Anyone know about buying a probate property?

pie81

Hiya

hubby and I are off to view a house this evening. it's in our preferred area, nice sized rooms, south facing garden etc etc.

AND it's a LOT cheaper than similar properties around the area (though it does need a lot of work doing so possibly not that much of a bargain).

BUT it's a probate property, i.e. it belonged to someone who has died.

I am just wondering if someone can tell me the disadvantages and advantages of buying a probate house??

for example I would imagine there is less pressure on timing of completion as there is no-one living there and no upwards chain??

on the other hand I imagine it might be more difficult to negotiate on price since whoever has inherited doesn't "need" to sell quickly and can hold out?? (Or maybe they do need to sell if they need to pay IHT...?)

any questions I should ask or things to look out for?

thank you!

besonders1

on the other hand I imagine it might be more difficult to negotiate on price since whoever has inherited doesn't "need" to sell quickly and can hold out?? (Or maybe they do need to sell if they need to pay IHT...?)

depends how long its been on the market. The house I bought recently had been for sale over a year as it was over priced and the daughter of the old man who died was still paying the bills for an empty house so I got it a lot cheaper as I was very cheeky with a low offer.

The only disadvantages is that it may have structural problems and damp if it has not been lived in. I know my house needed a new boiler after one week of using it, even though it was sold with gas central heating in working order.

lincroft1710

As someone who sold a "probate" property a few years ago, I probably let it go for a bit less than it was really worth as I didn't want bother of looking after garden, making sure it was OK etc whilst empty. I preferred money in bank earning interest.

Some beneficiaries want/need cash asap, so deals are possible especially if property is/becoming neglected, despite apparently low price.

It is far better to buy somewhere cheaply because it needs work, than buy somewhere nicely decorated and modernised at full market price, which you then start altering as it's not quite your style.

Richard_Webster

Make sure they actually have got the grant of probate because they can't sell it without. Some people jump the gun and put the place on the market long before probate has been obtained and then there is a long delay while it is sorted out.

natters_2

it depends on the area you are buying in too - we are selling my FIL's house which is a probate property - we would like to sell asap as our council only give you 6 months of no council tax - after that full CT is payable with no deductions - there is also a small mortgage that has to be paid within 18 months of death - so you may find that the sellers want to sell fast, for reasons similar to my own.

abmaybe

There may be several beneficiaries looking to the sale of the house. In my experience, a house was in a lower cost part of the world but there was a high expectation on price as the executor lived in London.

Soot2006

We just bought one -- it was a hugely emotional sale. We negotiated a price that suited both us and the vendors, they continued maintaining the garden right up to completion ... With it being so emotional, they wanted to get the sale over the done with as quickly as possible and got a bit stressy when our mortgage offer took a while to arrive. In the end offer to completion took just under 6 weeks! No pressure, then!

BlondeHeadOn

I'm selling a probate property at the moment (my fathers), and quite honestly I now just want to sell it quickly so you may find they are willing to consider offers. I don't want my dad's house sitting empty once the colder weather starts, so the sooner it sells the better, I haven't obtained probate yet, but it's not long now.

There is no chain and no hold-ups except possibly waiting for probate to be granted, and probably not much hassle from the vendor either. I'd be quite happy if the buyers negotiated with me about some of the furniture as well - e.g. two very new leather sofas - as it would save me having to sell them!

So I'd say go for it (although I have a vested interest as well....:o)

BlondeHeadOn

Forgot to say: one other advantage is that the completion date is, as far as I an concerned, up to the buyer - it makes no difference to me really when the sale will finally complete so long as it doesn't take too many months. So no hassle of having to match up with others in a chain etc.

HTH

pie81

Thanks very much all - some very interesting stuff here.

We actually saw TWO probate properties yesterday - one where probate had been obtained and the house had been empty for 3 years, and one where probate had not yet been obtained and the beneficiaries were still living there (but wanted to sell).

Both properties were in a pretty awful state and would clearly need a LOT of work. I'm not convinced their asking prices are cheap enough to compensate for the cost and hassle (we'd have to live elsewhere) of doing the work.

But, given what is said above, it might be worth a very cheeky offer....

thanks all.

PS, if anyone can give me an idea of how much it would cost to have a 2000 sq ft victorian house totally renovated (new wiring, plumbing, plastering, the lot), in London, that would be very helpful!!

ILW

pie81 wrote: »

We actually saw TWO probate properties yesterday - one where probate had been obtained and the house had been empty for 3 years, and one where probate had not yet been obtained and the beneficiaries were still living there (but wanted to sell).

Do you scan the obits in the papers?