Inheriting an expensive house

System

Yes, you're right this is going to need expert advice and careful consideration. I am absolutely going to seek this and will let you guys know what happens. If there is no way of course I will have to sell, which is sad because I have no desire to live anywhere else, but I'd like to try.

I'm honestly not worried about selling even if I make a complete pigs ear of it - the property is in Holland Park in Notting Hill and the estate agents said even if it was un-mortgageable they would have cash buyers who would pay the 1.4 in the morning, knowing what it would be worth if they built on it. Everyone on the street gets annoying notes in the door every few weeks asking about their houses (I think because our houses are right next door to the really REALLY expensive houses and are probably going to shoot up next)

getmore4less

Glassworks wrote: »

Oh right, of course. I thought maybe because he was transferring his share to us (we are altering the will) then we'd have to pay CGT on it. We're currently dealing with the will so I don't have all the details from the solicitor yet.

Thanks again, you guys are the first people I've contacted, so I will definitely take your advice and see what can be done.

You may have to be carefull of connected transactions, depends what changes you are doing and what taxes you are trying to save.

I never saw the point of saving old vfamily homes but then none of our previous generations did they all traded up in their lifetimes and most werein the wrong places for others to take ove.

A london property is completely different and worth keeping in its own right if you can makes something of it.

I fear that funding the £400k you need to juts give to the uncle may be the stumbling element of this if he can wait then it looks much more possible.

amnblog

Glassworks wrote: »

cash buyers who would pay the 1.4 in the morning, knowing what it would be worth if they built on it. Everyone on the street gets annoying notes in the door every few weeks asking about their houses.

We feel your pain...

Mojisola

getmore4less wrote: »

I never saw the point of saving old family homes but then none of our previous generations did they all traded up in their lifetimes and most werein the wrong places for others to take ove.

By the time it's divided into four flats, it won't be the old family home anyway.

I'd be tempted to take the money and find a flat that's already been modernised.

somethingcorporate

Mojisola wrote: »

By the time it's divided into four flats, it won't be the old family home anyway.

I'd be tempted to take the money and find a flat that's already been modernised.

This.

Either it's a family home you want to keep or it's a property development you want to do.

You appear to be confusing the two. Converting a house into 4 flats is not the same as keeping the house.

I'd sell and bank the money and take something on you are not risking hundreds of thousands on when you are wet behind the ears on big developments.

System

I appreciate the common sense. It's good to have a reality check, and if it does go this way then it's not the worst thing in the world and a sensible option.

I'm going to investigate this anyway and see if it can be done. The way I want to renovate it would keep to the original structure and has been done to many houses on the street (this is a conservation area), so it will still look and feel like the old house and I (or anyone else) would be able to convert it back at any time.

My share wouldn't afford me even a flat within 3-4 miles of here, and this area is my home. I'd rather pay back on this, if I can, than a smaller place. I do have the support of the family and I know my uncle isn't pressing for the money, so delaying/staggering his payment might be an option too.

Thanks so much for the comments guys, I'll seek advice and let you know what (if any) solution I come up with.

kazwookie

Ok so down the line

The family house has now gone and is 4 flats subject to planning permission, that you are going to let out.

Have you any knowledge of being a Landlord, and the rights of your future tentants?

I really think at your age you need to get proper legal advise regarding all aspects of this plan.

Where does your brother figure in all this?

What if the uncle changes his mind about allthis?

theoretica

Glassworks wrote: »

- I'm co-inheriting a house with my brother and uncle (that I currently live in) in London worth 1.4mil
...
- The house needs around 300k renovation work (inc. 20% contingency), and the valuers said it would be worth 2.5mil once this work is done

If it needs £300k of work to be worth £2500k then why isn't it worth nearer £2200k now? I would think developers would be keen for less than £800k profit, so something doesn't add up. Planning permission? Inflated 'after' valuation?

Glassworks wrote: »

My share wouldn't afford me even a flat within 3-4 miles of here...

If your share won't afford you a flat through normal purchase (are you including a mortgage?), then shenanigans with this property is unlikely to afford you a flat.

getmore4less

have you had breakdown of the renovations costs.

Have you reviewed the potential values of the flats.

You say not much structure easy to convert back, that's a lot of fixture and fittings, but do need to be top end to command the silly prices.

if the place really can be converted to 4 £600k+ flats/apartments worth a look.

rental income on each of £20k is very low the project may be a sell rather than rent.

What about three units 1 large to live in 2 smaller to sell off to fund the project.

you get a larger longer term property and the freehold.

amnblog

Glassworks, the main problem with your plan it that it sounds like development finance will be required.


Development finance companies like to entrust their funds with experienced developers for obvious reasons. They won't want to entrust money to a greenhorn like you when they can give it to a long term professional.


You could explore partnering with someone who has the experience you and your brother lack. In that case, trust, and legal agreements, are of the essence.