Managing the sale of a parent or grandparent's house after they have passed away, or finding yourself dealing with the estate of another loved one, can be incredibly emotional. We often speak with inheritors who rely on our expertise to complete a sale as quickly as possible through a property auction.
It’s always worth seeking support from a professional, whether an agent, solicitor or auctioneer when selling a home after someone has died.. Handling property sales while grieving is more complex than under normal circumstances, and it's important to have guidance you can trust.
We’ve summarised the key things you need to know about selling a property following a bereavement. However, we should also note that the specifics around probate sales and ownership rights will depend on the situation.
Key takeaways
- The sale of a home that belonged to someone who has passed away is called a probate sale. The person or people with the right to sell the property are usually nominated in the deceased's will as executors.
- Probate has to be granted before you are permitted to sell the property. This is a court-issued certificate that confirms that the ownership has passed to you.
- You can choose whether or not to sell, and there is no obligation to do so. For example, you might decide to live in the home yourself or keep it as a rental asset. However, inheritance tax liabilities mean many choose to sell.
- Timings may be crucial, as inheritance tax starts to become payable within six months. This is why heirs who inherit properties often opt for an auction sale, which provides the benefit of a quick completion time.
Find out how much your probate property will sell for at auction.
Need to speak to an expert about selling a property after someone has died? We’re here to listen, help and give you honest advice. We can give you a free appraisal for your probate property and help you to sell the property quickly and safely.
Understanding How a Probate Sale Works When You Have Inherited a Home
Wills and the legalities of inheritances can be complicated. Still, hopefully, the person who has died has completed a legally valid will, which sets out who they want to inherit their assets and who will act as the executor.
Executors can be one or several people, such as a child, or all of the deceased’s children, who then have the collective obligation to:
Pay off any debts that remain due
Have the estate and property valued
Manage the payment of inheritance tax
Sell the property if they wish
Probate is a legal process in which the courts verify who has the authority to manage an estate. Although you can market the home or list it for sale, you must wait until you have a formal certificate of probate before you're allowed to complete a sale transaction.
This typically takes around two to four months, and it's advisable to start probate proceedings as soon as you can if you intend to sell a property after someone has died.
The Implications of Inheritance Tax When Selling a Property After a Bereavement
The standard UK Inheritance tax rate is 40%. This applies to estates valued at over £325,000, although the tax doesn't apply if a home is left to a spouse or civil partner.
The tax-free allowance increases to £500,000 if:
The home is left to the deceased’s children or grandchildren, which can include adopted, fostered or stepchildren.
The estate in total, including the property, is valued at under £2 million.
As we mentioned above, inheritance tax is payable from six months after the owner passes away. If there is a tax obligation payable, it is very common for the inheritor or group of heirs to look for the speediest way to sell. This means they can release funds from the property and use these to pay the tax bill, especially if the liability is high.
Should you decide to live in the property or keep it and rent it out, you’ll need to find an alternative way to cover any inheritance tax, and, of course, a lot will depend on whether there are other assets you’ve inherited that could comfortably cover the tax charge.
Insights Into Selling a Property You’ve Inherited Following a Death
Once probate has been granted, you have several options for selling the property:
Private Treaty Sale (Estate Agent) – the traditional route of listing the home on the open market, though this can take many months and may risk fall-throughs.
Private Sale to a Cash Buyer – a quicker route than the open market, but often at a discounted price compared to auction or estate agent sales.
Auction Sale – usually the fastest method, giving a legally binding result on the day of the auction. This is particularly attractive for probate sales, as it helps executors meet the six-month inheritance tax payment deadline and suits properties that need modernisation or repair.
Selling a Property by Auction After Someone Has Died - step by step
When a property forms part of an estate, selling at auction can provide certainty, speed, and a fair market price. Here’s how the process usually works:
Step 1: Grant of Probate
Before the property can be sold, the executor (or administrator, if there is no will) must obtain a Grant of Probate or Letters of Administration. This gives the legal right to sell the property.Step 2: Choosing Auction as the Sales Method
Auctions are often chosen for probate sales because they provide a transparent process, competitive bidding, and a legally binding sale once the hammer falls.Step 3: Preparing the Property
You’ll decide whether to sell the property ‘as seen’ or to carry out minor works, such as clearing belongings or fixing essential issues. Many probate properties are sold in their current condition, which appeals to investors and developers.Step 4: Auctioneer’s Guidance
An experienced auctioneer will advise on pricing, set a reserve (minimum acceptable price), and handle all marketing and viewings. They’ll ensure the property is promoted to the right buyers.Step 5: The Auction Day
On the day, interested buyers place bids in the auction room or online. If the bidding meets or exceeds the reserve price, the highest bid is accepted.Step 6: A Legally Binding Sale
As soon as the hammer falls, the buyer is legally committed. They pay a deposit immediately and must complete the purchase within the set timeframe (usually 28 days).Step 7: Estate Settlement
The proceeds of the sale are then transferred to the estate, allowing executors to pay any debts, taxes, and distribute inheritance to beneficiaries.
The speed of the sale isn’t the only reason many people choose auctions for inherited properties. Other key advantages include:
No property chains – all auction sales are completed on a cash basis, even if the buyer uses auction finance.
Reduced risk of delays – inheritors don’t face long waits caused by broken chains further up or down the market.
Certainty of sale – once the hammer falls, the buyer is legally committed and cannot back out.
Expert Advice on Selling a Property After a Loved One Has Died
If you have any questions about probate and how to manage the sale of an inherited property, you are welcome to get in touch with the Clive Emson auction teams around the UK, and we’ll be happy to explain more about how auction sales work.
We can also assist with auction valuations, providing clarity on what you might expect to sell for, ensuring that the sale of your home is well-managed and doesn't add to the stress of what is already a difficult time.
