Understanding Probate
Selling the family home can be an emotional process at the best of times; however, selling a probate property of a loved one who has recently passed can be particularly distressing and the legal processes overwhelming.
At David Cosby, we have the unique benefit of being a firm of Estate Agents with legal expertise. This background in property law, coupled with our sensitive approach to all clients, has proved to be invaluable to executors who are dealing with the sale of probate property.
A little bit of knowledge about probate matters can help to relieve much of the anxiety and stress for those involved. It will therefore be a good idea for an executor of a will to gain a basic understanding of both the legal and selling processes involved. Our team have been looking after clients’ interests for over 20 years and we are always available to talk you through the procedures and help you formulate a plan of action.
What is a Grant of Probate, and Do I Need One?
A Grant of Probate is a type of Grant of Representation. It provides a person with legal authority to sell a property where they are not named on the title deeds.
If there is a Will in place, then only the executor’s named on this Will can apply for a Grant of Probate.
If there is no Will in place, then the closest living relative can apply for a Letter of Administration. This document is similar to a Grant of Probate, in that it gives a person legal authority to administer the estate.
For a surviving spouse who is named as Joint Owner on the title deeds a Grant of Probate or Letter of Administration will not normally be necessary.
How do I Obtain a Grant of Probate?
Obtaining a Grant of Probate will require a degree commitment that can be difficult especially during the difficult time of mourning. There are specialist law firms dedicated in dealing with Wills and Probate matters to help ease the burden; however, you should anticipate a degree of form filling and you will need to produce various documentation. The bullet points below give a step-by-step guide to some of the main processes:
-
Registration of the Death
As part of the Probate Application, it will be necessary to provide a death certificate and a copy of the deceased Will.
-
A Valuation or Market Appraisal of the Property
When filling in the Probate Application you will need to provide a value of the property being sold. This could be a formal RICS Red Book valuation from a Chartered Surveyor which will incur a fee of around £200 depending on the size of the property. An Estate Agent could also be approached to provide a ‘Market Appraisal’ which will suffice for the Probate Application and will usually be free. At David Cosby we would be happy to provide this service.
-
The Title and Deeds for The Property
These documents are important to establish whether there are any restrictions on the land or the property. If you are unable to find the paper copies of these documents and the property is registered, then we would be happy to obtain electronic copies for you through Land Registry. There is a small fee of approximately £3 per document. If the property remains unregistered, it is important to locate the original deeds and documents. Quite often these will be held for safe keeping by a solicitor.
-
Inheritance Tax
Unfortunately, any inheritance tax due must be paid before a Grant of Probate is issued. Most executors do not have the money to pay for this tax up front. Therefore, it is common to use a Direct Payment Scheme whereby the inheritance tax can be paid from the estate.
-
Completing the Application Form for a Grant of Probate
If you have decided not to use a solicitor or probate practitioner then it is possible for you to apply for a Grant of Probate online by going to Apply For Probate.
Alternatively, an application Grant of Probate can be made by post. If there is a Will in place then an application form PA1P will need to be completed and a copy of the form can be downloaded here PA1P Form. If there is no Will in place then an application form PA1A will need to be completed and a copy of the form can be downloaded here PA1A Form.
In most cases an application fee will also need to be paid and this is usually £273.
How Long Does It Take to Obtain a Grant of Probate?
A Grant of Probate can often take up 8 weeks for an online application or 12weeks for a paper application. This time could be longer depending on whether additional information is required and requested by the Probate Registry. We have seen clients applying for probate themselves and receive the grant within as little as two weeks, and a larger estate being handled by solicitors which took 20 weeks!
It will therefore be important to get the wheels in motion as soon as possible. An empty property can quickly deteriorate and reduce in value, and it is worth remembering that Vacant Property Insurance will be necessary if a home remains empty for longer than 30 days.
Do I Need a Grant of Probate Before I Can Market a Property for Sale?
It is not necessary to obtain a Grant of Probate before marketing a property for sale. In many cases, it may be desirable to put the property on the market when it is looking its best, perhaps in the spring or summer, whilst the probate matter is being dealt with, and the two can run in tandem.
That said, if you do achieve a quick sale, the purchaser is likely to be keen to exchange and complete and might not be willing to wait around for probate to be granted. If an estate is complex, sometimes probate can take months to resolve and in these cases, we would recommend obtaining probate before bringing the property to market. It is also much easier to market a property once a Grant of Probate has been obtained as all parties then have more certainty over the time periods whilst mitigating potential probate delays that could affect the chain.
What Should I Do Next?
Our dedicated team at David Cosby will be delighted to give you clear and up-to-date advice on probate property. We will help you to reach a decision on whether to market the property to achieve the best sale price, or alternatively keep the property as a rental investment through our lettings department. Either way, as a family run business with your best interests at heart, we will be on hand to provide a comprehensive personal service that cannot be matched by the larger corporate firms.
We hope you have found our article useful and informative. Our sales and lettings team here at David Cosby has legal and surveying expertise to ensure you receive the highest standard of service and the best professional advice on all your property-related matters. Whether you are renting, letting, buying, selling a property, or simply have a property-related question, please call us on 01327 361664.
