How do executors sell an inherited rental portfolio?
A probate property sale is the sale of property owned by someone who has died. Executors can market the property straight away but normally need the grant of probate before completion. Tenancies continue after the death, and CGT is worked out on the rise in value since the probate valuation.
Read more in our guide: Selling an entire portfolio
Key probate sale rules
| Point | Position |
|---|---|
| Grant of probate | Needed before the sale can complete |
| Inheritance Tax | Due by the end of the sixth month after death; interest after that |
| CGT base cost | Value at the date of death |
| Executors' CGT allowance | £3,000 in the tax year of death and the next two |
| IHT loss relief on land | Claim if sold for less than probate value within 4 years |
| Tenancies | Continue; executors step into the landlord's shoes |
Before you can sell
Executors named in the will (or administrators where there is no will) apply for a grant of probate. The property can be valued and marketed while the application is processed, but most buyers will not exchange until the grant is issued. Where Inheritance Tax is due, at least part of it usually has to be paid before the grant, and tax on property can be paid by instalments over 10 years.
Running the portfolio meanwhile
Tenancies do not end on the landlord's death. Executors collect rent, keep safety certificates current, protect deposits and deal with repairs. Rent received is income of the estate and is taxed. Selling tenanted to an investor avoids having to seek possession, which since May 2026 means using a Section 8 ground and can take months.
Tax on the sale
The probate value becomes the base cost for Capital Gains Tax, so only growth after the death is taxed. Executors pay at 24% on residential gains and must report within 60 days. If the price achieved within 4 years is lower than the probate value, executors can claim to reduce the Inheritance Tax using the sale price instead.
An accurate probate valuation matters both ways: too high increases IHT, too low increases CGT later.
Sell, distribute or keep
Executors can sell and distribute cash, or transfer properties to beneficiaries, who take them at probate value. Where several beneficiaries share an estate, a single sale of the whole portfolio is often the fairest and fastest way to divide it.
Official Sources and Further Reading
General information for landlords in England, checked against official sources in October 2026. It is not tax, legal or financial advice: speak to a qualified accountant or solicitor about your own circumstances.
Frequently Asked Questions
A probate property sale is the sale of property owned by someone who has died. Executors can market the property straight away but normally need the grant of probate before completion. Tenancies continue after the death, and CGT is worked out on the rise in value since the probate valuation.
Yes, you can agree a sale in principle, but completion needs the grant. Tell buyers the expected timescale.
Transferring property to beneficiaries under a will is not a purchase, so no Stamp Duty is normally due.
Tell the lender about the death early. Most will allow time for a sale, but interest continues to run.
Thinking About Selling Your Portfolio?
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