Inheriting a property from a family member or parent can be an emotional experience. During periods of loss, the last thing you want to think about is the inheritance side of things. However, evidence has shown that at least 36% of people will inherit property during their lifetime and 70% of these people wouldn’t want to live in the properties they inherited. So, what do we do with them? Do we keep them and rent them out to get an income? Do we move into them? Do we renovate them and sell them? Or do we sell them as they are?
Although these properties are left as a gift, they often feel more of a burden. Keep reading below for some advice on what you should do next after inheriting a property:
Inheriting property can become even more complicated if the property is left to more than one person. If you are sharing the inheritance, then you will have to come to a joint decision on what to do with the property. Whatever you choose to do it has to be agreed by everyone.
The process of transferring a deceased estate and confirming the will is known as probate. If there isn’t a will or if it’s contested, then it can take longer to complete and be less straightforward. It usually takes 6-8 weeks for a grant of probate to arrive.
It may be cheaper to sort out the inheritance without hiring a lawyer; however, it’s always a good idea to keep things legal and remain professional. Hiring a lawyer will help avoid problems in the future. If you choose to keep the property you will need to find out if there’s any money owing on it as you’ll be expected to keep up the mortgage repayments. You should also register the property in your name.
Should You Sell or Rent?
Over 50% of people who inherit property choose to sell it. Most of these people use the money they earn as a stepping stone to finding a property of their own. Selling a property after a death can be difficult and emotional. You may want to keep the property for sentimental reasons or you may want to sell it as fast as possible.
Joint inheritance is great as long as everyone has the same opinion on what to do with the property. Knowing where everyone stands and what their opinions are in advance is important.
You may choose to rent the property out instead of selling it. This could provide you with a steady income and it can be easily split between inheritors. If you don’t want to sell or you’re not in a rush to sell, then this could be the perfect solution. Remember that you may have to update the property before you can rent it out.
Renovating the Property
30% of people who inherit properties choose to renovate them before selling them. It can be incredibly hard to renovate a property that was owned by a loved one which is why so many people choose to sell the house as is. Selling a house as is can have a number of advantages, including saving you time and money. Making large changes to a property will be time consuming, costly and can cause problems between inheritors. However, when renovations are done well they can add value to the property.
After inheriting a property, there are a number of things you need to think about including whether to keep it or sell it and whether to do it up or sell it as is. Whatever you decide, it’s important to make sure that you and any other inheritors agree on the steps being taken.