Picture this: After an extensive and tiring search for a property, you eventually discover the ideal home that perfectly aligns with your requirements. However, the estate agent informs you that it’s a ‘probate property,’ leaving you perplexed.
Although you’ve come across this term before, you’re uncertain about its meaning and whether it could hinder your homebuying plans.
Allow us to provide you with a clear explanation.
What is probate?
When an individual passes away, their assets held solely in their name cannot be immediately sold or distributed. It is necessary to wait until the government grants ‘probate.’
Typically, the executors of the will initiate the probate process (with a slightly different procedure if there’s no will).
Once probate is granted, and after settling inheritance tax and debts, the executors can distribute the assets according to the wishes of the deceased.
Implications for buyers
It is common for executors to market a property before probate is granted. Thus, if you find yourself viewing a property during the pending probate process, rest assured that everything is being conducted legitimately.
The executors are acting under the expectation that by the time both parties are prepared to exchange contracts, probate will have been obtained.
While you cannot finalize the property transaction until probate is granted, you can make significant progress with the necessary paperwork in the interim.
Exercising patience may be necessary
There is a considerable amount of paperwork to complete and documentation to gather before the executor can apply for probate. After submitting the actual application, it typically takes between six to 12 weeks to receive probate (although precise timelines may be difficult to ascertain due to recent processing delays).
Asking the right questions
To gain a realistic understanding of the timeline involved, it can be beneficial to inquire about the progress of the executors in the process (consult with the estate agent). If the application has been lodged, there is a good chance that things are progressing smoothly. However, if the application has not yet been submitted, you may anticipate a lengthier waiting period.
Exercising sensitivity
In the event that a relative of the deceased is present during your property viewing, it is important to be sensitive. It is possible that you are touring their childhood home or a property of great emotional significance to them. If you have any inquiries, kindly direct them to the estate agent.
Advantages of probate properties:
Opportunity for renovation
If you are seeking a property to renovate, a probate property might be an ideal fit. It is likely that significant time has passed since any renovation work was last undertaken, allowing you to impart your personal touch on the home.
No onward chain
Undoubtedly, you have heard stories of individuals being entangled in complex property chains, where they are buying from someone who is simultaneously purchasing from another person, and so on. By opting for a probate property, you eliminate the presence of an onward chain, providing you with greater flexibility regarding completion dates and related matters.
If you’re looking to buy a new home, contact us today.
