When a family inherits a property, there is usually contention of what to do with it. Some want to sell while others wish to keep it. These differences in opinion can cause family divisions and be exacerbated by difficult times.
Only a court ruling will put the issue to rest when things get bad. If you want to avoid the nastiness of such problems, one logical option is to sell the property and come together as a family.
If you are interested in selling inherited property and wish to sell it fast, we’re the largest home purchasing company in the UK. We have years of experience dealing sensitively with customers during their grieving process.
Our simple process not only can provide you with money in your account within seven days, but we also handle the extensive processing issues associated with inheritance.
The great thing about our process is that we don’t try to undercut you on a property’s evaluation. Instead, we pay you fair value based on local prices and generate money once we’re ready to sell the property later. Doing this helps ensure you’re willing to sell and not exploit a bad situation.
Understanding Probate
To inherit anything legally, you need to apply for probate. This facility gives you the power to transfer assets from your departed loved one to beneficiaries. For a process that has been occurring for years, this is by no means streamlined. To get probate approved, it can take between 4 to 6 weeks.
This condition is irrespective of will contentions. Also, waiting to find property buyers later can be challenging, especially when property chains are involved with buyers.
If you have debt on the estate, you’ll likely want to see fast instead of trying to finance an asset that will take time to move.
Ownership Challenges
There are very few situations where the recipient of inherited property is only one person. You’ll inevitably find siblings contend the sale or retention of a property. Sometimes, there is no will or a will that presents ambiguities on critical points to add to challenges.
After spending weeks getting probate and paying inheritance tax on larger estates, the last thing you need is disputes. These can go on for months or years and separate the family during this process. This headache can make it thus logical to sell the property to remove the greed associated with the situation.
What Your Options Are
Assuming you agree with all parties that selling is a good idea. How do you handle scenarios where there is no will? One way to proceed is to divide the sell equally after the market has been surveyed, put on the market, viewed multiple times, and eventually sold. Yet, if some siblings don’t want to sell, it’s pretty challenging to get a court ruling to force a sale.
Some use this fact as a device to negotiate form equity from the sale. In addition, one or more siblings may be living in the property, causing challenges with achieving a deal. It’s an irritation that has no happy ending.
Renting out the home; can help diffuse the situation and get siblings out of the house or keep them where they want to be. Yet, it does cause problems when tenants destroy the property and leave, causing shareholders a loss of income.
In addition, maintenance and other property management will need to be conducted regularly, you’ll likely need to pay or include a property management firm, and everyone’s erodes profits. Also, not every property is suitable for renting, and you will likely need renovations before finding a tenant.
A sibling may find a 3rd party to buy out their share of the arrangement. Documentation would need to be drafted and business practices observed. This process will cost money and take time to arrange but may free you from these responsibilities.
Inheriting Debit or Mortgaged Properties
If you’ve just inherited an estate, you would’ve also inherited its debt. Many don’t consider this, which can ruin something that initially looks like a saving grace. If there’s a mortgage with the property, you can ask for a freeze on payments until probate is complete.
You can check if the loved one has life insurance to cater for this event, and you can get the insurer to pay off any debts if they do. However, you may need to talk to many different providers if they haven’t specified.
If you are in a position where you’re forced to pay the debt yourself, getting a loan can be a problem. Likely, you’ll already have a mortgage on a property or possibly a bad credit rating.
You may wish to remortgage your property to help pay the new debt. However, this is inherently risky as it will likely increase your premium and be challenging to meet emergency financial situations.
Tax Implications
Inherited homes and assets are subject to inheritance tax unless a spouse or direct decedent are recipients. You can receive £325,000 tax-free or £500,000 if the estate includes a home. Above this threshold, 40% tax is applied to the evaluation.
Capital gains tax also needs paying on top of the inheritance tax if the home is held and appreciates since the probate evaluation. This tax is bracketed and can increase drastically after each threshold level. Therefore, this is an excellent reason to sell the property immediately to avoid capital gains tax.
Selling A Home Fast, But Not Being Exploited
After reading this article, you may think that it’s a wise idea to sell your inherited property and do this fast. We have dealt with thousands of clients that have all been in a similar boat to you. The reason people use us is that we undertake all the technical detail enabling you to sell a property quickly.
We ensure you’ll get fair market valuations and money in your account within seven days. We do this because we don’t get profit on the property from undercutting you. We need to buy from you, so the offer must be fair market value. We also don’t want to exploit you at a moment of pain; instead, we profit from the turnaround and sell.
If you’re interested in allowing us to help you, please contact us for a free consultation and evaluation. You’re not under obligation to sell to us, and it costs you nothing to ask. In addition, our specialists all work on your case for free, so you don’t have to worry about any costs going through the process.
