What To Do If You Inherit A House

A house is not like cash. It comes with memories, maintenance, and decisions that affect the rest of your inheritance. Many beneficiaries find themselves torn between what feels right emotionally and what makes sense financially.

The good news: the rules are clear, and you don't have to decide immediately. Here's what to know.

Your three options at a glance

Here's what most people don't realise

Inheriting a house doesn't mean you instantly own it. The property is held by the estate until probate completes. During that time — often 6 to 12 months — someone has to insure it, maintain it, and pay the bills.

• No stamp duty on inheritance. SDLT does not apply when you receive a property through a will or intestacy.
• Your CGT base cost resets. For tax purposes, you "bought" the house at its probate value. If you sell quickly, there may be little or no capital gains tax.
• Council tax changes. Most councils offer a 6-month exemption on an empty property after death. After that, empty property rates may apply unless occupied.
• Mortgages don't disappear. If there's an outstanding mortgage, the lender must be informed. The estate may pay it off, or you may need to refinance.
• Insurance is essential. Standard home insurance often becomes invalid when a property is empty. You need unoccupied property insurance during probate.

The key options explained

1. Sell the house

The most common choice, especially if the house is far from where you live or if you need the cash to pay off debt, invest, or share with siblings.

• Get at least two estate agent valuations.
• Consider an auction if the property needs work or you want certainty.
• Keep it insured and maintained until exchange of contracts.
• Allow 3–9 months to sell depending on the market.

2. Rent it out

A growing number of beneficiaries choose to become accidental landlords. It can work well, but it's not passive income.

• You need a buy-to-let mortgage if there's an existing residential loan.
• Rental income is taxed. You can deduct agent fees, maintenance and some costs.
• Regulations are extensive: gas safety, EPC rules, deposit protection, right-to-rent checks.
• Consider whether you want to be a landlord, or whether a letting agent is worth 10–15% of rent.

3. Move in

If the house suits your needs, this can be the simplest option — no sale costs, no landlord duties, and you keep the asset.

• Ties up capital that could be invested or used elsewhere.
• If you already own a home, selling yours may free up more cash.
• If multiple beneficiaries inherit, one buying out the others requires a formal valuation and agreement.

What people typically do

1. Sell within 12 months. Around 60% of beneficiaries sell, especially if the property is not local or if there are multiple heirs.
2. Rent for a year while deciding. Some let the property on a short tenancy to buy thinking time and cover costs.
3. Move in and make it home. Common when the property is mortgage-free and suits the beneficiary's life stage.
4. Buy out siblings. One beneficiary keeps the house and pays the others their share, often via remortgage.

Top 5 risks to be aware of

1. Letting it sit empty. Uninsured damage, squatters, or burst pipes can wipe out tens of thousands. Empty properties need specialist insurance.
2. Ignoring the mortgage. Some lenders freeze payments during probate, but interest may still accrue. Clarify the position early.
3. Selling too fast after probate. Grief can push people to accept a low offer. A 30-day pause to get proper valuations usually pays for itself.
4. Becoming an accidental landlord without advice. Tax rules, tenant rights and property standards are stricter than many realise.
5. Family disputes over sentimental items. Agree who clears the house and what happens to furniture before the property goes on the market.

An example scenario

David, 44, inherits his parents' semi-detached house worth £320,000.He already owns a home 200 miles away.

• Month 2: Probate granted. Property valued at £318,000 for probate.
• Month 3: David lists the house with two agents. He takes unoccupied property insurance.
• Month 6: House sells for £325,000.
• Month 7: Conveyancing completes. David receives £325,000 (less estate agent and legal fees of roughly £6,000).
• Tax: His CGT base cost was £318,000. The £7,000 gain is within his annual exempt amount, so he pays no CGT.
• He puts the net £319,000 into FSCS-protected savings while deciding what to do next.

What people regret later

The biggest regret is rushing. Whether that means accepting the first low offer, keeping a house out of guilt, or becoming a landlord without understanding the workload — haste rarely helps.

The second regret is not budgeting for holding costs. Empty properties still need insurance, council tax, utilities and maintenance. Over 12 months, these can easily reach £3,000–£5,000.

For the bigger picture, see the complete guide on what to do with an inheritance.

What this means for you

There is no universally right answer. A house in a city you don't live in is usually better sold. A mortgage-free family home near your children's school might be better kept. The key is to separate the emotion from the economics — and give yourself permission to decide slowly.

Simple next steps

1. Confirm the property is insured for unoccupied use during probate.
2. Ask the executor for the probate valuation — this is your CGT base cost.
3. Check whether there is a mortgage and what the lender requires.
4. Get two or three estate agent valuations, even if you're not sure you'll sell.
5. Talk to siblings or co-beneficiaries early — agree a process before emotions run high.
6. If you plan to sell, budget 1–3% for estate agent fees plus legal costs.
7. For larger or complex estates, book a one-off call with an FCA-regulated adviser.

Published January 2025 · Last reviewed September 2026