When handling the estate of a deceased person, one of the most significant responsibilities is deciding what to do with the probate property.
Failing to sell the property promptly and legally compliantly can result in serious financial, legal, and emotional consequences.
At London Estate Agency, we understand the sensitivity and complexity involved, and we’re here to provide expert guidance every step of the way.
What Is a Probate Property?
A probate property is a real estate owned by someone who has passed away and is now part of their estate.
It can’t be sold or transferred without going through the probate process, which confirms the validity of the deceased’s will (if there is one) and authorises an executor to manage and distribute the estate.
If the property is not sold, the executor—or administrator if there is no will—remains responsible.
This includes ongoing maintenance, insurance, mortgage payments, and taxes.
Legal Consequences of Not Selling a Probate Property
Breach of Fiduciary Duty
Executors have a legal obligation to act in the estate’s and its beneficiaries’ best interests.
Failing to sell a property—especially when it is in the estate’s best interest—can be considered a breach of fiduciary duty.
Beneficiaries can take legal action if they believe the executor is mismanaging the estate.
Inheritance Disputes
The longer a property remains unsold, the more likely it is to spark disputes among beneficiaries.
One party may want to keep the property, while others prefer to sell and split the proceeds.
If no action is taken, disagreements can escalate into costly litigation, potentially delaying the estate’s resolution for years.
Delays in Estate Administration
The probate process is meant to wind up the deceased’s affairs promptly.
Holding onto the property without a valid reason can extend the probate timeline indefinitely, delaying inheritance payouts and increasing stress for surviving family members.
Financial Risks of Not Selling a Probate Property
Accumulating Property Expenses
Properties come with ongoing costs: council tax, utility bills, insurance, repairs, and mortgage payments, if applicable.
Without rental income or a buyer, the estate must cover these expenses, rapidly depleting its value.
Property Depreciation
Unoccupied properties are vulnerable to damage, vandalism, and neglect, which can significantly reduce market value over time.
Delaying the sale may mean accepting a lower price later, directly reducing the amount available to beneficiaries.
Missed Market Opportunities
The property market fluctuates. Waiting too long to sell could mean missing a favourable market condition, especially in a city like London, where timing can affect the sale price substantially.
Tax Implications
Capital Gains Tax (CGT)
If the property’s value increases during the period held in probate, there may be a Capital Gains Tax to pay on the gain when sold.
Executors should know that delaying a sale could increase CGT liabilities, especially if the property appreciates significantly.
Inheritance Tax Delays
HMRC expects inheritance tax payments within six months of the death.
If the estate relies on property sale proceeds to pay these, delays could result in penalties and interest on unpaid tax.
Practical Risks of Keeping a Probate Property
Insurance Complications
Most insurers require a death notification and may cancel cover if the property remains unoccupied for an extended period.
Specialist unoccupied property insurance is expensive and often provides limited cover, placing the asset at higher risk.
Squatters and Vandalism
Empty homes can attract squatters, especially in urban areas. This leads to legal complications, costly eviction procedures, and property damage.
Preventative action, such as selling the property quickly, avoids such problems.
Maintenance and Safety
The executor must ensure the property is safe and well-maintained. This includes gas safety checks, electrical compliance, and structural integrity.
Any accidents or issues could result in personal liability or fines.
Why Work with London Estate Agency?
At London Estate Agency, we specialise in helping executors and families navigate the probate property process from start to finish. Here’s how we assist:
Free probate valuation to understand the property’s true market worth
Marketing strategies tailored to attract serious buyers
Expert negotiation to secure the highest possible sale price
Tenant management, if the property is let during probate
In-house legal guidance on probate compliance and tax
Rent protection and eviction support if the property is occupied
We manage everything under one roof, reducing stress and maximising value for you and your family.
Frequently Asked Questions
What happens if I don’t do anything with a probate property?
If you don’t sell, rent, or manage the property, the estate may lose value due to ongoing costs and depreciation.
You may also face legal challenges from beneficiaries or tax penalties from HMRC.
Can I keep a probate property instead of selling it?
Yes, but this usually requires buying out other beneficiaries or agreeing with them on the decision.
You may also need to refinance the property if there’s an outstanding mortgage.
How long can you keep a probate property?
There’s no fixed deadline, but the longer it takes, the higher the risk of financial loss, disputes, and legal issues.
It’s generally recommended to sell within 12 months of the deceased’s death to avoid complications.
Do I need probate to sell a property?
If the deceased solely owned the property, probate must transfer ownership legally. In some joint ownership cases, probate may not be necessary.
What if the property has tenants?
You must handle the tenancy by UK law. Our agency offers complete tenant management and can assist with Section 21 or Section 8 notices if eviction is required.
Act Now to Avoid Risk
Leaving a probate property unmanaged or unsold doesn’t just create unnecessary stress—it can significantly reduce the estate’s value and delay inheritance.
At London Estate Agency, we act swiftly and sensitively to secure the best outcomes for you and your loved ones.
📞 Contact us today at londonestateagency.co.uk to book your free probate consultation.
Let us help you sell your probate property legally, profitably, and hassle-free.
