The new digital probate system launched last year “is still causing significant delays” to the estate administration process, it has been warned.
The report, published by legal association Solicitors For The Elderly (SFE), comes after reports that thousands of properties have yet to be sold due to delays caused by the probate backlog.
According to the group, the coronavirus pandemic and stamp duty land tax (SDLT) holiday have caused a spike in buying and selling activity over the past 12 months.
However, the relief is set to end on 31 March 2021, meaning time is fast running out to complete any sales agreed on the assumption that no SDLT will be due.
But due to delays caused by the new probate system, experts suggest that the average time to sell a property in probate is now between three to four months longer than usual.
Consequently, the delays could lead to greater financial implications for executors whose buyers pull out of house sales that have become unaffordable without tax relief or need to move faster than the probate delays allow.
It was reported earlier this year that the probate backlog had reached 29,000 cases, with some bereaved families waiting up to 17 weeks to close an estate.
The delays have been attributed to a surge in applications lodged in response to a planned rise in probate fees – which ultimately never went ahead – and the closure of District Registries in favour of an underperforming online service, as well as the increase in the death rate associated with Covid-19.
Commenting on the report, Oli Budino, Regional Director of SFE, said: “The process of getting probate applications through has been incredibly difficult and time-consuming, and although it’s starting to improve, it’s evident there’s been a knock on effect on the sector and beyond.
“We’ve noticed conflicting advice from the probate registry on a few occasions: one SFE member was told that the office of probate was no longer expediting cases due to property sales, whilst another has been told that cases can still be expedited in exceptional cases for example where a contract of sale was entered into prior to death.”
He added: “In November last year, 56 per cent of our members said the main implication they encountered from a delayed grant of probate was a house sale falling through. This shows just how many property sales are being affected by the delays.”
For help and advice on related matters, please get in touch with our expert wills and probate team today.