Inheriting a property can be a very emotional experience. Alongside the practicalities of dealing with an estate, there may be memories attached to the property, family decisions to make and, sometimes, difficult conversations about what happens next.
Whether you have inherited a family home, or a rental property you may be wondering: Should we sell it, rent it or keep it? And where do we even start?
The good news is that you don't have to make every decision straight away, and you don't have to navigate the process alone.
First things first – give yourself time
When a property has been inherited following the loss of someone close, it is understandable that emotions can make practical decisions feel particularly difficult.
In most cases, there is no need to rush into deciding what to do with the property. The probate process needs to be dealt with first, and this gives you time to consider your options and seek the right professional advice.
If there are several beneficiaries, it is also important to have open conversations about what everyone wants to happen. Selling may be the most straightforward option, but you may decide that one family member would like to live in the property, or that keeping it as a rental investment makes sense.
The important thing is to make a decision that works for everyone involved.
Understanding probate
If you are unfamiliar with probate, you're certainly not alone.
Probate is the legal process that allows the executor of a will to deal with the deceased person's estate, including their property. Once probate has been dealt with and the necessary legal arrangements are in place, the property can be transferred to the beneficiaries and you can decide what you would like to do with it.
Your solicitor will be able to guide you through the legal side of the process, including any requirements relating to the property.
And if you're unsure about anything, ask questions. There is no expectation that you should already know how probate or property ownership works.
What are your options?
Once the legal side has been dealt with, there are generally three main choices:
🏡 Keep the property
Perhaps you have always loved the property and can see yourself living there, or maybe another family member would like to make it their home.
You may need to consider any outstanding mortgage, the cost of bringing the property up to date and whether the property is suitable for your circumstances.
🔑 Rent it out
An inherited property could potentially provide a regular rental income, particularly if you don't want to sell but aren't planning to live there yourself.
However, becoming a landlord brings responsibilities. You'll need to consider the condition of the property, legal requirements, insurance, ongoing maintenance and the practicalities of managing tenants.
If you're new to letting, speaking to a local lettings agent can help you understand whether renting the property could be a sensible option and what rental income it might achieve.
🏠 Sell the property
For many people, selling is the simplest option, particularly where there are several beneficiaries who would prefer to divide the proceeds rather than jointly own and manage a property.
The good news for homeowners in County Durham is that the local property market continues to show resilience. JW Wood's latest local market update reported average property values of around £138,000, with prices up 4.3% year-on-year.
That means it is well worth getting an up-to-date local valuation rather than relying on an old valuation, online estimate or what you think the property might be worth.
Getting the property ready to sell
An inherited property may have been someone's much-loved home for many years, so it is not unusual for it to need a little attention before going on the market.
You don't necessarily need to spend a fortune renovating it. In many cases, a good clean, decluttering and dealing with obvious maintenance issues can make a real difference.
You may also need to decide what to do with the contents.
This can be one of the hardest parts emotionally. Take your time going through belongings and don't feel that everything has to be dealt with immediately. Family members may want to keep particular items, while other things could be donated, sold or placed into storage.
Once you're ready, your estate agent can advise you on what work is genuinely worthwhile before marketing the property. Simple improvements and good presentation can help buyers see the potential of a home.
What about the value of the property?
One of the most important steps is getting an accurate, up-to-date valuation.
This is particularly important if the property was valued for probate some time ago. The figure used for probate isn't necessarily the price you will achieve on today's market.
At JW Wood, local knowledge is invaluable when assessing a property. County Durham is a diverse market, and values can vary significantly between different towns, villages and even individual streets.
A local agent can look at recent comparable sales, current buyer demand and the property's condition to give you a realistic idea of what it could achieve.
Don't forget the tax and legal side
Inherited property can have tax implications, including potential Inheritance Tax and Capital Gains Tax depending on the circumstances.
For example, if you sell an inherited property for more than its value when it was inherited, there may be Capital Gains Tax to consider. If you decide to rent the property out, rental income may also have tax implications.
Tax rules can be complicated and individual circumstances vary, so it is important to speak to a solicitor, accountant or qualified tax adviser for advice specific to your situation.
Your estate agent can help with the property side of things, but they should not be expected to provide specialist tax advice.
If the property is empty, don't forget about it
An empty property still needs looking after.
If the inherited home is unoccupied while you're deciding what to do, make sure it is appropriately insured and secure. You may also need to arrange regular checks, deal with maintenance issues and keep an eye on heating and utilities.
This can be particularly important if you live outside County Durham and the property is some distance from you.
Having a local estate or lettings agent you can rely on can make things considerably easier.
If you inherit with brothers, sisters or other family members
Sharing an inherited property can sometimes make decisions more complicated.
Everyone may have different ideas about what should happen – one person may want to sell, another may want to rent it and someone else may want to live there.
Try to have these conversations early and, where necessary, take independent legal or financial advice. The aim is to reach a decision that is fair to everyone and avoids unnecessary disagreements.
You don't have to do it all yourself
Perhaps the most important thing to remember is that you don't need to know all the answers.
There are professionals who can help with each part of the process – solicitors can guide you through probate and legal matters, accountants or tax advisers can advise on tax, and an experienced local estate and lettings agent can help you understand the property's value and your options for selling or renting.
At JW Wood, we understand that selling an inherited property isn't simply another house sale. There may be memories, family discussions and a great deal of emotion involved.
Our role is to make the property side of things as straightforward and stress-free as possible, while giving you honest advice about the local County Durham market.
Whether you're ready to sell, considering letting the property or simply want to understand your options, we're here to help – with no pressure and no obligation.
Your next step
If you've recently inherited a property in County Durham and aren't sure what to do next, why not arrange a conversation with your local JW Wood team?
A friendly chat and an up-to-date valuation could be the first step towards making a difficult process feel a little easier.
Sources from hoa.org.uk