Inheriting a house leaves you with several options.
These range from moving into it to selling it after probate.
And more.
Read on to learn more.
Inherited property vs. probate
There is overlap between inherited property and probate property. And the two are often used interchangeably. But there is also an important distinction between them.
‘Inherited property’ states how a property was acquired. ‘Probate property’ is more specific in two main areas.
Time frame
The probate process usually takes between 6 – 12 months (on average).
‘Inherited property’ implies a property is or has undergone this. ‘Probate property’ implies it is currently undergoing it.
Conditions
During probate, several conditions apply. These include whether the property can be emptied, lived in, sold, etc.
By contrast, inherited property is the same as any other property. Its owners can do what they want with it (within the bounds of the planning permission).
Probate property also needs a valuation regardless of what’s happens to it next. Without it, an accurate valuation of an estate isn’t possible.
Inherited properties may need a valuation if they are being sold or mortgaged. But this isn’t necessary otherwise.
What to do with inherited property
Once a property has passed through probate, it’s up to the new owner what they do next.
Of course, this is presuming there is only one new owner. After all, many properties are inherited by siblings.
(In these cases, there should be an agreement on how to handle the property and divide proceeds.)
Both cases (solely inherited property or shared inherited property) provide three main options.
1. Live in it
For many inheritors, their property holds sentimental value.
The property and surrounding area alone might make moving into it worthwhile.
It might also offer a practical housing solution. This might be due to its size, location, layout or utilities.
The costs of running the home should also be considered.
Of course, this scenario pre-supposes one inheritor. If the property was left to multiple owners, it may need to be sold.
2. Sell it
Many people sell their inherited property.
After all, moving house can be time-consuming and stressful. Many especially want to avoid this after having undergone the probate process.
(One alternative is to use a cash buyer. This enables a faster, simpler sale than the open market.)
And if more than one person has a property share, it enables them to easily divide up the value.
3. Rent it out
Renting out property is a good way to get value from it.
The simplest option is to find long-term tenants. But if the property is in a popular tourist area, it can be rented out to tourists.
Switching between a buy-to-let and residential mortgage is also simple. So, inheritors can try out renting before switching to living in or selling the property.
4. Do nothing
It’s legal to own a property and keep it empty.
You must still pay council tax and general maintenance costs. Not letting your garden get overgrown is important, for example.
In the meantime, the property might increase in value. And it gives you time to consider whether you want to live in, rent out, or sell it.
