Buying a Probate Property: What Buyers Need to Know
Picture this: After a long and exhausting property search you finally find the home thatās just right for you. But then the estate agent mentions that itās a āprobate propertyā and youāre left scratching your head.
While itās a term that youāve heard before, youāre not entirely sure what it means and if it could scupper your homebuying plans.
Well, let us explain.
What is probate?
When a person dies, the assets that they owned in their sole name canāt immediately be sold off or distributed. Itās a case of waiting until the government has granted āprobateā.
Usually, itās the executors of the will that apply for probate (if thereās no will thereās a slightly different procedure).
Once probate has been granted (and inheritance tax and debts have been paid) the executors can distribute assets according to the deceased's wishes.
What does it mean for a buyer?
Itās common for executors to market a property before probate is granted. So if you find yourself viewing a property where probate is pending, itās all above board.
The executors are acting in the expectation that by the time both parties are ready to exchange contracts, probate will have come through.
You canāt complete a property transaction until probate has been granted, but you can get much of the paperwork sorted in the meantime.
You might have to be patient
Thereās quite a lot of paperwork to be done, and documentation to find, before the executor can file for probate. And once the actual application has been lodged, it can take between six to 12 weeks to be granted (itās tricky to be precise because there have been processing delays recently).
Ask the right questions
To get a realistic idea of timescale, itās useful to find out how advanced the executors are in the process (discuss this with the estate agent). If the application has been lodged, then thereās a good chance things are ticking along nicely. If the application hasnāt gone in, you may be in for a longer wait.
Be sensitive
If by some chance a relative of the deceased is present when you view the property, be sensitive. It may be that youāre viewing their childhood home or a property that has a lot of emotional significance to them. If you have questions, direct them to the estate agent.
Benefits of probate properties
Renovation opportunity
If youāre looking for a doer-upper, a probate property might suit your needs. It may have been some time since any renovation work was carried out so you can put your own stamp on the home.
No onward chain
Youāve obviously heard about people getting caught up in complicated chains because theyāre buying off someone who is buying off someone else and so on. With a probate property there is no onward chain so you might have more flexibility regarding matters like completion dates.
If youāre looking to buy a new home, contact us here at Allen Residential on 01761 412 300 today.
