WWYD Inherited run down flat but also need own house work doing

lizeratsi

WWYD I have a run down flat I have inherited worth in current state 35 - 40 grand.

It needs larger bathroom and kitchen all ripping out and re configuring.. it would need a few grand spent on it to rent it out or basic stuff doing to new kitchen and bathroom but still ££££. Its also a long way away.

Or sell it if I can! And use the money to do desperately needed kitchen extension on my own house which is in a better area. And when we sell this place will gain ££ too in the house.

Is it really worth hanging onto inherited flat or worth selling> Its also attached to another property

Mojisola

Sell it.................

PasturesNew

At that value, unless you've skills/contacts AND time/inclination etc etc it's just best to sell it. The "reward for your time/effort" is unlikely to be close to being worth it for you to take it on.

Red-Squirrel_2

Definitely sell it.

lizeratsi

Good point about high end finish.

The problem is the bath room really is so small, I could try and put a wet room in, the kitchen isnt ideal either as in - its really all forced into what was the old bathroom, now carved into kitchen and bathroom.

I am so torn I dont know what to do - its so far away, I would have pay agent to manage it - how on earth do I cope if big job like roof needs doing...or tenant doesnt pay for ages...

But I also feel in long term it may be silly to sell it. YY about no costs to me personally. However if we sold it - we could do our own house extension, and try and have ££ left over to pay down our mortgage.

lizeratsi

400 PM max not an up coming area and wont be.

Red-Squirrel_2

Get it sold, auction if need be.

If you'd inherited £40k, would you consider buying a shabby flat in a far away run down area with it?

Owain_Moneysaver

lizeratsi wrote: »

400 PM max not an up coming area and wont be.

If the area is depressed it won't attract 'quality' tenants and you may face higher than average dilapidations and void periods which, along with agents fees, will eat into the return on investment - even though you got the house for 'free'. You also probably won't get much capital growth long term.

Sounds like it would provide a good return for a local buy-to-letter who can do repairs and upgrades themselves or at mates' rates, and manage the rental so not pay agents fees.

If you assume spending £5k on upgrades making the value £45000, £400 rental income, then that would be a 10% gross return. But after fees and costs your net return might be 5%, with the hassle factor. (If the roof suddenly needs fixing you may actually make a loss one year.)

Compare that to the value you may add to your own house over and above the cost of building the extension, the money you will save if you can pay off some of your mortgage, and the happiness of having a much nicer house to live in every day.

lizeratsi

Red Squirrel that made me laugh, NO I wouldn't buy a flat 300 miles away

I agree quality of tenants worries me too. Its a shop and flat I am thinking about keeping shop as its pretty OK and has a tennant going in on 8 grand per year.

I feel a shop would be simpler to keep - but then again I could be silly however if I wanted to sell that too at a later date - would be OK with tennant.

Flat is causing me massive worries and stress and I will be forced to pay council tax very soon. The other option is to sell whole unit nad buy nicer done up house in same ish area but somewhere a bit nicer? but would be less rent yield over all - flat and shop could be 1,100 - shop is 8 grand per year, small terrace in same ish area but nicer could be 650 per month but then all fees of buying and selling etc

Red-Squirrel_2

lizeratsi wrote: »

Red Squirrel that made me laugh, NO I wouldn't buy a flat 300 miles away

It wasn't really supposed to be funny!

It was supposed to highlight that you would never have made a decision to buy this flat, even if you inherited the purchase price, so why on earth would you keep it rather than converting it into cash that you can actually use in a way you choose and that makes sense for your life?

Get it flogged.

christabell

I have sent you a PM