Picture this: After a long and exhausting property search you finally find the home that’s just right for you. But then the estate agent mentions that it’s a ‘probate property’ and you’re left scratching your head.
While it’s a term that you’ve heard before, you’re not entirely sure what it means and if it could scupper your homebuying plans.
Well, let us explain…
When a person dies, the assets that they owned in their sole name can’t immediately be sold off or distributed. It’s a case of waiting until the government has granted ‘probate’.
Usually, it’s the executors of the will that apply for probate (if there’s no will there’s 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.
It’s common for executors to market a property before probate is granted. So if you find yourself viewing a property where probate is pending, it’s 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 can’t complete a property transaction until probate has been granted, but you can get much of the paperwork sorted in the meantime.
There’s 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 four to six months to be granted. You can find more information on probate here.
To get a realistic idea of the timescale, it’s 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 there’s a good chance things are ticking along nicely. If the application hasn’t gone in, you may be in for a longer wait.
If by some chance a relative of the deceased is present when you view the property, be sensitive. It may be that you’re 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.
If you’re 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.
If you’re looking to buy a new home, contact us here at Liberty Blue today.