inheritance advice..
Comments
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Just to add, if your father died suddenly of heart related problems perhaps consider asking your doctor if you need a check up in case there are any hereditary problems. Sorry to raise this.0
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If you google "landlords forums" you'll find several sites where you can find out about the benefits and pitfalls of being a landlord.
Maybe if you're not very good at hanging onto money, it would be best to keep the house. You can't spend bricks and mortar the same way as money from an account can slip away.
After such a shock, it's probably best not to rush into any major decisions. Give things a chance to settle and think around all the possibilities before deciding.
Loanranger's comments about insurance are really important. Do follow those up.0 -
first off you do not inherit debt ??
i wouldnt sell the house I would hold on to it, we are at the bottom of the housing market and you will always need somewhere to live
BUT with no rent or mortgage to pay this increases your disposable income, eg rent £500 per month this is now yours to do with as you please
with the additional income i would ivnest this, but i would not sell the house especially if you have just lost your parents
if you do decide to sell the house which i wouldnt you will need to find an IFA who will be able to ensure you get a decent spred on asset classes unless of course you are comfortable investing in the markets yourself0 -
first off you do not inherit debt ??
i wouldnt sell the house I would hold on to it, we are at the bottom of the housing market and you will always need somewhere to live
BUT with no rent or mortgage to pay this increases your disposable income, eg rent £500 per month this is now yours to do with as you please
with the additional income i would ivnest this, but i would not sell the house especially if you have just lost your parents
if you do decide to sell the house which i wouldnt you will need to find an IFA who will be able to ensure you get a decent spred on asset classes unless of course you are comfortable investing in the markets yourself
it is true that debt is not inherited
however, if the deceased had assets (as in this case) then the debts must be paid from the estate0 -
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Why not get out of Wales now and move into the house look for jobs there and get lodgers.0
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BUT with no rent or mortgage to pay this increases your disposable income, eg rent £500 per month this is now yours to do with as you please
If the OP has been on benefits, he'll have had his rent paid for him as well as losing his means tested JSA. He'll need to use his inheritance as income in some way.0 -
ok well the debt will sort itself out, you need to see an advisor or relay more info
the guy needs somewhere to live, he has a house, can he not get a job ?
the housing market is at the bottom and will probably remain at the bottom for several years, although i would expect interset rate movements towards Q3-3 2011 which again will put pressure on teh housing market, but houses are slow moving assets but secure assets on a balance sheet the first thing you look for is property
your changing that to go into a fast moving asset eg the stock market also once your off the housing ladder its alot harder to get back onto it stamp duty alone is 0.5%
at your age i dont think this is wise
my advice would be
1.hold onto the house, you have somewhere secure to live for the rest of yourlife and poentially your families life if you have one
2.build up your savings through employment eg 3-4k for emergency
3.once you have done the above begin investing in the stockmarket0 -
Renting the house out is pretty simple. A good letting agent will sort everything out for you, but they will take a large % of the rental income. Somewhere near 10-12% of the monthly rental income depending on the amount of work they put in.
To basically rent the house out, you would need to take out some Landlord insurance (building insurance), and then have a Gas Safety Check (£45).
What condition the house is in, is dependant on how much work you would like to put into.
Though, im sure the rental price would be somewhere near £1,000 pcm.
For Example,
Rental Income - 12months x £1000 = £12,000
Outgoings - Per Year
Gas Safety Check - £45 (Per Year)
Landlord Insurance - £200
Letting Agents Fee - Up to £100 pcm (depending if they fully manage the house for you)
Any repairs you wish to carry out - £???.??
So as you can see, you would clear about £8500 ishy per year in profit from a house that was let out with a full time tenant.
We undercut all the houses in our street for rental amounts, the house went in the shop window on the friday, saturday afternoon i had a viewing and a tenant signed that day. Here we are 12 months on. I would not worry about loss of rent etc at the minute, as there are insurance policys for that and so on.
You can always call in a local letting agent to come view the house, and to give you an idea on what its worth. They wont charge you anything, and your not bound to anything. If they ask you for anything, then they are not for you. Also they will answer all your questions about managing repairs, collecting the rent etc. Ours basically repairs anything, then takes the cash out of the rental income that we receive.
Feel free to drop over to the house renting section on here, or visit www.landlord-zone.co.uk
Regards,
Alias0 -
Very sorry to hear about your Dad.
It's actually not difficult to handle an estate yourself - you do not have to go to a solicitor. If there is a will and if all the property goes to you and nobody disputes that fact it's all pretty straightforward. So as you have already got a solicitor on board he should find it an easy one to do.
If the estate is worth over £325K (assets minus debts and minus funeral expenses) there will be some tax to pay: when you have a list of all the assets with their values it will be obvious to you whether you are over this threshold. (Even if the estate is over £325K there could still be no tax to pay if your father's wife died before him and left assets totalling less than £325K to persons other than your father.)
You do not have to supply evidence to HMRC of a property valuation. However, if the estate is just under the threshold you might want to get three estate agents to value it and get the lowest to put it in writing (they might do that, free, without even being asked to, but they might charge you - £75?) so you know you're on firm territory before sending the forms to HMRC. If the estate agents understand why you are having the house valued they will put a lower valuation on it: if you're just an ordinary seller they tend to estimate high to get your business. (But they might not come and do a free verbal valuation at all unless they think you might want to sell it...)
Insurance policies that pay out on death to, say, you do not form part of the Estate and so do not count towards the £325K threshold. However, if premiums have been paid towards such policies in the last few years those premiums can count as assets of the Estate.
With things like cars, ask a dealer what he'd buy them for - that's their value.
To sell a car you have to be able to transfer the log book. The DVLA will not let you do that unless you have Probate and thus, as Executor, have become the legal owner of the vehicle.
People owed money are usually understanding and will wait until Probate has been obtained.0
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