Enfield Estate Agent: 020 8342 0101Cheshunt Estate Agent: 01992 620 101Hertford Estate Agent: 01992 582 000
    Get a Valuation
    Register
    LogoLogo
    • Search
    • New Homes
    • Overseas
    • Contact us

    Our branches

    Enfield Town

    Our branch
    Meet the team
    Area Guide

    Cheshunt/Enfield Highway

    Our branch
    Meet the team
    Area Guide

    Hertford

    Our branch
    Meet the team
    Area Guide

    Looking for our Lettings Office

    Click Here

    Home/News/Your options when inheriting a property

    Your options when inheriting a property

    over 3 years ago
    Lettings
    Your options when inheriting a property

    Inheriting a property is not an everyday conversation topic, so it comes as no surprise that people have been turning to Google to find out what’s involved. Knowledge gaps were revealed in 2021 when Google Search Trends were analysed. The top eight most searched for property phrases included ‘power of attorney’ and ‘probate’, which had seen a 450% and 100% increase in enquiries, respectively.

    Whether your Great Aunt Rose has left you a house in her will or your family home is no longer needed, you may inherit a property at some point in your lifetime. Knowing what to do with it will depend on your own circumstances and if anyone else is involved. Here’s our guide if you find yourself with an unexpected property.

    Prepare for probate

    It’s a common misconception that if a will was made, the distribution of a deceased person’s assets can go ahead without intervention. In many cases – especially if the property owners were ‘tenants in common’ – a process called probate is needed before the wishes of the will are respected. 

    Probate is applied for by the next of kin or the will’s executor and once ‘grant of probate’ is granted, any property owned by the deceased can be dealt with. Generally, only those who were a joint property owner with the deceased – known as joint tenants – can bypass probate.

    Are you the sole owner?

    Before you make any grand property plans, you need to establish if you are the sole heir to the property or whether you now share ownership with other people, such as siblings. If it’s the latter, the property’s future needs to be a joint decision. If you’re the only beneficiary, you can start moving forwards.

    Move in yourself

    Inheriting a property may give you an instant accommodation upgrade, especially if you are currently living with family or are in rented accommodation. If the property is empty and it suits your circumstances, there is nothing stopping you moving in as the new owner.

    Sell up

    Sometimes selling an inherited property is the only option, especially if there are debts in the deceased’s estate, a large inheritance tax bill or if there are multiple new owners who can’t agree on the property’s future. 

    Selling an inherited property is one way to benefit from any equity. Remember, if the property is still mortgaged and this sum isn’t settled by a life insurance policy, proceeds from the property’s sale may go towards paying off the home loan. There may also be income tax to pay upon completion.

    Become a landlord

    One way of retaining an inherited property is to rent it out to tenants. As well as keeping ownership of an asset, there are opportunities to earn an income from the monthly rent and the possibility of long-term price appreciation. You’ll also have the option of moving back into the property in the future, as long as tenants are given the correct amount of notice.

    It’s worth noting the tax implications of becoming a landlord. As well as paying income tax on any rental income, you’ll have to pay capital gains tax on any profit you make if you sell the property at a later date. 

    Inheriting a buy-to-let

    If you’re left a property that has been used as a buy-to-let, the tenant status will dictate what happens next. If tenants are still in place, they have the legal right to stay in the property in line with their legal notice period. 

    If the buy-to-let is empty, there is nothing stopping you from selling the property. If it’s inhabited, you’ll have to wait for the renters’ tenancy agreement to end or start the eviction process (if there are qualifying circumstances) before selling up. Alternatively, you could take over as the landlord.

    Inherited properties & first-time buyers

    The picture is slightly more complicated when a first-time buyer inherits a property. For instance, someone saving for a deposit using a LISA (a lifetime ISA) would automatically become a homeowner if they inherited a property. As a result, they would lose their first-time buyer status by default and have to pay a 25% withdrawal charge before accessing the money in their LISA. 

    It’s worth noting that other first-time buyer assistance packages may not apply if a purchaser has inherited a property, such as the Government’s Help to Buy scheme and mortgages specifically created for first-time buyers.

    The second property trap & stamp duty

    Existing property owners who keep hold of an inherited property will be classed as someone with ‘additional properties’. The same rule even applies to first-time buyers who inherit a property but who have yet to purchase their own home and this has stamp duty ramifications.

    First-time buyers who retain an inherited property will no longer qualify for the zero stamp duty on the first £300,000 of their initial property purchase. In addition, all additional home purchases incur an extra 3% on top of basic stamp duty rates, and this applies to everyone who owns more than one property. 

    If it looks like you may inherit a property in the future and you’d like to take advice now, please get in touch.

    Share this article

    More Articles

    More than half of under 34s hope to become a landlord

    More than half of under 34s hope to become a landlord

    Published 15 days ago

    Younger Millennials (born between 1991 and 1996) and those in Generation Z (1997-2012) still see a future in property investment. That was the surprising finding of a new survey of 2,000 UK adults conducted by Opinium on behalf of Market Financial Solutions.

    Read More
    A tenant’s guide to the Renters’ Rights Bill

    A tenant’s guide to the Renters’ Rights Bill

    Published about 1 month ago

    The Renters’ Rights Bill has taken another step towards becoming law. With no major amendments expected, it’s now that tenants should take notice of the Bill’s contents.

    Read More
    Garden etiquette for tenants this summer

    Garden etiquette for tenants this summer

    Published 3 months ago

    When you become a renter, you’re expected to behave in a ‘tenant like manner’ and that extends to outside spaces as much as inside the home. If in any doubt as to what that means, you can refer to your tenancy agreement. It should list the specific garden jobs you’re responsible for, and what your landlord should maintain. If there’s scant detail, contact us and we can obtain written clarification for you.

    Read More

    Sign up for our newsletter

    Subscribe to receive the latest property market information to your inbox, full of market knowledge and tips for your home.

    You may unsubscribe at any time. See our Privacy Policy.

    Back to Home

    Our Branches 

    Enfield Estate Agent
    Cheshunt Estate Agent
    Hertford Estate Agent

     Departments 

    Lettings
    Overseas
    New Homes

    Contact Details 

    17 College Road,
    Cheshunt, EN8 9LS
    t: 01992 620 101
    Email us

    NAEA
    OnTheMarket
    RightMove
    ThePropertyOmbudsman
    Logo
    © 2025 Lanes Property
    Privacy Policy|Terms & Conditions|Cookie Policy|Complaints Procedure|CMP Certificate
    Powered by