If you've inherited a UK property, you have three big decisions to make in this order: get probate, work out the tax, choose a sale route. Here is the honest 2026 playbook with realistic numbers.
Step 1 — wait for the Grant of Probate
You cannot legally sell an inherited property until probate is granted. The current timeline:
- Apply for probate: HMRC processing is typically 9–16 weeks in 2026 (worse in 2022/23 — has improved).
- **Apply online if estate value < £250,000 and no complicated trusts.
- Pay the £273 application fee (waived for estates under £5,000).
You can start marketing the property before probate is granted — most agents and auctioneers will list "subject to grant of probate". You just can't exchange contracts until it's through.
Step 2 — get a date-of-death valuation
You need a valuation as at the date of death for inheritance tax purposes. This sets your "base cost" for any future Capital Gains Tax.
- For estates likely under the IHT threshold, an estate agent's letter is usually fine (£0).
- For estates over £325,000 (or £500,000 if there's a residence nil-rate band), get a formal RICS valuation — £400–£700. HMRC accepts these without question.
- Three local agents' opinions in writing is the budget alternative.
Step 3 — work out the tax
There are two taxes to consider:
Inheritance Tax (IHT)
- Paid by the estate, not the inheritor.
- 40% on the value of the estate above £325,000 (or up to £500,000 with the residence nil-rate band, if passing to direct descendants).
- Spousal exemption: unlimited transfers to a spouse are IHT-free; their allowance can be added to yours.
- Must be paid within 6 months of death — usually from estate assets, sometimes by selling the property.
Capital Gains Tax (CGT)
- Paid by the inheritor when they later sell the property.
- Calculated on the gain between the probate (date-of-death) value and the sale price.
- For 2026: 18% (basic rate) or 24% (higher rate) for residential property.
- Important: if you sell quickly (within ~12 months), the sale price IS often treated as the probate value, so CGT is zero. This is one reason a faster sale route can be worth considering for probate.
- Annual CGT allowance: £3,000 in 2026/27.
Step 4 — choose your sale route
Three honest options, ranked by speed:
Option A — Cash buyer (we-buy-any-house)
- Speed: 7–21 days from offer
- Net: typically 70–80% of open-market value
- Best for: very poor condition properties, or where you need cash within a fortnight to pay IHT before HMRC's 6-month deadline.
Option B — Traditional auction
- Speed: 28 days from hammer to keys
- Net: typically 94–100% of open-market value — some auction houses charge sellers nothing, with the buyer's premium funding the auctioneer
- Best for: probate sales where you want to balance speed with a near-market-value net. Probate stock often sells well at auction because:
- Buyers expect to find a deal
- Investors are comfortable with condition-challenged properties
- 28-day completion suits executor timelines
- The legal pack format suits properties with patchy paperwork
- Trade-offs: the buyer pool is smaller and investor-led, and the hammer isn't guaranteed to reach your reserve. A well-presented property in a popular owner-occupier area may net more on the open market.
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Sale method comparison
Option C — Estate agent (open market)
- Speed: 4–6 months
- Net: typically 93–98% of asking, less 1–2% commission
- Best for: homes in good condition in popular areas where executors can afford to wait — this route reaches the full owner-occupier pool and often achieves the highest headline price.
- Trade-offs: for probate stock the back-and-forth surveys, mortgage delays and chain breaks can add 8–12 weeks of executor time, and around a third of agreed sales fall through.
The contents problem
Most inherited properties come with a lifetime of contents. Three approaches:
- Clear, then sell empty — the cleanest route. £400–£1,500 for house clearance. Speeds up viewings, looks better in photos.
- Sell with contents included — common at auction. Buyers expect this and price accordingly.
- Auction the contents separately — for valuable furniture, art, or collectables, a specialist auctioneer (e.g. Bonhams for antiques) can extract value before you sell the property.
Don't throw anything away until you've checked for:
- Title deeds in fire-proof boxes or safes
- Premium Bonds, savings certificates, share certificates
- Mortgage payoff details, pension paperwork
- Family documents, photos, letters — siblings will want first refusal
- Jewellery, watches, coins — even costume jewellery can be worth ~£100 at scrap
- Vehicle V5C logbooks
Common probate-specific issues
Joint tenancy vs tenants-in-common
- If the deceased was joint tenant, their share automatically passes to the survivor. No probate needed for that share.
- If tenants-in-common, the deceased's share passes via the will.
Mortgage on the property
- If there's a remaining mortgage, the lender must be informed within 7 days.
- Most mortgages have a "death" clause allowing the executor 6 months to repay or transfer.
- Selling at auction often suits because the lender is paid out at completion (28 days).
Disputed wills / contested estates
- A caveat against the will prevents probate being granted.
- You cannot sell while a caveat is in place.
- Mediation typically takes 3–9 months.
Realistic numbers — a worked example
A typical inherited 3-bed terrace in B17 (Harborne, Birmingham):
| | Estate agent | Traditional auction | Cash buyer | | --- | --- | --- | --- | | Open-market value | £320,000 | £320,000 | £320,000 | | Sale price | £310,000 | £308,000 | £240,000 | | Commission/fees | -£7,440 (2.4% inc VAT) | £0 | £0 | | Conveyancing | -£1,200 | -£1,200 | -£1,000 | | Net | £301,360 | £306,800 | £239,000 | | Days to completion | 120–180 | 28 | 14 | | Fall-through risk | 33% | under 5% | under 2% |
In this example the auction net edges slightly ahead of the estate agent because some auction houses charge sellers nothing — the buyer's premium funds the auctioneer — and the agent's commission offsets its higher sale price. The gap will be different for your property; a pristine home in a strong area can tip the balance back towards the open market. The £62k difference versus the cash buyer is the real cost of a 14-day completion.
When a cash buyer is worth considering
For most probate sales the discount is steep relative to the slower routes, but it can be the right call when:
- IHT deadline pressure — HMRC interest kicks in at 6 months from death, and a 7–14 day completion can pay the bill in time.
- Property is genuinely hard to sell — severe structural issues, asbestos, fire damage. Even then, it's worth getting an auction estimate first, as auction can sometimes net more.
- Family conflict — one executor needs out fast and the others agree to take the discount.