeks, and an attractive property in a desirable location with no chain could sell in the same amount of time. Often though, it will take longer, possibly around six months to a year.
If you decide to sell your inherited house, there are costs you’ll need to consider, on top of the inheritance and capital gains tax we’ve already mentioned.
If you apply for probate yourself on the government website, the charge is currently £300. The costs of going through a solicitor will vary depending on the complexity of the estate and the work involved, but the average is between 1% and 5% of the inherited property’s total value, plus VAT.
If the property needs updating, you could spend an average of around £30,000 to bring it up to a good standard.
You’ll need to consider estate agent and conveyancing fees too when you come to sell. And you’ll also be liable for council tax, utility bills and insurance cover while the property is empty.
If you want to keep the inherited house, you will need to arrange to take on a mortgage deal with the existing lender or seek a new one. This applies whether you want to move into the property yourself or if you’ve inherited a rental property with a buy-to-let mortgage in place.
No, you will not be able to complete a sale and exchange contracts on an inherited home until you have obtained a Grant of Probate or Letters of Administration. However, you will be able to market the property while waiting for the legal documentation to be finalised.
Yes, you should inform the mortgage lender as soon as possible and advise them of the plans and they may place the mortgage in a “probate hold” to stop mortgage payments until probate is completed. They will usually request a copy of the death certificate.
In the scenario where a property is in negative equity, this means that the outstanding mortgage balance is higher than the property value. When a person dies, lenders will look to settle the debt from the estate, so other assets may be used to cover the shortfall. Beneficiaries are not liable for paying the shortfall from their personal finances.
Yes, it is usually possible to transfer an inherited property into your name without selling it, but it depends on what is detailed in the will or what is decided by the rules of intestacy. You will also require either a Grant of Probate or Letters of Administration to legally transfer the property into your name. If there is an outstanding mortgage, arrangements will need to be made to take out a new mortgage in your name or to pay the outstanding balance off.
When you inherit an empty property, standard home insurance policies will usually become invalid. Properties that are unoccupied for longer than 30 days (or 60 under some policy terms) will require specialist cover known as unoccupied property insurance, as there is a higher risk of issues such as burst pipes, vandalism and undetected damage.
If the property you have inherited has outstanding debt against it, such as a mortgage, second charge loan or equity release, the debt will need to be settled against the estate before the proceeds from the sale are distributed to beneficiaries. The executor of the will or the administrator should contact the lender to advise them that the property owner has died and whether the plan is to sell the property or transfer ownership to discuss the next steps.
Yes, it is a legal requirement to provide a valid EPC to prospective buyers when you market and sell a property.
If you have inherited a property in Ilford or Redbridge, and aren’t sure what to do next, talk to us. We’d be happy to discuss your options, whether you’re thinking of putting the property on the market or renting it out to tenants. Give us a call today.
Selling your house can be a complicated process, but breaking it down can make it less intimidating. That’s why we have compiled this step-by-step guide to the process of selling a house in east London. Whether you’re selling for the first time, are buying at the same time, or just aren’t sure what the current advice is in 2026, read on for tips on how to sell your house. We’ll talk you through everything from mortgage matters to professional photography. We also answer your frequently asked questions about the selling process. Find out more.
If you are looking for a fast house sale, there are several ways that you can improve the chances of a quick sale. Choosing an experienced local estate agent will help to speed up the sale but you can also get your paperwork prepared and make sure that your property is presented well to attract more viewings and prospective buyers.
Read our tips on how to sell a house quickly in East London for a full guide on the actions you can take to help to achieve a faster property sale.
When selling a leasehold property in east London, your first step should be to check how long is left on the lease. Properties with short lease lengths remaining can be more difficult to sell or the property value can decrease, so you may need to consider extending the lease before selling.
This article will help you to decide whether it will be beneficial to extend your lease, how you can apply for an extension and the costs involved. We also provide an update on the leasehold reforms that are currently underway.
