Dealing with Probate When a Property Won’t Sell

Probate is the legal process of administering a deceased person’s estate, ensuring debts are settled and assets are distributed to beneficiaries. When a property is involved, it must either be sold or transferred to beneficiaries before probate can be concluded. 

However, if the property does not sell, complications can arise, delaying inheritance payouts and creating financial difficulties for those involved.

The Challenges of Selling a Probate Property

In some cases, a probate property may struggle to attract buyers due to market conditions, location, or the need for significant repairs. In the UK, the average time to sell a property is around 129 days, but probate properties can take even longer due to legal and administrative delays. 

If the property remains unsold, executors may find themselves in a difficult position, unable to distribute the estate’s assets while beneficiaries grow impatient for their inheritance.

Additional challenges include ongoing costs such as council tax, insurance, and maintenance, which must be covered until the property is sold. According to the Office for National Statistics, the average monthly cost of maintaining an empty home in the UK is approximately £500, which can quickly add up over an extended period.

Solutions for Accessing Inheritance Sooner

When a property remains unsold, beneficiaries may seek alternative financial solutions to access their inheritance. One option is a probate loan, which allows beneficiaries to receive an advance on their inheritance while waiting for probate to be finalised. This type of funding is typically secured against the estate and is repaid once the property is sold or the probate process is completed.

Another solution is bridging finance, which provides short-term funding to cover immediate financial needs. This can be useful if beneficiaries need their inheritance quickly or if funds are required for property renovations to make the home more marketable. Bridging loans are generally repaid once the property is sold, making them a flexible option for estates facing delays in the selling process.

Legal Considerations and Risks

While probate loans and bridging finance can provide immediate relief, it is important to consider the risks involved. Interest rates on bridging loans can be high, often ranging between 0.5% and 1.5% per month, making them an expensive option if the property remains unsold for an extended period. 

Additionally, these loans are typically secured against the property, meaning a forced sale may be required if repayment deadlines are not met.

Beneficiaries and executors should seek legal and financial advice before proceeding with these options. Consulting a solicitor or probate specialist can help ensure all parties understand their rights and responsibilities while minimising financial risks.

Conclusion

When a probate property does not sell, it can create financial strain and delay inheritance distribution. Probate loans and bridging finance provide potential solutions for beneficiaries who wish to access funds sooner, but they come with risks that should be carefully evaluated. Seeking professional advice and exploring all available options can help ensure a smooth probate process while protecting the financial interests of all involved.