inherited property advice... who to seek advice from?

Kynthia

Your aunt needs to decide whether she wants the responsibility of being a landlord, as letting agents take a lot of the profit but don't necessarily takeaway all the responsibility. She'll need to cope with paying for advertising for new tenants, paying for maintenance and repairs, and coping with any void periods. If a tenant moves in and doesn't pay the rent the letting agent won't necessarily arrange the eviction process through the courts. Have you looked at what rent the property can expect, and assuming some costs and void time what the return would be, and whether putting the sale proceeds into a savings/investment product would be as profitable?

Alfrescodave

To complete the picture, what type of property and value is involved here? Is it a one bedroom flat in Glasgow or a 30 acre estate in Hampshire?


The former is unlikely to have any major tax implications for your aunt

newdave1975

Well from what we have found out so far, the agent will find and vet the tennant and monitor on an on going basis. They are charging around 11% and according to them will deal with the Tennant, it's up to my aunt how involved she wants to be. The pit falls like you suggest are void periods, although it has been suggested it is a very sought after area. Costs for repairs come from a "petty cash fund" that needs to be kept topped up. There are insurance products that can deal with non payment or recouping rent costs.
This is just from the information we have gained over the last few months, how much is sakes patter on the agents behalf remains to be seen.
She is thinking that rent the house out, get some income and when (if) house prices pick up, then look to sell. All this though could be scuppered depending on her tax situation, which is the bit where she needs advice.
Dave

Mojisola

newdave1975 wrote: »

I must admit the tone of some posters is sonewhat preachy, bordering on sarcasm, yes I'm aware that many on here are seasoned "money saving experts" and that shows, how dare i leave matters this long.

But as I've stated many times over none of you were in my (our, my aunt too) and it is all too easy to judge from where your sitting. Passing of very close relatives obviously affects in different ways.

You have indeed been through a very difficult time but being an executor means that you have legal responsibilities which have been neglected. With a more awkward beneficiary, you could have found yourself being held personally liable for any reduction in the value of the estate.

As soon as you realised that you wouldn't be able to cope with the work, you should have employed a professional to do the work for you.

This doesn't change the position that you are in now but might help someone else who reads this thread.

getmore4less

newdave1975 wrote: »

Firstly my aunt is unsure if she wants to sell the house or indeed rent it out. Her thinking if she sells she will have a lump sum and be hit for it in tax.

The only tax on selling can be CGT if the place has gone up in value.


from post 1.
we have been given a multitude of opinions from an accountant? financial advisor? tax accountant?

WHat have these been saying?
put those to the board to analyse.


Not sure adding another advisor is going to help.

The fundimental question is does she want to become a landlord?

Has anyone explained what that means and the work involved.

Start there.

newdave1975

Mojisola wrote: »

You have indeed been through a very difficult time but being an executor means that you have legal responsibilities which have been neglected. With a more awkward beneficiary, you could have found yourself being held personally liable for any reduction in the value of the estate.

As soon as you realised that you wouldn't be able to cope with the work, you should have employed a professional to do the work for you.

This doesn't change the position that you are in now but might help someone else who reads this thread.

Yes I agree, it is of littie help for my situation but may be of help to others. Thanks for your post.
Dave

getmore4less

If you want a rough idea of the finances throw up some numbers

House value(probate and now)
gross potential rent
current income
Other assets
other debts.

newdave1975

Sorry i should clarify when I said got a multitude of opinions, it's the way I wrote it. what I'm meaning is onions on who it is best to seek the advice from, people have suggested IFA, accountants or tax specific accountants, we've not had advice. Sorry for confusion there.
Dave

newdave1975

2007 house value around 130k ...current 115k. Rent predicted around £500 pcm.
Dave

getmore4less

newdave1975 wrote: »

Sorry i should clarify when I said got a multitude of opinions, it's the way I wrote it. what I'm meaning is onions on who it is best to seek the advice from, people have suggested IFA, accountants or tax specific accountants, we've not had advice. Sorry for confusion there.
Dave

fair enough I though that might be what you ment but best to clarify.

Allthough people are having a go, it seems to me the benificiary has just sat there doing nothing, other than pay the bills, so is just as responsible, they could have done the legwork renting or selling and all you would have had to do is sign a few forms.