Please help, sell inheritance or hang onto it,. what other investment would yield 666 a month income

atush

You dont sound equipped to maintain this asset.

Sell up.

bowlhead99

What you say makes sense I guess, but you said you *had* a buyer, not quite sure if it was your a friend or another person that your friend lined up (" a friend lined her")..and now they have less money and you still need to pay for creating the leasehold, separate water works etc. You mentioned in your first post the flat needs ten grand of other work, but you say you're not going to touch it to sell. So we assume the buyer's going to buy it cheap from you at £40k and do that work themselves, even though "her money is now lower than it was a year ago"? Presumably her money being lower than a year ago doesn't change the open market value of your flat.

If your own money is tight, you can't really afford to do your friends favours by splitting a flat off from the test of the property and selling it to them on the cheap. It may still be better to just sell the whole thing to a developer or professional landlord.

I'm struggling to follow some of the wording, eg "I dont think my tennant was in then I have come through all that". Your tenant was in what? In the property paying you rent? Making an offer to buy the property?.

If you create a new lease for the flat as a separate address, but are the landlord of that lease (ie owning the freehold to it) then you still have the maintenance obligation for when it needs a new roof and you have to front the money before trying to recover a fair share off the leaseholder who's "under your roof and above your foundations" along with your shop. It's not as much hassle as being a residential landlord but still involves responsibility.

I can see why having rent from a shop rolling in each month is attractive. But if you've had 100% occupancy and no issues, that's probably beginner's luck. You should be putting a chunk of it aside for issues and the times it's vacant etc. What happens when the flat's new owner occupier has a bust up with the commercial tenant below them? Huge water leak damages both of the properties and you're stuck in the middle of both of them. The tenants of the shop stop paying for a while, trash it and do a runner like previous ones did to your dad, etc.

When you own commercial premises and it's too far away for you to monitor and control, it will worry you because there are lots of things that can and do go wrong, even if it has been painless so far. It's only painless because the less than average amount of pain is being offset by a better than average run of luck.

lizeratsi

My dad made a few mistakes and tried to chase people for money when it was obvious they had none. i am very much of the mind that if someone stops paying thats it - move onto the next one.

The shop wasn't ever trashed.

When I posted before I am not sure I had a tenant in the shop below.

The price of the flat stays the same.

"and you have to front the money before trying to recover a fair share off the leaseholder who's "under your roof and above your foundations" along with your shop"

I would put money aside from the flat sale for this sort of thing however it concerns me that the person in the flat be it my friend or whosoever may not have enough to pay for things like that. I would have to assume not.

But a roof is a once in a life time thing. One good thing about it being inherited is that i know the issues that have cropped up with the shop and how intensive its been to manage it. It hasn't been painless - however it was still providing income for relative until very late in life...until he was too disabled and infirm to manage it.

The other thing that puts me off keeping it is having to deal with other humans for my living...

The thought of the money in other types of investment is very attractive.

Katiehound

All I can say is that I have friends who bought a house just round the corner as an investment- they were forever being called out by the tenants, then clearing up the mess between tenants, redecorating etc- and this house was only 5 minutes walk away!
It was pure hassle....... after a few years they sold it.... and peace returned.

Another friend bought a flat as investment and had problems with tenants, then unoccupied for months so no income. Don't know what the situation is now.....

Personally I would sell the whole thing, shop & flat, get the money in your hand and then decide how to proceed