PROBATE REGISTRY DELAYS AND HOUSE SALES
Sara Frost, Steve Bell, Michelle Forster & Alan Douglas
A question we are being regularly asked at the moment is how soon can a property be sold after a homeowner has died.
The answer depends on various factors including the time involved in in the Probate Registry processing the application for the Grant of Probate or Grant of Letters of Administration.
Currently the Probate Registry is quoting an anticipated timescale of 16 weeks for the Grant to be issued from the date of the application via their online portal. Occasionally it is issued more quickly but it is best to allow 16 weeks. If the case cannot be submitted via the online portal then it is advisable to allow at least an additional 8 to 10 weeks for a paper application to be processed.
If a full IHT400 Inheritance Tax is required (this will depend on the circumstances of the case) then there is an additional 4 weeks whilst HM Revenue & Customs deal with their aspect.
Another time element to be borne in mind is how long it takes to collate the financial information required to complete the application for the Grant. This can vary from a couple of weeks to a few months depending on the complexity of the finances of the person that has died.
It is of course possible to start marketing a property whilst the application for the Grant is being processed but it is important to make the estate agents aware that the sale is subject to the Grant being received so that the expectations of the buyers can be effectively managed.
If an acceptable offer is received then the conveyancing process can be progressed whilst the Grant is awaited but contracts won’t be exchanged until the Grant is received (technically it is possible to exchange contracts before the Grant is issued but we would strongly advise against it and if the buyers need a mortgage then it is highly unlikely the mortgage company would allow this).
In summary it is best to allow approximately 4 to 6 months before contracts can be exchanged on a sale. However, because every case will differ depending on the facts in is advisable for you to discuss this with a lawyer to get a more accurate estimate.