The process of inheritance can be a challenging one, not only for the obvious emotional circumstances that a property has come into your hands but also because of the financial and bureaucratic considerations.
When someone dies who was the last named owner of a property, their estate is inherited either by the person or people named in the will or through a complex process of sharing known as intestacy.
The process can be difficult but estate agents in Surrey are here to help you through the process and here are some tips for selling an inherited property.
It Is Fine To Take Your Time
The process of executing a will can take quite some time, and it can be a while before you have the right to probate and can handle any part of the estate.
In most cases, a life insurance policy will pay off the rest of the mortgage when someone dies, but even if it does not, lenders tend to have a grace period where mortgage repayments are
suspended as everyone figures out what is owed and expected.
Know Which Taxes Apply
When someone inherits property, there are three main taxes that can apply.
The first is inheritance tax, which is payable if the entire combined value of the estate is worth over £325,000, which in most cases the vast majority of which will take the form of property.
Similarly, if you are given a property that you then sell on, you are likely to need to pay capital gains tax unless you move into it and then sell it as your main home, for example if you were previously renting.
Finally, if you rent out the property or it was part of a letting portfolio, once you start receiving the income from it you will need to pay income tax once it exceeds your allowance.