Selling an Inherited Property: The Complete UK Guide

Inheriting a property is often the largest financial event most people experience. Whether you’ve inherited a family home, a buy-to-let, or a holiday property, the process of selling it brings legal, tax, and practical questions that can feel overwhelming during an already difficult time.

This complete guide walks through everything you need to know about selling an inherited property in England and Wales — from when you can put it on the market through to managing capital gains tax on the sale.

Can you sell an inherited property before probate?

You can market a property and accept an offer before probate is granted, but the sale cannot legally complete until probate is issued. The legal title to the property remains with the deceased’s estate until then.

Most buyers and their solicitors will understand this and are willing to wait. However, you should be upfront with potential buyers about the probate timeline — typically 4 to 6 months for straightforward estates, longer if there’s inheritance tax to settle or complications with the will.

The 6 steps to selling an inherited property

Step 1: Establish legal ownership

Before doing anything, the executors or administrators need to obtain a grant of probate (with a will) or letters of administration (without a will). This gives them legal authority to sell the property.

Step 2: Get the property valued

You’ll need a date-of-death valuation for the IHT400 inheritance tax form. This is important — it becomes the property’s base cost for capital gains tax purposes. We recommend a RICS surveyor for properties near the inheritance tax threshold, as HMRC can challenge informal valuations.

Step 3: Arrange insurance and security

Existing buildings insurance often becomes invalid when a property is unoccupied. You’ll need specialist unoccupied property insurance, and most insurers require the property to be visited at least every 7 to 14 days. Drain down the water, secure windows and doors, and consider an alarm.

Step 4: Clear the property

Clearing the property of personal possessions is often the most emotionally difficult step. Take your time, distribute items in accordance with the will or family wishes, and keep proper records of values for the estate accounts.

Step 5: Market and sell

Choose an estate agent who has experience with probate sales. Be honest about the timeline. You can also consider auction or quick-sale companies, though these typically pay below market value.

Step 6: Complete the sale and distribute proceeds

Once contracts exchange and the sale completes, the proceeds are paid into the executor’s estate account. Outstanding debts and inheritance tax are settled, and the balance is distributed to beneficiaries according to the will or intestacy rules.

Capital gains tax on inherited property

One of the most misunderstood areas. There is no capital gains tax on inheriting a property — only on selling it later for more than its probate value.

How CGT works on inherited property

• The probate value (date-of-death valuation) becomes the base cost
• If the property sells for more than the probate value, the gain is taxable
• If the property sells for less, the estate may be able to claim a loss relief through form IHT38
• The annual CGT exemption is £3,000 (2025/26 tax year)
• Residential property CGT rates are 18% (basic rate) and 24% (higher rate)

Who pays the CGT?

If the executors sell the property and distribute the cash, the estate pays the CGT. If the property is transferred to beneficiaries first and they sell it, each beneficiary pays CGT on their share of the gain.

For inherited properties that have grown significantly in value, transferring to beneficiaries before sale can sometimes reduce the overall CGT bill, because each beneficiary has their own £3,000 annual allowance. This requires careful planning — speak to a solicitor before deciding.

Selling an inherited property after probate

Once probate is granted, the sale process is largely the same as any other property sale, with a few key differences:

• The executors sign the contract and TR1 transfer deed, not the beneficiaries
• The buyer’s solicitor will want to see the grant of probate
• If multiple executors, they must all sign
• HMRC’s IHT421 may need to be filed if the value differs from probate value

What if there are multiple beneficiaries?

If a property is left to multiple beneficiaries, they have three main options:

• Sell and split the proceeds — the simplest and most common route
• One beneficiary buys out the others — usually at probate value or current market value
• Keep the property jointly — possible but complicated; needs a deed of trust and clear rules on costs, income, and exit

Family disputes about inherited property are unfortunately common. A solicitor can help mediate and ensure any agreement is properly documented.

Costs of selling an inherited property

• Probate solicitor fees — typically £1,000 to £6,500 plus VAT depending on complexity
• RICS valuation — £400 to £1,000
• Estate agent fees — typically 1% to 1.5% plus VAT
• Conveyancing — £800 to £2,000 plus disbursements
• EPC if not current — around £80
• Unoccupied property insurance — typically £30 to £100 per month
• Council tax — usually applies after a void period

Frequently Asked Questions

How Curtis Legal can help

We handle the whole process — from probate application through to conveyancing on the sale. Bundling the work with one firm saves time, avoids miscommunication, and often costs less than instructing separate firms for probate and conveyancing.

Call us on 0800 214 216 for a free, no-obligation discussion of your situation.