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

lincroft1710

lizeratsi wrote: »

not an up coming area and wont be.

Up until the 1980s Notting Hill was a by-word for poor housing, race problems and rogue landlords. Today £300,000 buys you a 1 bed ex council flat in tower block.

You can never tell with places! But in answer to your question - sell it!

lizeratsi

he really wanted me to keep both so I am not going to sell the whole thing just months after he has passed away and I can always sell the shop later on if needs be, but at the moment a tennant is signing a 5 year lease, and will have a good business going in.

lizeratsi

Notthing Hill always had a chance to be pu and coming as all areas in London with decent mixed housing type, This place is really never ever going to be like thatl

lincroft1710

lizeratsi wrote: »

he really wanted me to keep both so I am not going to sell the whole thing just months after he has passed away and I can always sell the shop later on if needs be

This is not intended to be insulting or heartless, but you have to do what's best for you.

Splitting a property for sale will cause problems. Flats over shops are best suited to the rental market, so your target buyer is likely to be a BTLer who won't be paying good money or possibly a FTB who may not need a mortgage as some lenders seem loathe to lend on flats above commercial premises.

Is it possible the shop tenants might want the flat as storage?

lizeratsi

I am happy to sell the whole thing but what do I do with the money you see. Where can I invest it - to get a 9% return.....

DumbMuscle

lizeratsi wrote: »

I am happy to sell the whole thing but what do I do with the money you see. Where can I invest it - to get a 9% return.....

Did your father get a 9% return for the whole time he owned it? Or only when the shop was being let out and there were no problems? Was he local, or 300 miles away while managing it?

Are you factoring in maintenance, insurance, and legal costs into your 9% return? What about needing to modernise it? What about your time and effort to manage the rental, how much is that worth?

You don't have 9% profit. You have 9% income. Those are very different things.

lizeratsi

Dumb no your right he didnt get continous return and it was a problem for him although he had a great income when he had it.

harz99

Why are you concerned about a 9% return, when your op clearly states you need money for work on your residential property, surely that is where some or all of the "£40k" you might get will go.

Sorry to be blunt, but you've been advised time and again to sell and divest yourself of the worries these properties will surely give you being so far away.

Take the advice and get rid asap.

lizeratsi

Because I have no income, and dh is on a low wage thus in an ideal world, having the combined rent would be great income for us. Even £50 a week would be brilliant for us. MOney is tight, Thanks I really appreciate anyone who takes time to respond with ideas and advice its all tremendously helpful. Every poster usually has another little idea or something to think about.

Whilst it would be great to do an extension it would also be great to have additional income but that would come at cost too. If I knew what I was doing, if I had experience in these areas, if I was financially savvy I wuldnt be asking on here I would be doing something else. Someone might come along with a brilliant idea or soloution that has not been thought of,. At the end of the day my personal position is vulnerable I have no job at present with small children and no career to return too either. I have to be very careful with what I do now, hence, asking, caution etc.

Sorry if that sounds blunt too

harz99

Having just seen your other thread it seems not only are you on a low income as a family, but your paying a mortgage as well?

Even more reason to sell. Clear your mortgage from the proceeds which will ease your current "tight" budget, give your family a secure home and give you more disposable income from your OHs pay. Then, and only then consider what you will do with the balance of your sale proceeds.