What To Do When You Inherit A Property

Inheriting a property can feel a bit overwhelming, especially since, by definition, the inheritance comes along with mourning. With that in mind, here is some guidance on how to approach the situation.

Executor or Beneficiary

It is important to distinguish between the executor and the beneficiary from the outset.

If you are the executor, it is your responsibility to take care of the deceased’s assets during the probate process. You may find it easier to complete the necessary tasks if you share the responsibility and work with relevant professionals.

If you are only the beneficiary and not the executor, you do not have any formal duties regarding the management of the property during probate. However, you can offer assistance to the executor, especially if it is in your interests to do so as the person who will ultimately inherit the property.

Make sure that any actions you take are agreed upon with the executor in advance. Clear role separation helps avoid misunderstandings and reflects best practices in the probate process.

Home Loan and Insurance

Mortgages are issued to named individuals. Therefore, you cannot “accidentally” inherit one (there are some “generational mortgages”, but those are niche products and a separate issue); the amount owed to the lender, however, must be settled in some way before ownership can be transferred.

What this means in practice is that either the mortgage must be paid off with life insurance or other funds from the estate, or the beneficiary must take out a mortgage in their name and buy the property from the lender for the amount outstanding on the mortgage.

“Other funds” from the estate might include savings, investments, or assets that can be liquidated to cover what is owed. For example, insurers typically release funds within about 14 days once the death certificate is lodged, and cash held in an estate can sometimes be accessed to settle debts soon after probate begins. (Dealing with the estate of someone who’s died: Settling debts and taxes, 2024) Factoring in these time frames and amounts can help you plan your next steps more confidently.

It’s helpful to understand the typical probate timeline so you know what to expect. The probate process in the UK usually takes between 6 and 12 months to complete, but it can be quicker or longer depending on the estate’s complexity. Some key milestones include gathering the necessary documents (such as the death certificate and the will), applying for probate (which can take a few weeks for approval), settling any debts (including mortgages and taxes), and finally sharing out the estate among the beneficiaries. Having a sense of these steps and their usual duration will help you set realistic expectations and plan as you manage the inheritance process.

Another option is to sell the property, repay the loan, and have the person or beneficiaries who technically inherited the house receive the profit. i.e., the surplus funds after the loan and any outstanding taxes are paid.

The UK has a high homeownership rate, and mortgage lenders have experience dealing with challenging circumstances with compassion. However, what can be challenging for the vendor (seller) is when a purchaser is in a property chain and needs to sell their existing property before settling on your property, which can delay settlement and result in the funds being paid to the beneficiaries of the will. Property chains are worth knowing about,t so you can make an informed decision when needing to sell a house as soon as possible.

Pay Tax Owed to HMRC

In principle, any Inheritance Tax that’s owed should be paid within 6 months of the deceased’s death. If the amount owed to HMRC remains outstanding after this time, interest will be added to the amount. However, it’s unlikely they will start threatening to beat down your door and haul you away to prison if you need a bit of extra time to complete probate.

If you think you will need more time or want to discuss an instalment plan, it is a good idea to contact HMRC as early as possible. Here is an example of what you might say if you call or write: I am awaiting probate and would like to request an instalment plan for the estimated amount of £X. Using a straightforward script like this can help make the process feel less daunting and open up the conversation with HMRC sooner rather than later.

HMRC knows full well that nobody inherits anything until they get their money, so they can afford to be a bit flexible here, albeit at a price.

Type of Home Insurance

Yes, when you inherit a property, you will also need to get home insurance, and there are many policies for the property’s use, including if you leave it empty.

Unoccupied insurance

Insurance is usually required should your inherited property be unoccupied for more than 30 days. To proceed with this insurance, you will need to inspect the property every 7 days and ensure the home is in good condition and well-maintained.

Second Home insurance

If you already own a home and the inherited home is your second home, consider a second-home insurance policy.

Landlord insurance

Landlord insurance policies are suitable for renting out the inherited property, covering property damage and loss of rent.

Use an insurance broker to guide you on the type of policy and from which provider.

Final Thoughts

Remember that once the property is yours, you gain new powers and control over it, allowing you to make decisions and shape its future in ways that suit your needs and goals.

Regardless of whether you decide to live in the property, sell it, or rent it out, ownership gives you agency to manage and care for your new asset. This does come with some important responsibilities, too—at a minimum, you’ll need to take reasonable steps to ensure the property does not become a hazard to others.

Protecting your investment and supporting your plans can help you make confident, proactive choices.

If you live in the property full-time or rent it out, this is unlikely to be an issue, but if the property is only used for part of the year, e.g., as a holiday home, then you may need to think carefully about how to secure it when you are not using it.