When a landlord dies, their rental properties pass to the estate and the tenancy continues uninterrupted. The executor or administrator becomes the landlord for all purposes -- even before the grant of probate is obtained. The Renters' Rights Act 2025 (from 1 May 2026) applies equally to estates: Section 21 is abolished and only Schedule 2 grounds are available to end the tenancy.
Executor's first steps after a landlord dies
Notify the tenant of the change of landlord. Serve a new Section 48 notice (an address in England or Wales for serving notices on the estate). Locate the tenancy deposit and verify protection scheme registration. Check when the next gas safety certificate and EICR are due. Open an estate bank account for rent collection.
Executor obligations during probate
- Section 48 notice: must be served on the tenant -- until served, no rent is legally due from the tenant
- Gas safety certificate: annual check obligation continues uninterrupted
- Section 11 LTA 1985 repair obligations pass to the estate immediately
- HMO and selective licensing: executor must notify the local housing authority of the change of landlord
- No Section 21 notices from 1 May 2026 -- use Schedule 2 grounds only
Regaining possession -- Ground 1 and 1A
- Ground 1: beneficiary intends to use the property as their only or principal home -- 4 months' notice, 12-month re-let restriction
- Ground 1A: estate intends to sell with vacant possession -- 4 months' notice, tenancy must be at least 12 months old
- Selling with tenant in situ: property sold while tenancy continues; buyer takes over as landlord (typically 10-25% discount to vacant possession value)
- Court-ordered sale does not override the possession process -- Ground 1A must still be followed
Tax during estate administration
- Income tax: estate rental income taxed at 20% basic rate (no personal allowance available to estates)
- Self Assessment return required for the estate covering the administration period
- CGT uplift on death: property valued at probate value; gain accrued during deceased's ownership is wiped out
- CGT annual exempt amount available to the estate in the year of death and two following tax years
- CGT rate on residential property sale: 18% (basic) or 24% (higher) from 30 October 2024
- Finance Act 2023: no-gain/no-loss CGT treatment for transfers to beneficiaries within 3 years of tax year of death