It can be tricky deciding what to do with a property you have inherited, particularly if it was once a childhood home.
And if the home is a shared inheritance, you will have to agree with the other beneficiaries as to your next move and put that decision in writing via a solicitor.
Is it best to sell an inherited property or move in, do it up or let it out?
There are generally three options as to how to deal with an inherited property – sell it, move in or carry out renovations and let it out.
If you want to move in, then you will usually either rent or buy the remainder from your other beneficiaries. It’s therefore a good idea to have the property valued by an independent local agent or surveyor so there aren’t any disagreements about what you need to pay.
If as the sole owner you intend to sell or move in yourself and secure a mortgage to release some equity, the house will need to be registered in your name via the Land Registry.
However, if the property is currently mortgaged you will need to check whether an insurance policy covers to amount of money currently owed.
If there is not, then you will need to contact the lender and talk through what happens next. If you wish to retain the house and need a mortgage, it’s advisable to talk with an independent mortgage broker such as Mortgage Advice Bureau so that you know all the options available.
Does the house need any renovation, such as making it legal to let? Redecoration is one thing but there may be lots of hidden costs, particularly if don’t know much about the property.
You can’t or shouldn’t just move in or let it without checking it’s safe for you to do so or let legally to a tenant, even if it’s a friend of family member.
A RICS or RPSA surveyor can save you a lot of time and effort in determining what has to be done. If you move in yourself, then do get an additional survey on the gas and electrics, if letting, this is essential as you will need safety certificates to let it legally.
Time and money: If decide to let the property, it will need regular maintenance, and should anything go wrong you will need to have enough money to pay for the costs. Over time this may cost tens of thousands of pounds for things such as a new boiler, roof or windows.
Investing: Property eventually is nearly always a good investment for the future. Letting can offer a consistent income, but the cash you earn will be taxed and a portion of any profit on the property when you sell it is likely to be subject to Capital Gains Tax (CGT).
Bear in mind that the extra income from the property could mean you lose some tax benefits you currently receive.
Before you decide to keep the property and make money from it, look into the tax implications with an independent financial advisor.
When you inherit a property you also take on responsibilities. For many people the best option is to sell the inherited property to pay off any existing mortgage.
However, it could be a challenge preparing for and managing the sale. Property Saviour gives you an option to avoid the hassle of traditional house-selling methods. We will be able to buy your inherited property for our own portfolio.
Will you buy an inherited house that needs improving?
Property Saviour also has an option where the company invests in renovating the property. This involves purchasing the majority of the property leaving the beneficiary to keep hold of the remaining equity and using it as a passive property investment. No matter what condition a property is in, Property Saviour will buy any house without delay for an an honest and fair price.
This is because the company specialises in buying inherited properties that are difficult to obtain a mortgage on because they are in a poor state of repair.
A company spokesman explains: “We are not estate agents. We are real cash house buyers operating nationwide covering all parts of England and Wales.
“We will provide you a hassle free experience when you are thinking of selling. We have cash funds ready and available to buy your property. In most cases, Property Saviour will:
- Agree to buy your property within 48 hours;
- Be in a position to exchange contracts within 10 days from acceptance of our offer; and
- Complete the purchase within 28 days from start to finish.
The spokesman continues: “Our service is free and that is why we never charge any fees. In fact, we pay £500 towards your conveyancing fees.
“Regardless of whether you have inherited a house, it is an investment or even if the property is in negative equity, we are able to help.”
Property Saviour can be contacted on 0113 320 6700.