Your finances

If you have a mortgage or equity release on your property, the proceeds of your sale will be required to settle the outstanding debt and you may have a penalty for early repayment. You may wish to investigate the options for transferring your mortgage to the property you are purchasing. Many mortgage products allow transfer for periods of 90 or 180 days. It may also be important to calculate your equity position post sale. If your sale is linked to a purchase, you will need to consider how you will finance your purchase either using money that you already have or by organising finance.

You will need to consider and plan for fees associated with selling. These are likely to include your estate agent fees, your legal fees and your removal costs. You may have a liability for capital gains tax to consider if you are selling a property that is not your primary residence or for a property that has a significant land holding. Your financial plan should include any costs associated with an onward purchase such as legal fees, costs of surveys, mortgage arrangement fees and stamp duty land tax (SDLT). To accurately calculate the stamp duty on acquisition please visit the stamp duty calculator on the Fisher German website. www.fishergerman.co.uk/stamp-duty-calculator

Probate sales

The sale of a property may be linked to the death of its owner and in this circumstance a Grant of probate will be required before the property can transact. A Grant of probate confirms the authority of an executor to administer the Estate of someone who has died, and this can commonly include selling a home.

The executor of an Estate should be prepared that an application for probate can take a few months to be granted depending on the complexity of the Estate and particularly if inheritance tax is to be paid. A property can be marketed but contracts cannot be exchanged whilst waiting for probate to be granted.

To calculate inheritance tax, your tax advisor will usually recommend that you obtain a professional valuation to help you calculate the value of the assets. Fisher German can assist with this process. You should consider the ongoing maintenance of the property and review the insurance schedule to ensure the insurance is valid if the property is to be empty for an extended period.

To avoid delays, the executor should check the Title of a property with the Land Registry. If it has been in ownership for many years, it may not be registered. This may mean that the original paper Title deeds will need to be located. The Title deeds should be checked in the same way as a non-probate sale.