High debt. Sell garden, get mortgage? Find advice? Help needed!!!!

bigadaj

So interestingly this property is to an extent your get out of jail card, it's good that you acknowledge this and the fact you above been overspending.

As it's property then an ifa isn't going to help, you could speak to some chartered surveyors that deal with development who might be able to give you some options, but ideally you'd pay for this as a consultancy service as if it were free to you they'd be making money from the buyers, so couldn't trust the objectivity of the advice.

Teh main problem is that it's mainly an emotional decision, you could get an opinion on relative values of house, selling garden and how that might vary in the future but that's an investment opinion.

claire21

I guessed you had inherited

I presume you inherited as your mum has passed away ? And inheritance tax has been paid?

Have you made a plan for your estate for inheritance tax purposes? If you manage to keep the large London home after your death with IHT paid from somewhere will the kids then want to sell it as there's two of them?

If two have already sold there will be no big developer buying the whole land then as it's already been split up and sold in parcels?

Can you find out what your neighbours sold their land for?

If you took the mortgage cleared debt and did refurb, could you live on the amount of income you already receive (not having a monthly outgoing to pay debts anymore) and the excess you will be earning in rental go straight to paying back the mortgage so you only have a mortgage for a few years?

You have two children are you gifting them in your lifetime or at death, you said the land is for the children , what good is it to them as an asset surely they will want to sell it to have some capital. How well off are the children, can they get on the property ladder by themselves? How much do want to help the children at a young age or are you happy that they don't see anything until they are 50 for example?

claire21

I have sent you a private message also

paddyrg

I'd take a slightly different tack - I'd hold onto the land and take a loan on the family home. If you've approaching £2M in assets, you'll get the money no problem.

I'd hold the land as your pension, if it's well-located in London with planning permission a bit of a shoe-in thanks to neighbours, it's only going to appreciate all the more.

So - my plan... Take loan on family home to settle debts and do upgrade work to premium property. If you need extra, look at selling the business/shares. Upgrade the premium property to premium standard to attract a long-term premium renter, allowing for £x,000/year to maintain the standards or start improving the smaller property. Once you're renting the premium property at premium prices then you can look at overpaying the loan on the family home to reduce it ASAP.

If you're making enough cash after that, look at developing the garden yourself or in conjunction with a developer - retains more of the profit that way, and you can either sell for a lump-sum or better still have another lease property for the family empire ;-)