Sell or rent out inherited house?

Keep_pedalling

Yazmina said:

I think I should hold on to the house because people bang on about property so much, like it's the Holy Grail.  

My mum wasn't married so I think the threshold is £325k + £175k.  IHT would be due whether I sell or rent it out.

Maybe they do but I bet few of them are actually landlords. Go with your gut instinct and sell it. 

You are correct about her IHT exemptions, anything over £500k will be subject to IHT. 

pattycake

Our family home was inherited jointly by myself and my brother.  He wanted to retain it and let it out, I preferred to sell.  He bought me out and rents to his son.  All perfectly amicable between my sibling and I.  

I’ve never regretted my decision.  Although the house is only a short distance away and I pass frequently, I’ve not been inside for several years.  I’m happy about that.  My memories are intact.

lincroft1710

Sell it and use the money to either improve your current lifestyle or invest in a property to rent out, with which you have no emotional connection.

Flugelhorn

lincroft1710 said:

Sell it and use the money to either improve your current lifestyle or invest in a property to rent out, with which you have no emotional connection.

absolutely ^ 

the emotional attachment can be enormous 

theoretica

Yazmina said:

I think I should hold on to the house because people bang on about property so much, like it's the Holy Grail. 

Some people do.  Others bang on about pensions, investing in the stockmarket, gold, bitcoin...

SiliconChip

It sounds like you've made up your mind and you're not going to change it however many people tell you it's not necessarily a good idea, so I'm not sure what purpose there was to asking the question in the first place. For what it's worth I'm entirely with the majority to sell it.

JGB1955

I would sell it.  As it happens, I sold my father's house about 6 months before his death (he had, at that stage, been in a Nursing Home for a year).  Although tempted to 'go back and have a look' I've resisted.  The neighbours who attended my father's funeral told me that the new owners loved their new house, had already become part of the community and were happy with their purchase.  My father would be happy... I'm happy that I don't have to revisit.... it was never MY family home, so guess that makes a difference...

Stubod

Sister and I decided to rent out our parents house as we did not need a "lump sum" and preferred the idea of a bit of extra monthly income and a (hopefully) increasing asset. The house was well built and relatively new. If the tennant moves out we will probably sell. However in your position with an outstanding mortgage I would sell and pay off your mortgage and use any excess cash to eihter invest / top up a pension?

Yazmina

Well, the point of asking the question was to make sure that I have considered everything. I think my preferred option is the right one. Thanks. 

Stubod

Yazmina said:

Well, the point of asking the question was to make sure that I have considered everything. I think my preferred option is the right one. Thanks. 

..IMHO I think you are making the right choice, it is certainly what I would do in your situation.