Inheritance while a council tenant

Mojisola

Won't your UC be affected by the lump sum you inherit?

davidmcn

Mojisola said:

Won't your UC be affected by the lump sum you inherit?

Yes, they acknowledge that in the OP.

ElephantBoy57

I know someone that got social housing in Leeds, whilst living in their own over-crowded house.

mmfmm

I live in London if that makes any difference, so houses are obviously Ridiculously overpriced and therefore completely outprice me. I can’t move in with my mum as she lives in a 1 bed, and she doesn’t want to move, she’s lived in her house In the same area for a long long time. I definitely want to attempt to buy and rent out, because either way it is some sort of income, down the line I can always chose to sell, more likely once my children grow up and move out.

ive spoken To citizens advice today and they can even give me a straight answer and I’m awaiting an email from them recommending other agencies to talk to, but it seems to be such a grey area legally, so I’m stressed as I don’t want to do anything I’m not allowed to do and get into trouble 

mmfmm

*citizens advice can’t give me a straight answer

noitsnotme

mmfmm said:

 I’m stressed as I don’t want to do anything I’m not allowed to do and get into trouble 

You think you're stressed now?  Wait until you become a landlord - then you'll know stress!

AdrianC

mmfmm said:

I definitely want to attempt to buy and rent out, because either way it is some sort of income 

Woah up...

Borrowing to invest is always a mug's game.
Borrowing to make a poor investment is even more so.

Property is NOT the only investment that provides an income...

Care to show the numbers you're working on...?

xylophone

Borrowing to invest is always a mug's game.
Borrowing to make a poor investment is even more so.

Would the OP be borrowing? The idea seems to be to buy outright (cash from inheritance) "far away" from London where she lives in a Council property.

How she would intend to manage the property remotely while working and bringing up her children as a single parent does not seem to have been well thought out.

She does not appear to have considered the responsibilities of a landlord, how she would cope if tenants proved troublesome, how she would cope with voids, how she would pay for  any necessary repairs etc.

ChloeManoey

davidmcn said:

Mojisola said:

Won't your UC be affected by the lump sum you inherit?

Yes, they acknowledge that in the OP.

No the OP only mentions telling them if she becomes a homeowner. Having the lump sum as savings would also need to be disclosed as that would likely mean you are no longer entitled to UC. 

scottishblondie

I definitely want to attempt to buy and rent out, because either way it is some sort of income

I really wouldn't count on that.  I know a lot of people are attracted to BTL because it's an "investment" that is easy to understand, but income/profit are not guaranteed.  Buying and selling property comes with a lot of attached costs.  Renting out a property also comes with a lot of costs, and if you're not anywhere near it then you're going to be paying a managing agent to handle the tenants/property and paying out for repairs and maintenance by tradesmen (even for things that you could easily handle yourself if you lived nearby). 

You also need to consider what happens if you get a bad tenant - there is the potential for massive damage to the property, long periods without rent, an expensive eviction process etc.  A rental property isn't something to undertake lightly, you need to be able to handle the worst outcomes and not just hope that all will go smoothly.  You may not want or be able to buy a property to live in yourself, but please do remember that BTL is not the only way you can invest your windfall.