Inheritance Guide

What happens to a house when the owner dies?

Losing a loved one is overwhelming, and working out what happens to their property can add confusion and stress to an already difficult situation. This guide walks you through what happens step by step, from the moment of death through probate to the eventual sale or transfer of the property.

If you have inherited a property and need to sell it, we are here to make that process as simple and stress-free as possible.

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The Process

What happens step by step

When a property owner dies, there is a set process that must be followed before the property can be sold or transferred to the people who inherit it.

Securing the property

The first priority is securing the property. This means ensuring it is locked, insured, and protected from damage. If the property will be empty, inform the insurance company - standard home insurance policies may not cover unoccupied properties. The executor or next of kin should also redirect post, cancel any services that are no longer needed, and make sure the heating is kept on during cold months to prevent pipe damage.

Establishing who inherits

If the deceased left a valid will, the will specifies who inherits the property and names an executor to manage the estate. If there is no will, the intestacy rules determine who inherits, and someone (usually the next of kin) must apply to the court to become the administrator of the estate. In both cases, the person responsible for dealing with the estate is called the personal representative.

Applying for probate

Unless the property was jointly owned as joint tenants, a Grant of Probate (with a will) or Letters of Administration (without a will) is needed. This gives the personal representative the legal authority to deal with the property and other assets. The application involves valuing the estate, completing tax forms, and submitting the application to the Probate Registry. This typically takes 8 to 16 weeks.

Paying any Inheritance Tax

If the total estate exceeds the Inheritance Tax threshold (currently the nil rate band of 325,000 pounds plus the residence nil rate band of 175,000 pounds if the home passes to direct descendants), IHT must be paid. IHT on property can sometimes be paid in instalments over 10 years, but it is often simpler to sell the property and pay from the proceeds. HMRC must receive at least some of the IHT before issuing the grant of probate.

Selling or transferring the property

Once probate is granted, the personal representative can sell the property or transfer it to the beneficiaries. If selling, the property can be marketed before probate but cannot legally complete until the grant is received. The personal representative has a duty to achieve the best reasonable price. Once sold, the proceeds are distributed to the beneficiaries after paying any debts, taxes, and administration costs.

Updating the Land Registry

Whether the property is sold or transferred to a beneficiary, the Land Registry must be updated to reflect the new ownership. If sold, the buyer's solicitor handles this as part of the conveyancing process. If transferred to a beneficiary, the personal representative completes a form to register the beneficiary as the new owner. There is no fee for registering a transfer from an estate to a beneficiary.

Important Considerations

Things to be aware of

Empty property costs

An empty property still incurs council tax (often with a premium after 12 months), insurance costs, utility bills, and maintenance expenses. These costs add up quickly, which is why many families choose to sell the inherited property promptly rather than leaving it empty for extended periods.

Insurance requirements

Standard home insurance may not cover an unoccupied property. You may need specialist empty property insurance, which is more expensive but essential. The executor has a duty to keep the property insured. If the property is damaged while uninsured, the executor could be held personally liable by the beneficiaries.

The executor's duties

The executor must act in the best interests of all beneficiaries. When selling, they have a duty to achieve the best reasonable price. They must maintain the property, keep it insured, and act impartially between beneficiaries. Executors can be held personally liable if they fail in these duties.

Multiple beneficiaries

If the property is left to more than one person, all beneficiaries must agree on what to do with it. Disagreements between siblings about whether to sell, rent, or keep the property are common. If agreement cannot be reached, any beneficiary can apply to the court to force a sale under the Trusts of Land Act 1996.

Debts and mortgages

Any debts secured against the property (such as a mortgage) must be dealt with. If there is a mortgage, it must be repaid from the estate unless a life insurance policy covers it. Unsecured debts may also need to be paid from the estate before beneficiaries receive their share.

Tax implications

Inheriting a property can trigger Inheritance Tax on the estate, and selling it later can trigger Capital Gains Tax on any increase in value above the probate valuation. Understanding the tax position early helps you make better decisions about whether and when to sell.

Need to sell the inherited property?

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Frequently Asked Questions

Your questions about inherited property answered

Here are honest, straightforward answers to the questions families ask most often about what happens to a house when the owner passes away.

When someone dies, ownership of their property does not immediately transfer to the beneficiaries. If they left a will, the property becomes part of their estate and is managed by the executor named in the will. If there is no will, the court appoints an administrator to manage the estate under the intestacy rules. During this period, the property is legally held by the personal representatives (executor or administrator) on behalf of the estate. The beneficiaries do not become legal owners until the property is formally transferred to them after probate is granted and the estate is administered.

If someone dies without a will (known as dying intestate), the intestacy rules determine who inherits. For married couples or civil partners, the surviving partner typically inherits the entire estate if there are no children, or the first portion of the estate plus personal possessions and a share of the remainder if there are children. If there is no surviving spouse or civil partner, the estate passes to children equally, then to other relatives in a set order: parents, siblings, half-siblings, grandparents, aunts and uncles. If no relatives can be found, the estate passes to the Crown. An administrator must apply for Letters of Administration to deal with the estate.

It depends on how the property was owned. If the property was held as joint tenants (the most common arrangement for married couples), the deceased's share automatically passes to the surviving joint owner through the right of survivorship. This happens outside the will and probate process. If the property was held as tenants in common, the deceased's share forms part of their estate and is dealt with according to their will or the intestacy rules. The surviving co-owner keeps their own share but does not automatically inherit the deceased's share. Checking the title register at the Land Registry will confirm how the property was held.

In most cases, yes. If the deceased owned property solely in their name, a Grant of Probate (if there is a will) or Letters of Administration (if there is no will) will be needed to sell or transfer the property. The Land Registry will not transfer ownership without seeing the grant. There are limited exceptions - for example, if the property was jointly owned as joint tenants, the surviving owner can have the property transferred without a grant. But for solely owned properties, probate is almost always required before the property can be sold or transferred to beneficiaries.

There is no legal time limit for how long a property can remain in a deceased person's name. Some properties remain registered to deceased owners for years. However, there are practical reasons not to delay. While the property stays in the deceased's name, it cannot be sold or remortgaged. Council tax and insurance must still be paid. The property may deteriorate if left empty. Executors have a duty to administer the estate within a reasonable time (the executor's year gives 12 months before beneficiaries can challenge the pace). Delaying can also create complications if property values change significantly.

If the deceased was selling their house and had not yet exchanged contracts, the sale has not yet become legally binding and will need to be restarted by the personal representatives after probate is granted. If contracts had been exchanged but completion had not yet taken place, the sale is legally binding and the personal representatives must complete it. The buyer may need to wait for probate to be granted before completion can happen, but the contract remains enforceable. In either case, the personal representatives step into the deceased's shoes and carry on with the transaction.

The mortgage does not disappear when the owner dies. The property remains subject to the mortgage, and the lender retains their security over it. In many cases, a life insurance or mortgage protection policy will pay off the outstanding mortgage. If there is no insurance, the mortgage must be repaid from the estate - either from other assets or from the proceeds of selling the property. If the property is inherited, the beneficiary may be able to take over the mortgage (subject to the lender's agreement) or remortgage in their own name. The executor should notify the mortgage lender of the death as soon as possible.

We Understand This Is a Difficult Time

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