We've just inherited a house but have no idea where to start!...... Please help!!

SteffieWoo

Hi everyone!


As the thread title says, Me and my husband have just inherited a house but are in need of some support/help as we haven't got a clue where to start.


Unfortunately my mother-in-law passed away just before Christmas, and the solicitors have now been to go through her will, Basically my m-I-l left everything to my husband in her will as a 'life interest'


My husband has therefore inherited my m-I-l's house but he is not sure what to do, All that he knows is that he wants to sell the house as its not somewhere he actually wants to live due to past memories etc.


The solicitor has advised that he can get the house sold for us and has requested keys for the house so he can then instruct an agent to value and market the house.


We have a few questions but I feel it best to tackle them one at a time to keep our heads straight at a very difficult time.


my first question is..... Is this the best thing to do? Should we let the Solicitor deal with this or should we say that we want to sell the house ourselves? Or that we don't want to sell it as this stage and just get the house signed over to my husband? This way we can do any necessary improvements to get the best value for it, Obviously we want to get the most we can of the inheritance without having to pay extortionate and sometimes unnecessary fees.


We have never sold a house or inherited anything in our lives so we are total 100% novices, I have read through the forum but just want to be clear on everything and make sure we're doing the right thing.


Any advice anybody can give would be greatly appreciated.


Thank you in advance and Thank you for reading.


SteffieWoo x

I_have_spoken

I'm sure the solicitor will take their 'cut' for conveyancing, as will the EA, surveyor etc. Really depends if you are happy to pay someone to take all the issues off your hands, esp. as it's 'free' money.

just get the house signed over to my husband

You need to confirm if executor will already already have done this! As it's now your asset, you need to be arranging building insurance, making sure council tax is paid etc.

This way we can do any necessary improvements to get the best value for it

YOu need to think -

1) Will a 'cheap' refurb actually add value or should you just price realistically for quick sale as a 'project'?
2) Do you have the time/money to arrange getting the work done to a good standard?
3) Can you get it complete before Easter when the market traditionally picks up?

Unfortunately houses going as a 'probate sale' are very, very obvious on Rightmove, look at the thread on the forum. If you sell 'as is', expect to get bargained down as would-be buyers know your position.

SteffieWoo

Yes i'm sure they would too, I'm also sure I could deal with most if not all of this myself so long as I know I am doing the right thing.
Thank you :-)

dimbo61

Did your MIL leave any money as well as the house?
What condition is it in ?
Do you have the funds to put in a new bathroom/kitchen/central heating/etc if needed.
Sometimes selling as is can work out cheaper than spending thousands to do up to YOUR taste and limiting your market.
Do not underestimate the costs of refurbishing a property.
At the same time you need to consider your target market!
Small two up two down could be first time buyer with no money to spend on new kitchen/bathroom etc.
Old large bungalow with gardens maybe older couple with money to fit out how they want

laurel7172

I think you need to talk to your solicitor about the meaning of "life interest" in your own particular case and any restrictions this involves regarding what you can or can't do with the house proceeds. Bottom line as I understand it-it isn't really his and transferring it to his name may be premature. Who is/are the ultimate beneficiaries when your husband dies? What happens to you if your husband predeceases or leaves you?

ethank

I'm no expert - but can your partner sell?

If you inherit a life interest, that means he is the beneficiary of the trust whilst he is alive, so he has the benefit of living in it or the income from renting it out, but cannot sell it.

I'd get legal advice on this life interest trust, before spending a penny on the property.

I_have_spoken

talk to your solicitor about the meaning of "life interest" in your own particular case

Good point! Is the solicitor one of the trustees? Could have been done to minimise IHT or avoid having to sell for carehome fees. Then again, this is when you find out there was older half-sibling who was given up for adoption and their children are the beneficial owner!

melanzana

A life interest means your oh can live in the property, or can rent it out AFAIK, but cannot sell it for his/her own benefit, as it is his/hers for their lifetime only.

Where does the property go after the life interest of your op? That's normally a clause where life interests are concerned.

Get advice! From someone who can really interpret the will.

Internet fora do not usually have all the facts. But are willing to help all the same.

SteffieWoo

dimbo61 wrote: »

Did your MIL leave any money as well as the house?
What condition is it in ?
Do you have the funds to put in a new bathroom/kitchen/central heating/etc if needed.
Sometimes selling as is can work out cheaper than spending thousands to do up to YOUR taste and limiting your market.
Do not underestimate the costs of refurbishing a property.
At the same time you need to consider your target market!
Small two up two down could be first time buyer with no money to spend on new kitchen/bathroom etc.
Old large bungalow with gardens maybe older couple with money to fit out how they want

The house is in fairly good condition, its liveable in, it needs a bit of tidying up and making everything bright and a good clean. possibly a lick of paint to make everything neutral. I would also say it needs a kitchen and a bathroom but we're not sure whether to just leave them as they are so that the buyer can do as they please with it and make it 'their own'


It is a 2 bedroom detached bungalow with a fairly big driveway, garage, front and rear gardens and is pretty much in the centre of a town so is in a really good location.

laurel7172 wrote: »

I think you need to talk to your solicitor about the meaning of "life interest" in your own particular case and any restrictions this involves regarding what you can or can't do with the house proceeds. Bottom line as I understand it-it isn't really his and transferring it to his name may be premature. Who is/are the ultimate beneficiaries when your husband dies? What happens to you if your husband predeceases or leaves you?

As far as I am aware the term 'life interest' means that if my husband out-lived my m-I-l then her whole 'estate' goes to him.

ethank wrote: »

I'm no expert - but can your partner sell?

If you inherit a life interest, that means he is the beneficiary of the trust whilst he is alive, so he has the benefit of living in it or the income from renting it out, but cannot sell it.

I'd get legal advice on this life interest trust, before spending a penny on the property.

Is this something we should be asking our solicitor then? Because if we couldn't sell it ourselves then the best thing to do would be to let the solicitor deal with it?


And how can we be sure that the solicitor is acting in our best interests instead of in the interest of his company?


When my husbands step-dad passed away he left everything to my m-I-l with her as a life interest, as she was living in the house at the time the house was signed over to her.


If my husband was to get the house signed over to him would that mean he would have to live in it for a certain amount of time before being able to sell it? Or could he just do with it what he pleased?


Thanks for all the replies so far everyone, We really appreciate it.


SteffieWoo x

roger196

The term "life interest" strongly implies there is a trust. You need to look at the will to see who the trustees are (these are the people who run the trust) and who are the remaindermen ( the people who inherit the property when H's life interest come to an end.)
As H has a life interest, he is only entitled to the income from the trust ( eg the rents from the property if it is let out or the interest if the property is sold and that money is put into a building society account) and not its capital.
H needs to discuss with the trustees what he would like to happen to the property but the final decision is that of the trustees.
You need to find out if the trust allows the advancement of capital and in what circumstances. You need to find out who has the power to appoint new trustees.
Come back to the forum when you have found out more and ask questions.

Upsidedown_Bear

OP - you might find this interesting about "life interest".
http://www.makeawill.co.uk/page-right-to-live-file-33.html