Inheritance: What to Do When You Get a Property
Finding out you’ve inherited a house can feel like a surprise gift and a headache at the same time. One moment you’re dealing with grief, the next you’re looking at deeds, bills and tax forms. The good news is that the process is straightforward once you break it down into bite‑size steps. Below we walk through the must‑do actions, from confirming ownership to deciding whether to keep or sell.
Confirm the legal ownership
The first thing you need is proof that the property now belongs to you. That usually means getting a copy of the will or court‑ordered letters of administration. If the will names you as the executor, you can apply to the Land Registry for a new title deed. If there’s no will, the probate court will issue an order showing the rightful heirs. Don’t skip this step – without a clear title you can’t sell, refinance, or even get insurance.
Deal with inheritance tax and other costs
Inherited property isn’t free of tax. In the UK, inheritance tax (IHT) is usually paid by the estate before the asset reaches you, but you may still owe Capital Gains Tax (CGT) when you sell. The good part is that the property’s market value on the date of death becomes your “base cost”, which can lower CGT later. Also, factor in ongoing costs: council tax, utilities, maintenance and possible mortgage payments if the house was previously financed.
Next, decide what to do with the house. If you plan to live in it, check whether you need to update the mortgage or apply for a new one in your name. If you want to rent it out, look into landlord responsibilities and needed insurance. And if selling looks best, start by getting a professional valuation – it helps you set a realistic price and avoid under‑selling.
Don’t forget to protect the asset during the transition. Change the utility accounts to your name, secure the property with new locks, and consider a landlord insurance policy if you’ll be renting. Small steps now save big headaches later.
Finally, think about long‑term planning. If you keep the house, include it in your own estate plan. Update your will, consider setting up a trust, and talk to a solicitor about the best way to pass the property to your heirs with the least tax impact. Planning ahead means your family won’t repeat the same scramble you faced.
Inheriting a home can be overwhelming, but by tackling ownership, taxes and future plans one step at a time, you turn a surprise into an opportunity. Need help with any of these steps? Our team at Pring Property Solutions is ready to guide you through the paperwork, valuations and legal advice so you can focus on what matters most.