Renting/selling advice.

_Penny_Dreadful

I agree with your mum. She’s 80 so what real benefit would she see after spending money doing up the property to receive £400pcm gross? Not much. 

Clear the property out, see if the will beneficiaries can bank the cash, and sell the cleared property as is. At 80 I’d rather have £65k in hand than spend money to get £400pcm and have to deal with tenants, letting agents and legislation. 

Herzlos

Realistically, unless you know someone in the trade and get mates rates, or do the work yourself, you're unlikely to add more value than you spend. Plus you've no idea if the buyer would want to just rip your new stuff out anyway for something they want. 

Say it's worth £130k in good condition, you may be able to sell it now for £90k, or you could spend £50k trying to add £40k value to it.

There is cheap stuff you can do to make the place easier to sell though; clearing it out and freshening it up inside and out. Maybe give it a repaint if you can be bothered. 

Renting will be a pain too, especially as you'd need to do the work anyway. Just get a local estate agent to sell it as-is. 

saajan_12

bargainhunter121 said:

@saajan_12 she has her own house. 

bargainhunter121 said:

Albermarle said:

saajan_12 said:

bargainhunter121 said:

My father recently passed away. The family home was owned by him, my mother and brother. Now that he's passed my mum and brother are not sure what to do with the property. It would approximately e worth £130k if renovated. At the moment its not in great condition (would need new kitchen, bathroom, heating and one new window. At a minimum). My mum isn't keen to get the work done (as we know no one to do it really). We'll obviously take a cut in price if were selling as is. 

Ive suggested renting as its usually around £800 p/m (its a 3 bed semi with garage) but of course that means doing the work and she says shes of an age where she wouldnt get the benefit of renting. My father also left a sizeable amount of cash in the house too (as he didnt trust banks🫣. )

Bottom line we don't know what to do for the best with the house or the money. All we know is none of us want to live in it. What the best way to use the cash to make the most of it? Another property buy or savings accounts? Stocks and shares? We dont know much about these though. 

Where would mum live if not in this house? 
Would the money be needed to purchase something for her? 

This.
If your Mum and brother are living in the house now, where would they go if it was sold or rented out.

Regarding the cash, whilst you are deciding what to do, at least put it in an easy access savings account, so it is earning some interest.
All regulated savings providers are covered by compensation up to £120K in case anything went wrong, which is highly unlikely anyway.

Savings | MoneySavingExpert

No ones living in the house. My dad lived alone in the house for various reasons. My brother and mum were part owners too though. 

okay so that makes things simpler, as it just becomes a surplus asset. Get some agents around to value and if they suggest easy things eg a paint job, that might be worth doing, but beyond that just sell.

Settle the relevant taxes (CGT for mum and brother's shares). Then calculate how much is left for each of them. 

If you give an idea of mum and brothers incomes / assets / plans, we can suggest how to invest the money. The 'profit' from renting out the property can be more or less replaced by the return on other investments wihtout all the hassle. 

mlz1413

I agree with the sell as it is option. And sell as it is.

The house might be worth £130k done up but spending £30-£50k to tosh it out seems a pointless waste of money and time as you will probably only get back what you spend.

Also your cheap new heating system,  kitchen and bathroom won't be what anyone wants, it will just be basic. So sell it cheap and let someone else deal with the plumbers, electricians, builders, roofers etc.

Definitely don't rent.  The house needs an EPC of C or above and too many rules are changing,  you could make you mum and brothers lives complicated if you get a bad or unfortunate tenant. 

Your mum is 80 so she may prefer to just have access to the cash that was left (you say it was a lot) and just enjoy the freedom of being well off.

Assuming your father left a Will the house and money will be split to his wishes. If not it will all go to his wife or next of kin.

Keep_pedalling

They need to confirm how the property was owned. If they held it as joint tenants then your mother and brother now own it, if they held it as tenants in common then your father’s share will pass as per his will or, if he did not have one by the laws of intestacy.

Did he have a will? If not what was his marital status?

dinosaur66

i agree with others do not be a first time landlord

plus this house will not be an epc C which will add a further 15k to her spend if she became a landlord

where i disagree is selling it at a knockdown price 

 putting my investor hat on at the 130k range for the property fully renovated ceiling price

 flipping is very hard now

i would guess this is in an street with a ceiling price with many similar propertys 

5k stamp duty / 4 k buying and selling fees/ 

it would cost me 20k minimum to a decent standard doing it myself / i have a brother who could do the boiler

and take me 3 months if i was there most days and depending on state of garden front and back and garage   capital gains on the way out say 5k so total with no hiccups is 34k spend

plus 3 months of my own labour for free 

time and effort and profit is not worth it 

small time landlords same thing not a viable project 

this house sounds like a first time buyers house who can do or have family members who are trades and i would guess 110k and it would sell

they have no stamp duty/can put there own stamp on it and getting a 3 bed house with a garage and should have a first time buyer isa bring down there costs.

20k below ceiling ,but a realistic price IMO