Help to Buy ISA and Inherited Property

David.973

A few years ago, just before they got rid of them, I opened a Help to Buy ISA on the back of Martin’s advice. I didn’t necessarily look for the best deal, just opened it with the bank I have my Current Account with (for ease, plus any HtB is better than none I guess).

anyway, my grandmother has recently passed and I have inherited the entire house. It hasn’t been through probate yet so we’re a bit off renting it out (that’s my plan, may already have a tenant lined up when it’s ready too!). Anyway, my question is: since I’m soon to be a homeowner, am I no longer applicable for the HtB ISA? If it makes any difference, I opened it in November 2019. I haven’t put anything into it really (I’m trying to pay my debts off before saving, as the debt’s interest and ramifications were worse than the ISA’s interest), too.

Thank you all I’m advance and have an awesome day!

grumiofoundation

Yes you will no longer be eligible for HTB ISA.

Because you will own another property you you will no longer be classed as a first time buyer (think of it as first time owner). 

Because you own another property if you buy a property to live in yourself you will have to pay the additional property +3% SDLT (or +4% LBTT/LLT or Sco/wales) as you will be buying an additional property. 

dimbo61

Sorry about your loss but are you ready to be a Landlord ?
Is the property a good BTL investment ?
Up to standard ? EPC less the E or better still C or better ( new rules coming into effect in 2025)
EICR ( electrics upto standard )
Gas Safe Certificate for all the Gas appliances, 
CO alarm, Smoke alarms, Heat alarm.
Fit for human habitation ?
Landlord insurance 
Would it be better to sell and put down a large deposit on a new home to live in

David.973

Sorry for the late reply, it’s been a hectic week (the funeral was Friday and I’ve been at my dad and stepmam’s until last night).

So, for the time being, while I get myself on my feet (I’ve made a few bad financial decisions so far in life, I want to get them out of the way first), I intend to keep renting for myself, probably just staying where I am. Moving into my Gran’s home is not an option as, although it’s a short car ride away, I don’t (and can’t learn to), drive, plus public transport there is the pits (£7 odd return to Durham, only three buses all day Sunday - the main reason that I moved from there 6 years ago). Anyway, I digress.

As for treating it, it seems a pretty decent investment. All available property in the village is for sale only and has priced a lot of people out of the area. Plus, I know someone who, as long as I’m not charging a ridiculous price, would rent it (my Gran’s neighbour’s daughter, who I am both friends with), is looking to move nearer her mother for childcare purposes and to be nearer a better school (we have a pretty dang good primary school).

As for the standard of the house, I know the Gas safety certificate is up to date (I found that the other day and have faith that the company used are good due to being recommended by a retired Gas safety guy who is also a good friend of the family).

The house does need rewiring, which is something I’m looking into. I know this because a) it hasn’t been done in my living memory and b) we had an issue with some iffy wiring when my Gran’s son (now estranged, for good reason), had what seem to be cowboys wire in her new kitchen - the plug behind her kettle was smoking one day last summer; thankfully a paternal uncle (this is maternal gran), put a fix in place to see my gran out; she could not deal with the upheaval.

There is a CO alarm that’s recently been serviced as well as smoke and heat alarms. As much as she was elderly, she had me, my great aunt (her sister), and another of my paternal uncles sorting things out for her.

It is fit for habitation, my great aunt and I have cleaned it but I used to do maintenance cleans for my gran very third week (I work one in three Saturdays so would visit on one of my spare weekends in every three). All that needs doing, really, is a new carpet/flooring in two areas (luckily my dad fits flooring for a living so I’m good there!), the panel on the bath replacing, a new shed door and (maybe) new taps in the bathroom (it’s not suitable for a shower but a set of taps with a shower head may be a good idea).

Landlord insurance is something I’m going to have to look hard at, May need to seek some advice on that (though if any of you have any recommendations on the good and bad of the industry, I’d me most grateful).

I may sell in a few years time when I have my finances sorted but, at least by renting, I’ll cover my rent and a bit each month hopefully (did a quick valuation for the area, it’s around £600pm, even if I get £500, that should be my rent paid and a bit, even after paying for insurance and such). Also, decent properties where I live, Sunderland, are quite a bit more than my Gran’s rural County Durham village. Also, with one or two family members who’d never be away from my door for money if I sell the place, renting is a safer bet (one of said members is my sister, whose son I love to bits and I’m a sucker at times).