Fixed Probate Fees, call:

0800 612 6105

Alternatively local rate:

020 8150 2010

Are Probate Sales helping the Property Market

With everyone forecasting a bleak
outlook for the rest of 2009 it is nice to
see that there are still areas of hope on
the horizon.
As probate properties are usually sold
for a price less than their market value it
has been reported that this type of
sale is having a positive effect on
the housing market.
This type of sale usually progresses
fairly quickly with owners being keen
to sell the property and tie up any
loose ends. Sellers of probate
houses are not keen on waiting for
prices to rise again as this would
involve the added problems of
renting out the property. Any rent
achieved from the property may also
be swallowed up by the interest due on
Inheritance Tax. With property, it is
possible to spread payments over 10
years but it is still necessary to pay
interest on the amount throughout the
‘loan’ period.
Due to all of these factors the relatively
faster speed on probate sales is helping
to drive the market forward at a time
when other sales are slowing.
Executors have been caught out by the recent drop in property prices because
they are unable to advertise the property
for sale until probate is obtained and this
is only granted after all inheritance tax
has been paid or an agreement to make
payments is in place.
The probate property market gives an
ideal opportunity to those looking to
invest in property by obtaining it at a
reduced price. The properties have often
been inhabited by the deceased for a
number of years and there are often
improvements that need to be made.

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