No pension ? inherited flat and shop but flat needs work.

lizeratsi · 9 May 2018 at 10:23AM

I have been left flat and shop. Combined the site is worth between 130 and 140 Max.

The flat needs about 10 grands worth of work, which I dont have Im a stay at home parent and husband earns 25 grand a year.

we have two children.

I have to pay council tax and bills on the flat.

If I create a leasehold and sell the flat - I still have to separate the water which is a few thousand, pay for the leasehold, the flat was valued at 40 grand. I have a potential buyer for the flat.

Which means I retrain the freehold and keep the shop which I think gives a good income.

But the sale may go sour - if I sold the whole thing what other investments could give me that 600 pm yield.
The flat is hundreds of miles away and may not be mortgable for me to get loans and currently I am not working.

WWYD? thank you . I have no pension and no proper career to return too once children old enough it will be low paid work thanks.

( my initial idea was to get some money into a SIPP) from flat sale - and ISA stocks and shares then once other monies paid eg splitting water to top up from other rent.

kidmugsy · 9 May 2018 at 11:10AM

I'd see if I could persuade the flat buyer to pay for the plumbing in return for a price reduction on the flat. Or I might decide that running property that's hundreds of miles away is not appealing for an inexperienced and busy mother of two, and just sell up as is.

Do you own your own house? If not, buying a house for yourselves may be a particularly good use for the capital. If you do, would paying off some of the mortgage get you a usefully lower interest rate by virtue of reducing the loan-to-value? Or, could you use the money to move to a bigger house and then take in a lodger? That might be a neat way to get extra income for the pair of you, with no tax to pay on it.

Or, if you are keen on owning and letting property, could the £130k be used to buy something profitable near where you live? I don't know the state of play now but there was a time when buying lock-up garages seemed a profitable use for capital. I suspect that your present notion of letting business property rather than residential property might be wise.

Zanderman · 9 May 2018 at 11:25AM

Your two threads on this today - this one (https://forums.moneysavingexpert.com/showthread.php?t=5840422) and this one: https://forums.moneysavingexpert.com/showthread.php?t=5840420 seem similar to the thread you started last year here: https://forums.moneysavingexpert.com/showthread.php?t=5667966

If they're all about the same flat perhaps you would get better results and responses by using just one thread!

lizeratsi · 9 May 2018 at 11:31AM

Yes I have two threads because One is asking can I get a yield of 666 from investments and one is asking about the fact I have no pension.

The over all property is worth minimum 130 K.

The shop side is fairly low in put from me, I would not really want to rent someone a home however - the manegment fee - the thousands to do it up.

We own our own home, we have low mortgage - rate about 2.3 % and about 50 left to pay.

If I sold the whole thing I could move or do much needed kitchen extension/ or just new kicthen but extension would dramatically improve our day to day life.

But I would be scared of loosing the value of the money where in property its safe...

The shop by itself is great but the flat - being run down needing work - makes my heart sink. I am not DIY savvy, DH is useless, we struggle with diy in our own home it took us ten years to work out how to get a new tap in the kitchen.

robber2 · 9 May 2018 at 11:58AM

Sounds like its causing you all sorts of stress and hassle already.

I'd just sell the whole lot and be done with it then either use the cash for a Buy to Let or drip feed it into SIPPS for you and your partner.

Rob

xylophone · 9 May 2018 at 12:20PM

where in property its safe...

Um...

I am not DIY savvy, DH is useless, we struggle with diy in our own home it took us ten years to work out how to get a new tap in the kitchen.

You have no experience in managing property? Do you want to be a landlord with the hassle involved?

Could you not just sell and use the money for professional work on your home and also consider saving for your retirement through a pension?

Dox · 9 May 2018 at 12:21PM

Sell and be done.

Paul_Herring · 9 May 2018 at 12:44PM

WWYD

Personally? Sell it. At auction if necessary.

It's hundreds of miles away, no experience at running a rental property, and at best it's going to be a constant worry.

Lungboy · 9 May 2018 at 12:52PM

lizeratsi wrote: »

in property its safe...

Why do you think that?

A_Nice_Englishman · 9 May 2018 at 12:58PM

Commercial property is far from safe. Shops are closing down every day.

I'd sell the shop and flat as is, pay off your mortgage and make the improvements you want to your house.

Use some of the surplus to invest in yourself to increase your earning potential through study/training,

Once you're in a (hopefully we'll-paid) job put as much as you can into your pension, and get your husband to do the same baring in mind you'll have no mortgage to pay.

Use the rest of the sale proceeds for some luxuries and as a nest egg for the children when they go to university/get married/ buy property / whatever.

lizeratsi · 9 May 2018 at 1:22PM

The shop is actually in a good site and has never been empty for a long time. 4 months, 5 months max over ten - 20 years but of course there is always a first time.

I was told whatever the shop only value is - say 80 ( probably less than that) putting that into stocks and shares would never give back the yield the shop does .

I am quoting here I am struggling to navigate my way round all this.

No pension ? inherited flat and shop but flat needs work.

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free