With the fluctuation of the property market being every present, it is always on the UK publics minds to assure they get the best deal when buying a property. Whether it’s a new build, buy to let or renovation property, there are various property investment ideas to select. However, a significant yet often overlooked segment of the property market are probate properties.
What is a probate property?
A probate property is the property left behind by someone who passes away, often the deceased’s residence. Merely renting or inhabiting a property without ownership does not qualify. Probate properties may vary in size, ranging from small to large, yet it remains crucial to ensure their proper distribution. Larger estates frequently feature a primary property that constitutes a significant portion of their value.
A probate property encompasses more than just the physical structure with its walls and roof; it extends to the entirety of the premises. This includes all furnishings, belongings, and any valuable items housed within, such as vehicles, antiques, jewellery, and those alike.
The probate property process
When an individual dies, their estate executor typically needs to acquire a Grant of Probate or Grant of Letters of Administration from the Probate Registry, granting them legal authority to manage and sell estate assets, including property.
The process of obtaining this grant can be lengthy, involving estate valuation and professional assessments, often revealing inherited homes as the most valuable assets. These probate properties are frequently sold below market value, attracting chain-free buyers seeking swift transactions. Executors prioritize quick sales, potentially enabling buyers to acquire undervalued homes.
Recognizing this untapped market, experts at Blanchards highlight probate properties as offering a more affordable path to homeownership. Research indicates that these properties typically sell for 19% below market asking prices, potentially saving buyers substantial sums.
Empty homes
In many cases, family members of the deceased are eager to sell inherited properties swiftly, even if they require significant repairs or updates due to neglect. The absence of a dependent purchase eliminates the need for a property chain, although the probate process itself can delay sales, particularly in the presence of will-related disputes.
Probate sales, characterized by prolonged timelines and potential property issues, may deter conventional buyers, resulting in reduced competition. However, prospective buyers should be prepared for substantial repairs and renovations, as executors often possess limited knowledge about the property’s condition and associated legalities.
Conveyancers advise thorough property inspections and scrutiny of essential elements such as boiler age, double glazing, and radiators for budgeting purposes. While probate houses may offer expansive gardens, they often require renovation efforts to restore them to optimal condition. Although more work, they often have more potential and are therefore a good investment. Do you know of a probate or empty property near you?
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