Property News · April 2, 2018

I've inherited a house – should I sell it or repair it and rent it out?


I’m 26 and earn just over £20,000, so a buy-to-let mortgage would be a big undertakingQ I have inherited my grandmother’s house (which an estate agent has valued at £160,000 at the most), while my brother also inherited another small property that she had been renting out before she died. She was blind during the last few years of her life and her friend took over all her financial affairs. Sadly he mismanaged these and a large amount of unpaid tax and other fees were due to be paid after her death. Luckily a friend stepped in and lent us the £43,000 needed to pay this off and allow us to inherit the properties. I therefore need to raise money to pay half of what we owe this friend, plus £10,0000 to £15,000 to bring the house up to a suitable condition to rent out or sell as it has been empty quite a while. I’ll also need several thousand pounds more to repair my mother’s home, which is in a bad state of repair. The question is whether this money should come through a mortgage or the sale of the property? Friends and family seem to have such differing views on the matter, which makes me very anxious.The house is up in Perth in Scotland, but I currently live and work in London and don’t have plans to move back there anytime soon. I’m 26 and earn just over £20,000, so a mortgage would be a significant undertaking. However, as I understand it I could get a buy-to-let mortgage if I am receiving rental income of course. Would it be better to raise a mortgage and let it out via an agent (perhaps I should get a mortgage now since I will undoubtedly wish to get on the property ladder at some point) or should I sell and put the money in the bank where it might earn less, but could be a safer, hassle-free option? Continue reading…

Source : theguardian.com
Read more…I’ve inherited a house – should I sell it or repair it and rent it out?

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