If you and your siblings inherit a property together and you all get on well, then the selling process will be much more straightforward than if there are points of contention among you and your family members. Either way, you will all need to come to a unanimous decision about how and when you will sell the inherited property. There are many things to think about. And it can be challenging to deal with when you are also going through the grieving process. Various possibilities for selling the property are available to you and your siblings. So, consider all your options together to determine the best course of action.
Siblings’ Selling Options
When you decide to sell an inherited property, it can be a complex and lengthy process. When you have to make decisions with your siblings as well, the process can get even trickier. It is, therefore, best to begin by listing your various options. Selling the property and dividing the cash equally amongst all siblings is usually the simplest solution. However, all siblings will need to agree on that course of action. You will all also need to decide when to sell the property. Some siblings may be keen to sell immediately, while others may want to hang onto the home until the housing market is more favourable. But other selling options do exist. They include:
· One sibling buys out the others.
· One sibling sells their share whilst the others retain theirs.
Part-exchange is another possibility. That means you could trade in your inherited property when you buy another. The person you’re buying from will accept your inherited property as part-payment for the home you wish to purchase. There are pros and cons of part-exchange, and the situation can be complex when there are several siblings involved. But if you do decide to go with part-exchange, professional property selling companies can help you with the process.
Do you have to sell a property to pay inheritance tax?
In the UK, inheritance tax is due on any property valued at £325,000 or more. If the inheritors are the children of the person who has left the property, the threshold increases to £450,000. If the property exceeds that threshold and you need to pay inheritance tax, then your only option may be to sell the home to meet the liability.
Can one sibling force the sale?
Everyone has to agree to sell the inherited property. No one sibling is able to force the sale unless he or she is acting as the sole executor of the estate. In theory, siblings could sell their shares of the property, but it’s unlikely that you’ll find a buyer who is willing to invest in only one portion of a property.
Does your inherited property still have a mortgage?
If the home you inherit still has outstanding mortgage payments, the money owed will be factored into the probate calculations when settling inheritance tax. That will reduce any tax liabilities, but it does mean siblings will only own part of the property. If you and your brothers or sisters are in this situation, you will have to carefully consider what you want to do, as you and your siblings will be liable for the outstanding mortgage payments if you do not sell the property quickly.