What Happens to a House When Someone Dies?

When someone dies and they owned a home, the property is usually the largest part of the estate and the part that raises the most questions. A house cannot be sold or handed over straight away, and what happens to it depends on how it was owned and whether probate is needed. Here are the questions that come up most often.

Can you sell a house before probate is granted?

In most cases, no. Where the property was owned in the sole name of the person who died, it cannot be sold or transferred until a Grant of Probate has been issued. The grant is what gives the executors the legal authority to deal with it.

You can still get things ready. The property can be valued, put on the market, and have an offer accepted before the grant arrives. The sale simply cannot complete until probate is granted. Estate agents and conveyancers deal with this regularly and will manage the timing around it.

What happens to the mortgage on a house during probate, and who pays it?

The mortgage does not disappear when the borrower dies, and the responsibility for paying it falls to the estate, managed by the executors. Until the property is sold or transferred, payments should be kept up to date from the estate’s funds, because interest keeps building and the lender can act if the loan falls into arrears.

If there is a life insurance or mortgage protection policy, it may repay some or all of the mortgage on death, so the executors should check early whether one exists. If there is no policy, the payments are made from estate funds in the meantime. If the property was jointly owned and jointly mortgaged, the executors need to agree with the surviving co-owner how the mortgage and the usual outgoings will be paid.

In every case, contact the lender early, as many will hold the account sympathetically while probate is underway.

Who pays the bills and insurance on an empty house after someone dies?

The estate pays them. Council tax, utilities and buildings insurance on an empty property all become the responsibility of the estate while it is being dealt with.

Insurance is the one to watch. Many home insurance policies reduce or withdraw cover once a property has been empty for a set period, often around 30 to 60 days, so the insurer should be told the home is now unoccupied and unoccupied property cover arranged if needed. Council tax may be reduced or exempt for a period after a death, though this varies by local authority and changes once probate is granted, so the local council can confirm what applies.

Should the house be sold or transferred to a beneficiary?

It depends on what the Will says and what the beneficiaries want, though a significant point is the CGT position and value of property at date of transfer/sale. Careful planning is required to make sure best option is taken

If the Will leaves the property to a named person, the executors can transfer it to them once probate is granted. If the Will simply divides the estate between people, selling the house is usually the practical way to do that.

Where the house is transferred, the legal title is formally changed at the Land Registry. Where it is sold, the proceeds go into the estate and are distributed according to the Will.

What happens to a jointly owned house when one owner dies?

It depends on how the joint ownership was set up, and there are two types. If the house was held as joint tenants, the surviving owner automatically inherits the whole property, and probate is usually not needed for it. If it was held as tenants in common, each owner holds a separate share, and the deceased’s share passes under their Will or the rules of intestacy, which usually does require probate.

This distinction matters more than almost anything else when a property is involved, so it is one of the first things to establish.

Do you have to pay capital gains tax when selling a house during probate?

Possibly, but only on an increase in value after the date of death. For inheritance tax, the property is valued as at the date of death. If the executors later sell it for more than that value, the gain can be subject to capital gains tax, which the estate pays. If it sells at or below the date-of-death value, there is generally no gain to tax.

For the 2025/26 and 2026/27 tax years, personal representatives, meaning the executors or administrators dealing with the estate, can have a £3,000 annual exempt amount during the qualifying administration period. Any taxable gain above the available allowance is charged at 24%. Costs such as estate agent and legal fees on the sale can be deducted from the gain. Where capital gains tax is due on a UK residential property, it must generally be reported and paid within 60 days of completion.

Selling promptly, before the property has risen much above its date-of-death value, often keeps any gain small or removes it altogether. Because figures and reliefs change and the position depends on the estate, it is worth getting specific advice.

Where to go next

Dealing with a house after a death brings together legal authority, a mortgage, insurance and tax all at once, and it is rarely as simple as it first looks. It is something a solicitor handles routinely and can guide you through step by step.

You can read our fuller overview in Understanding Probate: What Happens, What to Expect, and Where to Start, learn more about our Probate Services, or read about our Residential Property work.

Contact the team on 01273 604123 to discuss your situation. Alternatively, you can reach us by email at enquire@bbc-law.co.uk or make an enquiry.