Selling an Inherited Property Fast: Easy 7 Step Guide + Saving on Taxes
Selling an inherited property can be complex, involving legal processes, tax obligations, and emotional decisions. Probate is often required before a sale can be completed, and you may need to pay inheritance tax within six months. Whether you choose to sell through an estate agent, auction, or a cash house buyer, understanding your options ensures a fast, hassle-free sale while minimising financial and legal risks.
Key takeaways:
- You can market the property before probate, but the sale can’t complete until approval.
- Inheritance tax is due within six months, even if the property remains unsold.
- Selling to a cash buyer avoids chains, delays, & fees, ensuring a quick, guaranteed sale.
How to Sell an Inherited House
1) Research your acquired property
Start by researching legal requirements, securing insurance, and assessing the property’s condition. Check for outstanding debts, including mortgages or utility bills, as these may still apply. If debts exist, contact lenders to explore payment deferrals until the sale is complete. Understanding these factors early helps streamline the selling process.
Advice from our property expert Paul:
"I always advise homeowners to first do a background check of your inherited property & check if you've inherited any mortgages or loans in addition to the property.
Believe me this will save you a lot of time & headaches later down the line!"
2) Insure your property
Most of the time, an inherited house is also an empty house and an empty house attracts hazards. As a result, the house can be exposed to several risks; these include natural hazards such as pests or domestic incidents such as fires or floods.
The best practice, in this case, is to insure your house for the time between accepting the inheritance and selling the home. This way, you can conserve the value of the house.
3) Research the potential taxes
A very common question that gets asked when people first inherit property is, "if I sell an inherited property, is it taxable?". The answer is yes, and we'll cover what you need to know below.
The three main taxes are:
- Inheritance tax (IHT)
- Capital gains tax (CGT)
- Income tax
Inheritance Tax on Property
Inheritance tax applies when transferring property, except when left to a spouse or civil partner. Otherwise, it’s calculated as a percentage of the estate’s value above the tax-free threshold.
Capital Gains Tax on Inherited Property
Capital Gains Tax (CGT) applies when you sell an inherited property for more than its market value at the time of inheritance. The tax is calculated on the profit (gain) made from the sale, not the total property value. However, if the property was your primary residence, you may qualify for relief.
How do I avoid capital gains tax on inherited property?
To avoid or reduce Capital Gains Tax (CGT) on an inherited property, you can designate it as your primary residence before selling, which may qualify for Private Residence Relief. Alternatively, if you sell the property at the inherited value without making a profit, CGT won’t apply. You can also deduct allowable expenses, such as legal fees and renovation costs, to lower your taxable gain. If the property is jointly inherited, the tax burden is split, potentially reducing liability. Consulting a tax professional can help identify the best strategy based on your circumstances.
How is capital gains tax calculated on the sale of inherited property?
In its simplest form, you can calculate CGT by getting the sale price of your property and then subtracting the taxable basis. This will determine your gain.
For more information on this, click the following link: https://www.gov.uk/capital-gains-tax
Income Tax on Property
This type of tax only applies if you previously used the inherited house that you are currently selling to generate an income (E.g. you have been renting the home.
For more details on how and which of the taxes above are to be applied in your case, check: https://www.gov.uk/tax-property-money-shares-you-inherit/property.
Once your research is done and you're happy you understand the tax systems well, it’s time to move on to the following 4 steps.
4) Check if there is a will in place
To sell the property, be sure that the house's former owner has not left a will.
If there is a will, confirm that according to the will, you are the property's sole heir so that you can sell it without any problems.
5) Apply for probate - Do I need probate to sell an inherited property?
Whether there is a will or not, you need to apply for probate to sell the house.
A probate is a legal term of a document that gives you the right to “administering of a deceased person's will or the estate of a deceased person without a will.”
You can apply for probate by paying a probate practitioner to do it on your behalf.
Related Read: How to sell a probate property fast
6) Sell the house - What are your options
When it comes to selling an inherited house, you have several options. The main 3 are:
- Selling via estate agents
- Selling via the auction house
- Selling via a sell house fast company
Each option has its own benefits. Ultimately comes down to how fast you want to sell the inherited property.
At Housebuyers4u we buy all types of homes including inherited properties.
Click here to find out how we helped Ms Evans in Cardiff sell her inherited property
7) Pay your taxes
Once it’s all worked out concerning what type of taxes you would have to pay in order to sell your inherited house, it’s time to proceed with payment.
Once the taxes have been paid, you can officially consider the transaction closed and the house sold.
Most of the time, the sale of an inherited house is a tedious and complex process that, more than anything it needs time and patience to be completed.
Do You Need Probate to Sell an Inherited Property?
Yes, probate is usually required to sell an inherited property, as it grants legal authority to the executor or administrator to handle the estate. Without probate, the property cannot be legally transferred to a buyer. However, if the property was jointly owned with the deceased, the surviving owner can sell without probate. Executors should apply for probate as soon as possible to avoid delays in the selling process.
According to Todays Wills and Probate the average probate processing time is 9.3 weeks, though paper applications can take over 15 weeks.
Is It Better to Keep or Sell an Inherited Property?
Whether to keep or sell an inherited property depends on your financial situation, long-term goals, and the costs involved. Keeping the property can provide rental income or future appreciation, but it also comes with maintenance, taxes, and potential capital gains liabilities. Selling may be the better option if you want to avoid ongoing expenses, settle inheritance tax obligations, or access funds quickly. Consider market conditions, personal circumstances, and any shared ownership complexities before deciding.
Why You Might Need to Sell an Inherited Property Quickly
Even if you’re eligible to hold onto an inherited house, there are many scenarios where a fast sale can be the most practical or financially sound decision:
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Inheritance Tax Deadlines
- If you’re facing the six-month deadline to pay inheritance tax, a quick sale can free up funds to cover the bill and avoid additional interest or penalties.
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Mortgage or Outstanding Debts
- Inherited properties sometimes come with existing mortgages or loans. Selling fast can help settle these debts without further accruing interest.
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Maintenance & Upkeep Costs
- An empty property still racks up costs like council tax, insurance, and utilities. The longer it’s unoccupied, the bigger the drain on the estate’s finances.
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Emotional Considerations
- Sorting through a loved one’s home can be overwhelming. Finalising the sale sooner can provide closure and reduce ongoing stress.
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Multiple Beneficiaries
- If several family members inherit the property, there may be pressure to unlock funds quickly—especially if someone relies on their portion to cover major expenses.
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Property Condition & Potential Deterioration
- Empty homes are at risk of damp, break-ins, or general disrepair. A speedy sale helps avoid costly repairs.
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Changing Market Conditions
- If the housing market is favourable today, waiting too long could mean missing out on a higher sale price or a pool of ready buyers.
Below is a table of how many inherited property sales we completed in 2024:
| Housebuyers4u Inherited House Sales Facts | Figure |
|---|---|
| Inherited Properties Purchased in 2024 | 61+ |
| Fastest Recorded Completion | 7 Days |
| Chain Breaks in Our Transactions | 0 |
| Guaranteed Cash Offers | 100% |
How Housebuyers4u Can Help You Sell an Inherited Property
Selling an inherited property can be overwhelming, especially when dealing with probate, tax obligations, and emotional decisions. At Housebuyers4u, we buy all types of houses and provide a straightforward, hassle-free sale, completing in as little as 7 days—much faster than the 6-12 months a traditional sale can take.
With our guaranteed cash offer, there are no estate agent fees, no risk of buyer fall-throughs, and no waiting on mortgage approvals. Whether you're looking for a quick sale to cover inheritance tax or want to avoid the complexities of selling through an estate agent, we offer a secure, stress-free solution.
