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

PasturesNew

SteffieWoo wrote: »

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.

In that case it might not be hers to give away .... will have to refer back to the step-dad's will too.

I_have_spoken

Looks like the £ value of house will be eaten up in legal fees.

[Deleted User]

While solicitors do make mistakes, it sounds like the one handling the will for the OP's husband is certain the house is his to sell.


I'd probably clarify what the clauses in the will mean with this solicitor but suspect that there is some confusion on the OP's half, and some misinterpretation of posters because without the whole document, we can't be certain what is intended by the will.


I'd strongly advise going back to the solicitor and using a half hour session or even an hour to clarify the husbands legal standing re ownership of the property, going over any phrases the OP and her husband don't understand would be money well spent.


I would also strongly advise going to estate agents, asking them to view the property and asking what they should do, if anything, to maximise return on the property. They know what works in the particular area the property is in. To minimise the chances of the wrong advice being given, I'd call in at least two or three estate agents.


I wouldn't leave the whole thing in charge of the solicitor (for whose services you have to pay).


At the very least, I'd consider giving the property a good clean (can do wonders with a kitchen and bathroom), but that may be all that is needed. Consider replacing worktops and cupboard doors rather than the whole kitchen, things like that. Ask the estate agents if its worth replacing carpets with cheap plain carpets or laminate flooring etc etc. If you would need to replace the boiler or electrics, you are looking really at a more major refurb and its probably more likely to be better selling as a project (but realise you are also selling on any profit potential to the buyers).

Mojisola

deannatrois wrote: »

I wouldn't leave the whole thing in charge of the solicitor (for whose services you have to pay).

If the solicitor is the executor, they won't have any choice.

pinkteapot

Going back to the point re doing the house up...

OP - how much money do you realistically have to spend on this, and how much time can you commit to it?

Good quality kitchens and bathrooms could add some value (above what they cost).

Just repainting and recarpeting will make very little difference. You'll probably only get back what you spend.

If you do decide to do it up as a "project", get estate agents round early on to give you an idea of what the maximum it could get in a 'done up' state is (the area etc will always limit your ceiling price), and what they think it would sell for in its current state. Then look at how much doing it up will cost you.

A project like this could easily take over your lives for a year. Think carefully about whether you want to do this, or let someone else take it on.

Mojisola

pinkteapot wrote: »

A project like this could easily take over your lives for a year. Think carefully about whether you want to do this, or let someone else take it on.

Also, if you are getting any means tested benefits, the value of the house could mean these will stop, even though the money is tied up in a building rather than being available to spend.

moneyistooshorttomention

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?

The first thought that occurred to me and I am very surprised your solicitor didn't explain what "life interest" means.

Mind you...I'm surprised at your hubbie only being left a "life interest", rather than being left the house full stop.

If I were left a "life interest" house, then I would regard my options as being:

- live in the house and rent my own home out

OR

- continue to live in my home and rent this house out.

My concern would be just to ensure I could legally rent this house out and the "life interest" didn't just mean I could only get the benefit of that even if I myself were the one living in the house.

Personally, I would regard it as a bit of a poisoned chalice to be left a "life interest" house, as I would be forced to either live in it myself (even if I didn't want to) in order to get some benefit from the "gift" or have all the hassle of letting it out and attendant risk of not getting the profit I should have from it if I ended up with problem tenants.

This is just really a weird thing for MIL to have done. The only times I've heard of it before were when a husband left a "life interest" in a house to his wife (who was living in it anyway), so that she would still continue to be able to live in her home until her death, but wouldn't actually own her own home and couldn't sell it or leave it on to someone else.

Personally, I'd rent it out and do my darndest to get my anticipated profit from it. If I landed up with more troublesome tenants than it was worth...then I would just leave the house sitting empty and let it go to rack and ruin, as I wouldn't be prepared to do any maintenance to it in those circumstances. But I bet the Council would still want their Council Tax on it...

I think your best bet would be to try and get your local Council to take over renting it out and then they would be the ones responsible for keeping it in decent nick and you would hopefully get some profit from it.

TBagpuss

AS others have said, the first thing to do is to speak to the solicitor to make sure you understand the terms of the will. If your husband has only a life interest, then he doesn't have an absolute right to the house or the sale proceeds, but there are sometimes options (eg it may be possible for the trustees to sell the property to buy a different one)
If the house belonged to your MIL and FIL jointly they may have had mirror wills providing for the house to go to your husband, but with the survivor out of your MIL and FIL having a life interest.

If your husband is the executor of the will then (as executor) he will hold on trust for the beneficiary (himself).

If he is the executor then he doesn't have to let the solicitor do everything, but it does make sense to ensure that he understands clearly what his obligations as executor are - particularly with regard to ensuring that he pays any debts etc.