It is common for family members to inherit property, especially where a family member has passed away whilst still living in or owning their home. The same also applies to any other properties they have owned on an investment basis. Due to the nature of lives and work commitments, family members can be spread across the country and even the world, and therefore it is not always practical, nor the preferred option for a family member to move into the property of their deceased relative. At an understandably difficult time, with so many things to deal with, it can be challenging to know what rights surviving family members have over a property and what is the best thing to do with a property, be it selling through property auctions etc? In this article, we ask one of our Conveyancing Solicitors for a guide on how to sell an inherited property?
Step One: Establish the Facts and Legal Ownership of the Property
There are two main questions about a property, which dictate the direction needed to be taken when it comes to what to do with a property.
The first question is: Is the property registered with the Land Registry? Since 1990, it has been compulsory for all land being conveyed (bought, sold or transferred) to be registered with the Land Registry. Therefore, there is a process that all Conveyancing Solicitors follow when dealing with property to ensure this registration is maintained and new owners details are transferred to the Land Registry title on completion of a property sale/purchase. Due to the time since this Compulsory Registration came into force, the majority of property is now registered at the Land Registry, with its own title number. If a property has been in the same family, or with the same owner since before 1990, there is a chance it could still be unregistered and therefore the first step would be to consider whether to sell the property as an unregistered property, or in some cases, more preferrable, to carry out Voluntary First Registration of the property. This latter process involves you employing a conveyancing solicitor to gather all the property deeds and ownership details and carry out the registration process for you.
The second question is: Who owns the property and how? Depending on individual circumstances and advice given at the time of purchase, there are different ways in which property may be owned. If a property is owned in a sole name and that individual has passed away leaving a Will, clearly setting out beneficiaries then the process of selling that property is much more straightforward. In cases where properties are owned in more than one name, it can become more complicated. Where a property is owned in joint names as joint tenants, something known as survivorship exists and a property title is automatically passed to the surviving party. In a joint tenancy arrangement, the surviving party automatically gains full rights of ownership to a property in the event the other party passes away. If a property is owned as Tenants in Common, it can be more complex as the deceased party’s share of the property passes to their estate instead of the surviving party. It is then distributed according to either a Will or following intestacy rules. You can also have a situation where a property has been owned by a couple as joint tenants, one party has passed away some years previously and the surviving party then passes away some years later, and the property is still listed at the Land Registry in both names. In this situation, death certificates of both owners may be required by the Conveyancing Solicitor.
Once you have established if the property is registered, who owns it and how, and therefore who has a legal right to sell the property you can then move onto a process of actually selling the property.
Step Two: Valuation and Market Research
Before selling a property, it is recommended that you get a valuation and conduct your own research into the options for selling agents, online agents, auctions etc. Different agents may value the property differently. You should also consider the condition of the property and whether any works or modernisation is required. Local agents should also understand the market in the local area. Who is buying in property? What state are they buying property in? For example, is the property in an area popular with investors who are looking for a property to pick up at a lower price and do the work themselves, or is it in an area where people are looking for properties that are in a high standard and ready to move straight into.
Step Three: Clearing the Inherited Property
One thing which may of our clients find the toughest when selling an inherited property is clearing the property. In many cases, properties have been lived in for many years, it may be surviving family member’s childhood home full of memories, or it may be that the individual has not been able to keep the property in a good condition due to ill health or age. There are House Clearance companies who will handle all of this for you and some auction companies will take and sell properties, sold as seen. Whatever condition the property is in and also your relationship to the property, you should allow yourself time to make the best decision about what to do with the property and any belongings.
Step Four: Marketing and Selling
Once cleared and ready for sale, you will need to choose the best method to market and sell the property and employ the relevant professional to help with this where required. It can take time to sell a property, and this can be affected by location and also condition of the property. You may choose to carry out your own viewings or pass this onto the selling agent.
Step Five: Legal Matters and Completion
Once you have a buyer for the inherited property, you should instruct a Conveyancing Solicitor, to carry out all the legal formalities for you. Take time to talk to different solicitors about the property and how they can help make the process easier for you. Your conveyancing solicitor will complete all formalities and distribute sale funds between the relevant beneficiaries in accordance with the Will.
What do I do if I think the property has an outstanding mortgage?
Your Conveyancing Solicitor will be able to check the Land Registry to establish whether the property still has a mortgage charge registered against its title and also confirm the outstanding amount and obtain redemption information directly from the mortgage lender. They will then complete the relevant formalities to ensure that mortgage is redeemed and the charge removed before the property is transferred into the new owners names.
In Summary:
At Express Conveyancing, we understand the different stages that come with selling a property someone has inherited. We have a wide range of experience in handling all different types of properties and different individual circumstances meaning no matter what is thrown up as the sale unfolds, we are best placed to help you navigate this process. Our friendly and understanding team are on hand to provide a quote and to put your mind at rest. Contact us on 0800 799 9892 for an informal chat or get in touch via email on hello@express-conveyancing.co.uk
