Do I need to apply for probate?

My father-in-law died in 2014. My mother-in-law has started in residential care. As part of this process we have Lasting Power of Attorney for my mother-in-law. We have applied for a Deferred Payment Arrangement with my mother-in-law's local authority to pay for her care. As part of this process we found some papers. It seems that some years before his death my father-in-law made a Deed of Gift to transfer 50% of their property to my mother-in-law for them to hold as Beneficial Tenants in Common. They then both made new wills so that their 50% share of the property to was to be left in trust. In my father-in-law's case, the trustees were to be his wife and his daughter. I have looked on the Land Registry and can see that the tenancy in common has been registered. There is a restriction on the title, 'No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered unless authorised by an order of the court'. So I have two questions.
1 - Is there any need to apply for probate, my father-in-law had little money and no assets other than the family home?
2 - We are considering the option of renovating the family home and renting it out to pay towards my mother-in-law's care. Does this alter any answer given to (1)?

As ever with this type of thing, it is all new and I'm in the initial 'getting my head around it all' phase. Any help gratefully received.

Mike.