Get in touch
01306 500254
info@spring-developments.com
SELLING AN INHERITED PROPERTY
Matthew Power • Jun 22, 2020
As a cash buyer we are often approached by personal representatives and executors who are looking to sell inherited property and release equity quickly. Spring Developments have a history of purchasing a wide range of probate property often through direct contact with executors and beneficiaries. Our experience over the years has been of a wide range of situations and properties in variety of conditions including, derelict, unmodernised, fully furnished (hoarders) and with structural defects including subsidence, fire damage, damp, holes in the roof and so on. As cash buyers we are able to provide flexible terms, often able to exchange contracts prior to probate being granted and provide valuable assistance with probate fees, inheritance tax payments & other debts against the property.
Dealing with a deceased estate can be a stressful process and there are often challenges around obtaining the grant of probate (a legal document which provides authority to deal with the deceased persons assets). Time is a huge factor as this can often take a number of months with more complex cases taking over 12 months. Inheritance tax payments are due by the end of the six month period following the death and personal representatives (executors/administrators) will be required to pay this in order to obtain the grant of probate so if there are limited funds within the estate, making the initial IHT payment, obtaining loans to facilitate this and incurring interest on outstanding amounts until assets can be liquidised can add to the stress.
Selling a property on the open market often takes longer than most people think. Often family homes will attract interest from buyers moving up the market who need to sell in order to buy, however being involved with a chain of buyers and sellers makes It harder to maintain control of timescales, can lead to delays with increased risk where sales are cancelled within the chain. Whilst we can often exchange contracts before probate is granted a less experienced buyer and most certainly a buyer requiring a mortgage won’t take that risk or offer that flexibility and reassurance. Their purchase will normally be subject to a survey so worth considering this if the property requires work or has any evidence of structural issues. If a survey highlights issues with the property this could put the buyer off or cause delays where further investigations are carried out which could lead to renegotiation of the sale price and/or the buyer withdrawing.
There are many benefits to dealing directly with Spring Developments. The reassurance of a smooth and stress free sale to an experienced cash buyer and flexibility and assistance with financial arrangement is often a more attractive prospect rather than paying estate agents fees and having to accommodate strangers in your home for viewings, surveys, mortgage valuations etc. Not forgetting that there would be no guarantee of a sale or any way to determined what price you will achieve or how long it will take to conclude the sale.
As we have a great deal of experience purchasing probate property we have complied a few case studies to highlight some of our experience. If you are considering contacting us to discuss the sale of a property then please also have a look at the testimonials
on our website or our reviews on google.
Case Study 1
Terraced house. South Croydon
The Grant of Probate had taken about 18 month to come through before this property came to the market. It sat empty for most of this time followed by a further 6 months of marketing with an estate agent. 3 sales had been agreed but all of them had fallen fall through as the buyers all withdrew from the sale after the survey highlighted high levels of damp and water penetration in the property. After 2 years the executors needed the property sold but did not want the uncertainty of going to auction so we were contacted by a local agent who had recently sold us a similar property. We agreed terms and exchanged and completed the sale in only 7 days.
Case Study 2
Two unmodernised adjoining houses. Sutton.
Following the death of the owner we were contacted 7 months later by the executors who had not applied for probate believing that this would hold off Inheritance tax payments on the estate. Inheritance tax payments are due by the end of the six month period following the death. In addition to 3 tenants the owner had occupied part of the property himself and used a multitude of rooms, garages and external storage areas for items that he had hoarded over the last 50 years. We were able to agree terms with the executors which included dealing with the tenants and the clearance of the property with a quick exchange and access to funds to make an inheritance tax payment. The sale was then completed once probate had been granted, during which time we were able to make good use of time by evicting the non paying tenants and clear the property.
Case Study 3
Semi Detached unmodernised house. New Malden.
Requiring modernisation and fully furnished (including a broken down car in the garage) we purchase this property in a sold as seen condition before it came to market on the run up to Christmas. We agreed to purchase the property and handle the clearance ourselves and exchanged of contracts in only 4 days.
Case study 4
Semi detached house Twickenham.
This property had been empty for a number of years and at some point had squatters and was now boarded for security. The front and rear of the property was completely overgrown and full of rubbish. Internally the property had considerable damage caused by a number of holes in the main roof. Being exposed to the elements for a long period the property was damp & mouldy throughout, some rooms we unsafe to enter due to rotten floor joists and a number of ceilings and floors had collapsed. Unsuitable and unsafe for marketing, the sellers needed a professional buyer, so we agreed a sale and were able to exchange contracts within 48 hours.
Case study 5
Semi detached house arranged as 4 flats. Sutton
After inheriting a large period property that had been converted to 4 flats in the 1980’s without planning permission the owners had struggled for months to evict the tenants only to find out that as the property did not have planning for its current use they would need to convert the property back to a house or sell to a cash buyer. We were approached directly and were able to agree terms with the owner and purchased the property with a quick exchange and a 6 week completion period allowing time for the last tenant to leave.
Spring Developments are pleased to announce the completion of another luxury conversion project in Twickenham. We have three apartments available with prices starting from £425,000. If you are interested in further information or to arrange a viewing please do not hesitate to get in touch.
Our 6 flats in Sutton are now complete and all let. On this and every project we develop we invest a huge portion of our time researching the best products so that we can provide a bespoke development with a finish that is of an outstanding quality and built to last. Going back to brick and starting again is the norm for us so with exception for the buildings shell everything is brand new from the ground up. Our search for new projects is ongoing and we have funds available for multiple projects. If you are thinking of selling please do not hesitate to get in touch.
Our latest project in Twickenham is now officially under construction! Over the next 6 months we will be restoring this beautiful period building which dates back to 1905 to its former glory whilst converting it to 3 spacious luxury apartments. Having already restored and converted the building next door we are excited to be working on this project with the same contractors KWP Build By Design. The property is situated within a few hundred yards of Twickenham Station and early interest is anticipated so if this is an area you are considering purchasing in then please do not hesitate to get in touch to receive additional information about this property. Our approach to property acquisition is to seek out properties and buildings that have reach a point where they are no longer habitable and are in a derelict or totally unmodernised condition. We are cash buyers so in most cases can proceed with the purchase in a matter of only a few days. Following acquisition we will often seek some form of planning gain to enable us to repurpose the property to suit a wider range of occupiers but in all cases we approach the refurbishment with a view that we are looking to increase the life span of the building for many generations to come. Often this involves stripping the building back to the original brick work and starting from scratch introducing new floors, internal walls and modern fittings, renewing all timbers windows and drainage, whilst rectifying any structural issues along the way. This property was in a terrible condition and restoration will be a long process but buyers can be assured that apart from the brick shell and the beautiful stair case everything will be brand new and finished to our usual exceptionally high standard!
