Selling An Inherited Property
Inheriting a home isn’t something that happens every day, so most of us don’t know where to start or what the process involves.
Dealing with the loss of a loved one is an emotionally draining time, and selling (or renting out) the home on top of this could add to your stress levels. To help you navigate the sale of the inherited property in the best way for you, this guide to property inheritance breaks down everything you need to know.
If you would like to speak to the Good Move team in the meantime, don’t hesitate to get in touch with our expert team, who would be happy to advise and discuss your options with you.
Key takeaways of handling inherited homes
- Check the will and whether probate is needed. You can prepare the property for a sale while you wait, but if probate is needed, it must be granted before the sale can complete.
- Understand the tax implications. Inheritance tax may apply to the estate, Capital Gains Tax may apply to any increase in the property’s value, and rental profits may be subject to Income Tax.
- Agree the next steps with any other beneficiaries. If you inherit jointly, you should discuss selling, renting, or buying out someone else’s share.
- If the home is rented, check tenants’ rights before making plans. Selling with tenants in place can be an option. If you want to gain possession, you must follow the correct legal process.
- Compare your selling options. Estate agents, auctions, private sales, and cash buyers offer different balances of speed, cost, and likely sale price.
The different stages of inheriting a property
Around 43% of Brits expect to inherit property from their elder relatives or parents in their lifetime. With this affecting almost half of the UK population, it’s important to know the different stages and what to expect along the way.
The very start of the process involves consulting the will to understand how the deceased person wanted their house to be handled on their behalf. This could be given to one person or distributed in shares. Once you have a copy of the will, it should be relatively easy for you to proceed, splitting the shares of the property the way that your loved one intended or taking sole ownership from that point onwards.
What is probate, and why do I need it?
Probate is the legal process of administering a deceased person’s estate. Contrary to what many people assume, probate is usually required whether or not a will exists – the will determines who the executor is, but the Grant of Probate is still typically needed before a property can be sold.
With probate granted, the executor gains the authority to deal with the deceased’s assets, settle any debts and outstanding taxes, and begin the process of transferring property.
Probate applications typically take between six and twelve months, so it’s important to factor this into your plans early.
Anyone over the age of 18 can apply to be the entitled inheritor of the deceased’s assets, but in the absence of a will, it is typically their closest living relatives who would apply. After that, relatives are most entitled in this order:
- Husband, wife or civil partner (even if separated)
- Children (biological or legally adopted, not stepchildren)
- Grandchildren
- Great-grandchildren
Can you sell an inherited property before probate?
No, you cannot complete a sale without a Grant of Probate in place. You can begin preparing for a sale and even accept an offer, but the transaction cannot legally complete until probate has been granted.
Ownership transfer
With probate granted, the process of ownership transfer can begin. We suggest seeking support from a solicitor or conveyancer to complete this process because you’ll need to submit the following paperwork, all of which can be found on the GOV website:
| Form | Why? |
| AP1 | To apply to change the registry of the property |
| TR1 | To transfer a registered property into your name |
| ID1 | To prove your identity for your Land Registry application – this must be signed by a solicitor/conveyancer |
Good Move advice: Costs are associated with each of these applications, so make sure to include this in your budget.
Once you are the legal owner of the property, you can then decide how it is handled going forward. You have multiple options. You could rent the property, which is wise if there is still a mortgage to pay. You could also sell the property entirely if there are no outstanding costs, cutting ties with the house and starting afresh. The sale process does come with terms and conditions to be aware of, including important taxes such as Inheritance Tax and Capital Gains Tax.
Selling an inherited property
If you choose to sell the inherited property, there are a few avenues to explore.
Selling a home by auction is a quick process. You can expect to complete the sale within a couple of months, meaning any stresses and emotions are handled relatively quickly. Around 20,000 residential properties are sold by auction each year in the UK.
Sell your home to a cash property buyer for a quick-sale solution. If you don’t want to have to deal with the property for an extended time, Good Move can buy your home in just 14 days, giving you one less thing to worry about at a difficult time.
Selling with an estate agent is a longer process, but allows your home to be marketed widely across the local area. Sales with estate agents allow you to reach the widest possible audience and achieve closer to the full market value.
Selling your home privately, without an estate agent, is also an option. You’ll be able to avoid any additional agency fees, but you should be aware that there is a lot of additional admin to manage when taking this route.
Inherited property and tax
When you sell an inherited property, there are up to three taxes to be aware of: Inheritance Tax, Capital Gains Tax, and Income Tax. We’ve covered IHT and CGT in detail in our separate guide – How to Handle Inheritance Tax When Selling a Property – so we’d recommend reading that alongside this one.
Here’s a brief overview of how each applies.
Inheritance Tax
IHT is charged on the total value of the estate at the date of death, not on the profit from the sale. The standard nil-rate band is £325,000, but if the property was left to children or grandchildren, an additional Residence Nil-Rate Band of £175,000 may apply – meaning up to £500,000 can pass on free of IHT. For married couples, unused allowances can be transferred, taking the combined threshold up to £1 million. Both thresholds are frozen until 2030/31. Above the threshold, IHT is charged at 40%.
For full details on how IHT works, payment deadlines, and what changed in 2025 and 2026, see our inheritance tax guide.
Capital Gains Tax
CGT may apply if the property increases in value between the date you inherit it and the date you sell it. The gain is calculated from the probate value – the market value at the date of death – rather than the original purchase price. So if the property was valued at £250,000 at probate and sells for £290,000, CGT could be due on that £40,000 gain.
For the 2025/26 tax year, the annual CGT exemption is £3,000, meaning gains below this amount are tax-free. Above that, the rate is 18% for basic-rate taxpayers and 24% for higher-rate taxpayers on residential property. If multiple people inherit and sell jointly, each person has their own £3,000 allowance against their share of the gain.
One important practical point: CGT on property must be reported and paid within 60 days of completion. This catches many people out – so it’s worth speaking to a solicitor or tax adviser before you get to that stage.
Income Tax
If the inherited property has sitting tenants and you choose to keep it as a rental, the income you receive will be subject to Income Tax. Because this is likely to be a second property, you’ll need to declare the rental income through self-assessment. It’s worth factoring this in before deciding whether to sell or rent.
How to sell your inherited home fast
To prevent your property sale from getting caught up in a long chain, or to avoid the risk of it not selling at auction and still having fees to pay, one of your best options is to sell your home with a cash-buying property company. The safety net of this option provides you with a definitive timeframe in which the property sale will be completed, meaning you can continue with other aspects of your life during this difficult time.
At Good Move, we will provide you with a cash offer within just 24 hours, typically around 85% of the market value, and aim to buy the property in just 14 working days. The speed of this process is best suited to those who don’t have the time or resources to sell the inherited property themselves and want the process to be settled efficiently and professionally – and as quickly as possible.
We are the most regulated property-buying company in the industry, with acknowledgement from both RICS and NAPB (National Association of Property Buyers), so you can trust that the sale is being handled professionally and with care.
Your questions on inherited property, answered
What if someone currently lives in the inherited property?
If the property you’ve inherited has sitting tenants, you have a couple of options. You can keep the tenancy in place and continue receiving rental income, in which case Income Tax will apply to those earnings. Alternatively, you can look to sell with tenants in situ, which is common and often the simplest route.
If you do want to sell with vacant possession, it’s important to know that the rules around giving notice to tenants changed significantly in 2026. The Renters’ Rights Act abolished Section 21 no-fault evictions, meaning you’ll need to follow the correct legal process to regain possession. Our guide to selling a tenanted property covers this in full.
What will it cost to sell my inherited property?
This depends on your chosen route and the value of your property. Whether it’s via auction, a traditional estate agent sale or a private sale, there will always be solicitor fees to be aware of and sometimes agency fees too. Make sure you have also calculated whether Inheritance Tax or Capital Gains Tax will impact the property you have inherited.
Can I rent out an inherited property?
Yes. This is an efficient way to utilise your inherited property as it allows you to either make a steady income or ensure the mortgage is paid. To convert the home into a rental property, you’ll need to get permission from the mortgage lender if there’s still one in place as well as taking out landlord’s insurance for the property.
If you do decide to rent, it’s worth familiarising yourself with the Renters’ Rights Act 2025, which introduced significant changes to tenancy law.
Is there a time limit on selling an inherited property?
There’s no legal deadline for when you must sell an inherited property. That said, timing does matter for tax purposes.
Inheritance Tax must be paid within six months of the date of death – and if the estate is relying on the sale proceeds to cover it, that creates a practical pressure even without a formal selling deadline. After six months, interest begins to accrue on any unpaid IHT.
Once you do sell, Capital Gains Tax must be reported and paid within 60 days of completion if a gain has been made.
Beyond that, you can sell as soon or as late after probate is granted as suits your situation.
Yes, though it depends on the circumstances. If you’ve inherited a share of a property alongside siblings or other beneficiaries, you can’t usually sell your share independently – property isn’t easily divisible in the way financial assets are. In most cases, all owners need to agree on what happens to the property: whether to sell it, rent it out, or for one party to buy out the others.
If you can’t reach an agreement, it is possible to apply to the court for an order for sale, though this is a last resort and can be a lengthy process. The best starting point is an open conversation between all parties, ideally with a solicitor involved early.
If you do sell, each person receives proceeds according to their share. For example, if you inherit 60% of a property worth £200,000 and your sibling inherits 40%, you’d receive £120,000, and they’d receive £80,000 (before any applicable taxes).
If I sell an inherited property, is it taxable?
It depends on the value of the estate and whether the property has increased in value since you inherited it. Inheritance Tax may be due on the estate before the sale, and Capital Gains Tax may apply if the property is worth more at the point of sale than it was at the date of death. Our inheritance tax guide covers both in detail.
Need to sell an inherited property quickly?
We know that for many people, speed and simplicity matter more than anything else at this stage. If you need to move quickly – whether because of the IHT deadline, a probate timeline, or simply because you want the process resolved – we’re here to help.
Good Move buys inherited properties directly, with no estate agent fees, no chain, and no lengthy wait. We can make a cash offer within 24 hours and complete in as little as two weeks. Your legal costs are covered as part of the sale.
If you have questions or just want to talk through your options, our team is happy to chat. Get in touch or find out more about how Good Move works today.
