What is Probate Property? Everything you Need to Know
You may have heard about probate and “probate property” but not really know much about what it actually means.
You wouldn’t be the only person for whom probate is much of a mystery. After all, it’s not every day that you have to deal with probate matters. Hopefully this article will be of help to you.
You may have heard about probate and “probate property” but not really know much about what it actually means.
You wouldn’t be the only person for whom probate is much of a mystery. After all, it’s not every day that you have to deal with probate matters.
In this article, we set out in plain English:
- What is probate
- What probate property means
- How to navigate your way through probate whether you are buying or selling.
What is Probate?
When someone dies, the person who applies for the right to deal with the deceased’s possessions and property has to “apply for probate”. If the person who died left a Will, then the applicant can be given a “grant of probate”.
If someone has not left a Will, then a person gets “letters of administration”. If someone hasn’t left a Will but has part-owned a property it will pass to the part-owner. Note that the rules are slightly different in England when compared to Wales or Scotland. More information can be found on the Government websites.
Our Advice When someone dies, you will need to contact the owner of the asset (property). This is usually the organisation with whom the deceased has a mortgage. It is helpful in this case if paperwork is easily traceable along with details of finances and other things to do with a home.
What is a Probate Property?
A probate property is a property that is subject to the probate process. You will need to have the ‘grant of probate’ to be able to dispose of the property. You’ll have the authority to sell the property and sign all the required documents. Without it, the property will be in limbo.
Our Advice The probate process can be lengthy, and sometimes seem complex. While probate may not be something you have to deal with right now, it is worth understanding what you need to do in advance.
Selling a Probate Property
Putting the property on the market is not the end of the story. Remember, when you’re selling a probate property, it has to be valued as it was at the time the deceased passed away. This is because it has inheritance tax implications and HRMC need to know the correct figures.
You are at liberty to market the prior to obtaining probate, but every case is different so take advice from your Solicitor and Estate Agent.
It is necessary to have received probate before you are able to exchange contracts and complete the sale. However, under normal circumstances, probate will be granted in less time than a sale contract, so the two can sometimes run side by side.
Our Advice Use a conveyancer to deal with the legal side of things. You can also use the services of a solicitor who specialises in inheritance tax and conveyancing.
Buying a Probate Property
It is somewhat a myth that a probate property could be an opportunity to get your hands on a relatively inexpensive home. Sometimes, a property that has been inherited is not needed by the recipient and a quick sale releases preferred funds. In this case, the seller may be tempted to accept a realistic offer, but this is very much dependent on the current market conditions.
Be aware that if the property is being sold by an executor who has never lived in the property themselves and doesn’t know it very well, there may be unknown issues so it’s wise to get a survey done. Similarly, make sure that whoever is selling the property has the authority to do so!
Our Advice Do your homework. Ask questions of the executor or the estate agent and be thorough.
A probate property presents opportunities, but there are i’s to dot and t’s to cross. There’s paperwork to get right and it’s paramount that you seek advice from transparent experts who will tell you everything you need to know.
Communication is key, whether you are buying or selling a probate property. We can help you with the process. Email us at sales@alan-cooper.co.uk or call us on 024 7634 9336.
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