Dilemma over inherited property

murphya

Hello

I’m looking advice, thoughts on my current situation.

My mum passed away 10 days ago, my dad died over 20 years ago and I am an only child.

I am the only benefactor of the estate and am also the executor of the will.

So of course it is a stressful and emotional time.

My mum had a lovely 3 bed bungalow in immaculate condition in nice area, around 15 minutes from where I live. I have a 4 bed terraced house in an okay area (which I really like) I live with my husband and 2 grown up children. My husband took early retirement/redundancy package around 18 months ago and we have no mortgage or loans, just bills to pay. I know that we are in a fortunate position.

So my dilemma is over the bungalow. I have had it valued for probate, around £240,000. My house is probably worth around £150,000.

I could sell both and buy a family home in our area for around £250,000 and invest the rest, but am mindful that kids could leave home within the next few years so could get stuck with a large house.

I would quite like to move in to it myself but it may be too small for all of us. It would an ideal property for my and hubby, especially as he is ten years older than me and has some minor mobility issues.

I could rent it out as a temporary measure only (not more than a year) which would give me breathing space as I don’t want make any hasty decisions. I would probably put the furniture in storage. I know that the yield would be small but it would just be a way of keeping the property occupied while I make a decision.

Any thoughts or similar experiences ?

Many thanks.

00ec25

there are literally hundreds of posts on here "discussing" what to do with "spare" properties that you did not set out to buy and now have to decide what to do with

the key is do you WANT to be a landlord? If you don't, you won't put the time and effort required into researching what that means, and treating your tenant in the business like manner they deserve.

add in possible sentimental attachment and you could quickly turn into the LL from hell as "mum's" house gets used by the tenant as their home in a way you dislike.

WillowCat

Agree with the above.

Either leave it empty for a while, while you make your decision, or perhaps move in with your husband soon, and leave your grown up children in the old house? You could charge them an affordable rent.

aliby21

I am sorry for your loss.

My thoughts are that ten days is VERY soon to be thinking about these sort of practical matters, let alone to be making major long term decisions. I'd just leave it empty for a couple of months while you all as a family consider options. Maybe one or both of your adult children could sleep over there some nights to keep an eye on the place?

If you do want to think about renting it out be mindful of the fact that it will no longer be 'mum's house' or 'your future home', but the tenant's home, with the emotional impacts that will entail. it might be 'immaculate' now but there is no guarantee it will still be so after you have rented it out. Also, it might be in pristine condition but is it in modern condition suitable for renting out? As others have said, becoming a landlord is a business decision, so you have lots of research to do on this before making a decision.

It is a horribly difficult time for you, so don't rush into anything.

Ms_Chocaholic

Make sure you insure the bungalow though. It would be best if someone moved in and then at least you wouldn't be having to insure it as an empty property.

How old are your children, you said grown up but that could be anything from 18-40.

murphya

Thanks for the quick replies everyone.

Kids are 21 and 22.

Ten days might seem quick but it feels like quite a responsibility to be dealing with, especially on my own.

The bungalow is quite modern, it’s a 1980s build, and mum had most of the Walls cream or neutral with laminate floors, a new bathroom with walk in shower installed 3 years ago. So probably not a typical elderly persons decor. The estate agent was practically hyper ventilating at the thought of selling it, as bungalows are in high demand in the area.

seven-day-weekend

Move into the bungalow with your husband and leave the kids in the other house, charging them a small rent to cover maintenance/insurance etc. They can pay their own bills. They could have a lodger to help out if they can't afford it.

But leave it all for a few months. It's too early to make any decisions yet.

xylophone

Are the children working?

Would it be practical for you to move into the bungalow, sell your existing property and use some of the equity to gift each of your offspring enough for a deposit on a property of his own?

G_M

Since it appears neither property has a mortgage, there is no financial urgency here. Yes, you'll have to pay council tax (though council's give 6 months relief I think on a death?) utilities and insurance etc, but those are relatively minor costs.


So take some time to decide.


I too think leting a property you have emotional atachment to is a bad idea, especially when you've used words like 'immaculate' in describing it. In 12 months time after letting, you will be heart-broken when you see inside again......


Sell it or move into it. But don't rush the decision.

aliby21

murphya wrote: »

Ten days might seem quick but it feels like quite a responsibility to be dealing with, especially on my own.

.

Yes, as executor it is your responsibility, to deal with your mum's estate.

But deciding what to do with her home, and whether to make it your home you need to involve your husband and children.

As executor the straightforward course of action would be to sell mum's bungalow and distribute the estate (to you!) - and use the proceeds to upsize, or invest, and look at downsizing later when your children are not longer living at home. But as a daughter, and as a family, there are many more aspects for you to consider. Leaving the house for a couple of months would allow you time to consider options.

murphya

Yes, I do have an emotional attachment to it, as it was our family home so maybe renting is a bad idea. It would also be hard to sell for the same reasons.

Just trying to think out load with some ideas.

I need to sell one of them at some point and invest some so that I can join hubby in retirement within the next 10 years.

And I will give the kids some of that sale towards a deposit for them when they are ready to buy. They’ve not been working long as only just finished uni so probably wouldn’t get a mortgage just yet.

I’ll see what the next few months bring.

Thanks.