Probate/Selling House/Council Tax

otb666

I just thought I would vent a bit as when we wanted to market deceased parents house the EA would not market it until Probate had been granted. Probate only took a week and we thought great at the time but in the current selling climate with buyers further down chain dropping out right before exchange we are now having to pay council tax and this will double shortly. As these type of houses are typically top of chain it seems to me we could have been better off holding off doing probate and listed property so council tax was not due. When Probate is granted you have 6 months to market and complete process before council tax kicks in and then 6 months and they charge 100% premium. It would have been better if we had held off obtaining probate and thus saved us £500 per month.

Keep_pedalling

You could not sell without probate so I don’t see how delaying that would help, if it is taking you over a year to sell without early probate why would it take less time if you started selling later?

Grumpy_chap

Waiting for probate until doing what?

No one will offer on a house awaiting probate.

In the grand scheme of things, a few months of CT pales into insignificance. The CT is paid by the Estate of the deceased.

otb666

KP you would have less council tax to pay as there is a period between death and probate when there is no council tax Then 6 months from Probate you have to start paying Council tax then further 6 months you have to pay double council tax.

GC It reduces the capital in estate by £500pm which together with insurance utilities weekly checks with sales falling through at last moment costs mounting up We are 8 months along and no end date in sight. We have to also arrange boiler service again. We accepted a low offer thinking this would speed it up but chain failed so a bit fed up with it all now. Plus market really stalling now and prices dropping.

Keep_pedalling

https://forums.moneysavingexpert.com/discussion/comment/82022160#Comment_82022160

I realise that, but your issue is the length of time to sell, what makes you think it would take less time to sell if probate had taken longer and you had started to sell the property later? The selling clock only starts ticking once you have probate anything prior to that you can’t sell and you have all the other costs associated with an unoccupied house dragging on longer.

SanMiguel80

I was granted probate only this week for my mother's house after an 8 month wait. The benefit was it gave me time to clear the house of possessions. After the house was cleared the local EA recommended to put it on the market before probate was issued, but would advise any potential buyers of this. Although I could accept offers (there were none), I just wouldn't be able to exchange contracts until probate was granted.

If you were granted probate just a week after application, perhaps the EA thought you were trying to market the property too soon after application for probate (these can take months in many cases)

The cost of the CT should come out of the estate, if there is cash in bank from estate then use that to pay CT. If you don't want to pay CT then reduce house price for quick sale, if you want max price then pay the CT. One option will outweigh the other. You don't say if you are the executor or a beneficiary? If you are a beneficiary, then anything to pay now you will get back when the house does sell.