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Pros and cons of buying a probate property

Journalist: Esther Shaw, Freelance

ended 13. June 2023

How to buy a probate house and cut £xx off the price

We want to look at the practicalities of buying a probate property – as well as the pros and cons.

Just how much can you save by buying this way?

But what do you need to watch out for?

Plus, what’s the best way to spot a probate property?

2 responses from the Newspage community

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Kundan Bhaduri
Property Developer and Portfolio Landlord at The Kushman Group
We have purchased three probate properties in the past month, and continue to buy more. One of the advantages of purchasing a probate property is the potential for significant cost savings. Executors or administrators handling the estate are often motivated to sell quickly, which can lead to more favourable pricing. Consequently, you can snap up potentially undervalued homes in probate. However, these properties do come with their challenges. Delays in granting probate can prolong the sale and potentially disrupt your plans. The property may also require significant repair and renovation due to neglect or the age of the previous owner, so be prepared. Probate properties are also sold with Limited Title Guarantee so you need to be comfortable with this. To mitigate these risks, prospective buyers should conduct thorough research, enlist the help of professionals familiar with probate sales, and carefully assess the property's condition and potential costs.
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Clive Read
Owner at Goldmanread
Pros
1) Likely to be cheaper than comparable properties in the area.
2) Family usually want to get rid, pay IHT and move on with their lives, especially if extended family involved.
3) Less competition as it's often a drawn out process.

Cons:
1) Usually in poor state of repair and needs updating, modernisation.
2) Can drag on for months depending on whether there is a dispute in the family, competency of solicitors dealing with the estate etc.
3) Stress! e.g last minute changes in the price especially if family are in dispute. If in a chain those below may be unwilling to wait out the process.

In terms of saving on the price it very much depends on the specific area and competition from other buyers but should be looking for 10% below asking price of other similar properties.

Look on rightmove for tired properties with out of date kitchen and bathroom, old fashioned wallpaper etc. Auctions. Serach your local area for abandoned looking properties and then search Land Registry.