Letting my inherited house
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House won't sell so considering letting it out..?
My sisters and I have inherited my Mum's house since she passed away. It has been on the market 6 weeks and not one viewing, even though it is a fabulous house. I guess in the current climate it could take a while so we have been thinking of letting it out.
All of our financial situations are different but I am the sole executor and hold the bank account for any monies inherited. Does anyone know what we would have to do about paying tax on the income from it? (If we have to.) Is there a set level? Will it be complicated because there are 3 of us?
Many thanks for any help.
Thanks for all answers. Really helpful advice.
Randall - Buying out is not an option for two of us unfortunately (one of the two being me).
Estate is all sorted too. I deal with all monies as I am the only one who lived near my Mum so it worked out easier for us for the other two to give up their executor status.
I don't see a problem. The main thing is to find a good letting agent. There are both good and bad agents. Why don't all three of you visit different agents and bombard them with questions. Three heads are better than one. Watch out for hefty admin fees, and annual fees for 'renewing the tenancy'.
Shorthold Tenancies are safe and convenient. Be involved with the choice of tenants. If you aren't sure that they are decent - reject them - as bad tenants can cause you aggro and lots of money.
As joint owners you will have to declare your income from property on the tax return. Ask the Revenue for these supplementary pages. Also get hold of the Daily Mail Tax Guide, or similar, to find out what you can expenses you can set against the rent, e.g. Travelling, maintenance, repairs, decoration etc. You can also claim a fixed yearly 10% wear and tear for furniture, carpets curtains etc., by agreement with the Tax Officer. Look at IR250 'Capital Allowances in a Rental Business as this is useful if you use 'machinery or a car' e.g. a computer and peripherals to run your business. The purchase price of a car can be claimed in part if you go to and from the let property, or buy materials. Value an existing car via Parkers Guide from the date you let the property. Be careful only to claim for business use. Exclude private use. Hope some of this helps.How can I claim an inheritance without my well insured creditors finding out about it?
my company failed leaving lots of greedy and well insured creditors chasing me for money that they don't deserve. They were all insured and claimed back their losses. I am due to inherit a house worth around 250K but it has to be transferred into my name on the title deeds before I can sell it. How can I prevent the creditors from finding out about this for long enough to let me sell the house and disappear to another country? if they find out they will try to claim this asset through the courts. These people are already rich and have already claimed their money back through their insurers. They do not deserve this additional money on top of what they have already received.
What you need to do is contact a solicitor about your rights and what will happen next.
Your assets will be taken into consideration whilst in debt and if Bankruptcy comes into play you will lose it to pay off your creditors. They will use that as equity and it will not become yours. I would seriously get legal advice on how to keep those assets. It maybe that they can transfer them into another name for the time being.Can the owner of one-third of a house force a sale if the two other owners of the same house don't want to?
Thanks for the answers I've already received. The situation is that one of my brothers had a joint ownership with our mother, and lived in the property. Sadly she's died, and myself and our other brother each inherit a third of the house. I don't live in the property, and nor does my other brother. I'm ready to let our brother live in the property until he feels ready to sell, but my other brother contacted him within a few days of our mother's death, trying to force an early discussion on selling the property and threatening a legal wrangle to force a sale if he didn't comply. The brother who doesn't live on the property is extremely well-off and owns two homes - can his behaviour in this matter be legally justified?
NO!!
I DON'T THINK THAT ANYONE CAN FOCE HIM TO SELL HIM 1/3 OF THIS HOUSE. THE THREE OF YOU NEEDS TO AGREE, ON THIS AND THE FACT THAT YOUR BROTHER, LIVE'S THE PROPERTY AND HAS BEING NOW FOR SOME TIME, MAKES IT A LITTLE MORE DIFICULT.
THIS IS A MATTER OF MORAL OVER, MONEY!!! I UNDERSTAND YOUR INTEREST IN SELLING SO LIKE THIS ALL OF YOU HAVE THE SAME SHARE OF THE PROPERTY SELL, BUT IN THE OTHER HAND, IF YOUR BROTHER , LIVE'S THERE FOR DO LONG, WOULDN'T BE HARD FOR HIM TO AGREE ON SELLING, SOMETHING HE WOULD CONSIDERED TO BE LIKE PART OF HIS MOTHER.
AND WHERE THEN HE WOULD BE LIVING??? I THINK THAT REASONONG WITH YOUR BROTHER, AS OF TRYING FOR HIM TO BUY THE 2/3, OF THE HOUSE FROM YOU, WOULD BE THE BEST IDEA!!!
IF HE DOESN'T WANT TO SELL THE HOUSE AS A WHOLE, TO DIVIDE THE EARNINGS, INTO THE THREE OF YOU, THEN YOU SHOULD BE ABLE TO SELL, YOUR PART TO HIM!!! THIS WAY THE HOUSE WWOULD BE HIS LEGAL PROPERTY AND ALL OF YOU WILL BE HAPPY!!
A.Z.My parents are Indian citizens who want to sell a property they own and transfer funds to me in the UK.?
I'm an Indian citizen permanently resident in the UK. I've inherited a house in India from my parents, who have never lived outside India. They don't know whether to arrange a sale and transfer funds to me, or transfer the property to my name and then let me arrange the sale myself - any suggestions? I'm not sure how tax works, both in the UK and India, for this sort of thing. Any advice would be great. Thanks.
You say you are an Indian with ILR so I presume you do not have British domicile. If this is the case then you have many options as, if you declare yourself a non-dom, you are only taxed on your UK income and foreign income remitted into the UK. As a non-dom you can hold the property or a portfolio of investments. Avoid bringing capital into the UK. Keep and invest the money overseas tax free.
If you are not a non-dom or the amounts are too small to make paying the non-dom tax worthwhile, your parents should sell the house as otherwise you will be liable for UK capital gains tax on the difference between probate value and the sale price because this will be regarded as a second home/investment property and therefore not exempt. Bringing a cash inheritance into the UK will not attract UK tax although you will pay tax on your investment returns going forwards of course.
I do not know the Indian tax rules.Are letting agents /landlords in the UK very flexible?
Since I had children I have always had a low income,different circumstances at different times but as a nurse my income was always low.Because of that I have spent my entire adult life juggling my money and just keeping going,which means my financial background is not very good.I am now retired and receiving a pension but I have inherited a considerable amount of money which means I no longer need to juggle. I want to rent a house and am more than willing to pay six months in advance plus deposits and expenses ,none of which will be any problem to me now and paying monthly rent after that will not pose a problem either. Would they consider renting to me under those circumstances? i can give character references and of course they will see that I am not a troublesome tenant if they rent me a place as all my problems in the past have been finacial. Do you think if I went into a letting agency and explained this and could even offer a years rent upfront that they would consider me?
I have no desire to own a property as I do not want the extra worry of major maintenence jobs ,I don't mind the minor stuff such as redecorating or unblocking sinks etc but just don't need the hassle of having to get the exterior painted and possibly roof repairs etc. There is a lot of work in keeping your own property and I am getting older. I have more than enough money now to keep until death .
If I were younger I would buy but as i am not and I can afford to rent a much nicer house than i could buy ,renting is the way forward for me. I understand a landlord might want the property back before I want to move but finding another rental would not be so hard.I know I am not a troublesome tenant and will look after the property etc and the rent will be paid on time so it is just this first rental that worries me ,hopefully both landlord and I will be happy and I stay till I die but if not I will have good credit reports etc
Well Hello Fellbuddy,
In case you hadn't realised already, life is ALL about MONEY now, nothing else matters, its is all totally MONEY, MONEY, MONEY.
So the answer to your question is that you will EASILY be able to rent any property you like - all you will have to do is to show the agent or the landlord your bank statement to prove that you have enough money to keep you until death. They will all fall over themselves trying to rent out their property to you if you offer to pay them 6 months rent up front.
Just make sure you don't spend or lose all that money within a few months of renting because the money grabbing leeches will definitely throw you out of the property straight away if they find out that your money has gone.capital gains and UK inheritance tax?
I inherited a 50% share in a house from my mother ten years ago and immediatley bought my brothers half out using a buy to let mortgage fo £90000 and therefore own the house outright.
I have been renting the house out ever since and IM now wondering what my capital gains liability would be if I sold the house which is now worth around £220000. Any details on how capital gains would be calculated in this situation would be appreciated.
Inheritance was dealt with then. That is done and dusted.
You operated it as a commercial let - so all of the gain in value from the purchase to let is liable less allowances. CGT has several modifiers and variables - you need a ruling from an HMRC technician who will want more details.
Contact HMRC.Can I force the sale of my house if my ex partner can not buy me out?
Hi there, I have found myself in a predicament and was wondering if anyone had any advise or experience in a similar situation.
As a first time buyer, I bought a house with my ex partner 3 years ago. She does not work due to disability but inherited some money which we used for a deposit.
She paid £25,000 for a deposit and I secured a mortgage based on my salary. Joint names are however on the mortgage, deeds to the house and land registry. No agreement was made in terms of investment into the property when the mortgage was drawn down and I understand we hold it as joint tenantcy.
Since purchase I have largely made all mortgage and bill payment, alongside investing time and money into renovating the property and increasing its market appeal and value. Her benefit money has mostly been spent on clothes and shoes.
The relationship has broken down and I am ready to move on.
Initially I looked into walking away, signing the house over and lossing out on my investment. However the bank won't let me transfer the mortgage to her as she has no real income.
She wants to stay at the property and advised if I don't move out in 4 weeks she will change the locks and I will find my possesions in the front garden.
I can't afford to move out and rent whilst still paying the mortgage at the property and don't want to destroy my proud credit history by defaulting on payments.
The only option I can see viable is to sell, a topic she blankly will discus. The house was relatively cheap when purchased so negative equity should not be an issue.
Can I force the sale of the house? I never settled in the area, would not want to buy her out and she is not in a financial position to buy me out.
Am I correct that if sold I am entitled to half the equity once the mortgage has been repaid? She may Have put down the deposit, but for the last 3 years I have paid everything else.
Sorry for the essay, but any advise is always appreciated.
why would you wanna live w a chick w a disability?I desperatley need help with inherited cats?
I have always had cats but recently inherited some after my parents in law passed away five weeks apart. I am now moving to a smaller house and cannot possibly take them all with me. I live in Wiltshire and would really like to rehome them instead of sending them to the overflowing animal shelters. I have a 4 month old kitten called diesel, then 3 females, 2 black and white cats aged 6 and 4, 1 tabby cat which is the one I am worried about as she only had 3 kittens 2 days ago. The there is the beast of them all Rocky he is such a loving cat but his front legs are deformed, they do not hinder him in any way except one he can climb jump fight the same as a normal cat but cannot clean himself properly so he needs brushing at least once a week. They are all sweet natured and do not bite or scram.
I just cant take them with me.
Let me know if you are interested
I know this is not the best way but I am out of options. I have advertised locally and got nothing. I dont know if I could hand them over to the animal shelters, who do an amazing job but have lately been overrun with abandoned animals I cannot send them there knowing it could be weeks or months before they find a home. They have been through enough losing both there owners and having to move into a strange house with my 2 cats and 1 dog. I am trying to find the least stressful way for them. If anyone was interested in rehoming my special cats I would insist on vetting them first and have no objections to them getting any of them vet checked. If both parties are happy then great. But if 1 party is unsure the rehoming does not go through.
See if any of your rescues will rehome directly from your house. Our local rescue keeps most cats in their old homes but finds new owners to pick them up from there.Have you started your Winter House Clean down?
Every March to April a lot of people have themselves a spring clean. A spring clean is a thorough clean of your home and all storage areas.
Sometimes the cleaning is not so much cleaning but more a case of tidying up and puting everything you have into order. Its an opportunity for clothing hoarders to go through wardrobes and draws full of clothing to make very tough decisions.
Such as clothes that fit but are to well worn - cut up use as dusters or recyle and throwout.
Clothes that are brand new but have never been worn more than once, keep but try to hang them so that articles are matching ready for wear.
Clothes that used to fit but no longer do, poses a problem, because if you have gained in weight and want to lose weight should you be getting rid of all those clothes that are two, three or even four sizes smaller than what you are now? The answer is no. But you need to be realistic as well.
What if you lost weight should you keep all your larger size clothing? in my view you should get rid of the largest non fitting clothing. For example you are now a size 12, but your wardrobe is full of size 14, 16 and 18's. I would get rid of all size 16 to 18 outfits. It does not necessarily mean put them in the bin for recyling you could take them to a charity shop. The size 14 clothes you have kept you could regard as your casual wear. In particular if it is tailored clothing size 14 is not a great deal different to size 12.
Next, over the years people do seem to hoard things that are of no use aswell. Kettles, toasters, electric coffee pots. If these goods don't work why keep them. Ring your envirocall office up, bag them up and let them be taken away. These things are cluttering up the shed, the greehouse, the larder, the store cupboard below the stairs and your outhouse, you need to clean and tidy up this space. So that they become working spaces for you.
Occassionally, when I have little to do, I do people a favour and they are ever so grateful afterwards, so here's another much maligned area::-
Food cupboards, I'm stunned by people who never clear out tins and jars of foods which are three years or so out of date. Surely they don't intend to eat these foods, so why keep them. Get rid.
Another clear out is the number of broken toys kept in the childs room, would your child really notice if you threw them out. What about reducing the number of visible toys to a more moderate figure and what of that understorage bed section, should it really be full of old comics and colouring books.
You know if adults are untidy and are hoarders it is highly likely that your children will be also. As children copy adults thinking this is the way we live.
For me there is nothing more aggravating than buying more than what you need, because the excess seems to have no value and often gets disposed of at car boot sales, Only to start spending in excess again filling up all the nooks and crannies of every room in your home.
Well this is the first of...Houses are made for the occupants to enjoy. If you enjoy cleaning, clean, but don't forget to mess it up again ready for next time you want to clean.Lodger wont leave.....what are my rights?
my friend inherited her mothers house and as it was a 2 bedroom she and her boyfriend decided to get a lodger.
The guy she chose seemed perfect, climing to make a very good regular income and also having savings. he seemed hardwroking and keen and also said he was very clean and tidy and did not have much belongings to move in so would not take up much room.
Now no contract was writtern but he agreed to pay weekly, but also pay the first month upfront, he didnt pay the first month in advance, but my friend let him off as the move was hetic.
since he moved in he has been nothing but a nightmare, he never paid on time and often never giving her the full ammount, but then going out to parties or buying beer with the remaining money that should of gone to her. when questioned, he would say he left his money at a friends ad then would not come home for a few days.
She later on found out that before moving in he was working as a sky installer, but got fired as he go a driving ban.
he was now working for his uncle who was paying him just £20 a day as a labourer!
on top of all that he is very messy and has now filled up the garage and atic with his belongings (even though he clained me didnt have much origanally)
he wastes the water and electric, making hot baths and leaving them till they go cold and then pouring the water away and pouring another, as well as leaving on all his lights, tv, highfi and laptop when not in.
now recently because of the weather he has not been working at all and things came to a head when she found out that he was using the house phone to call aprox 6 mobile phone numbers a day, (he was told he could use it to call house numbers as it was free, but not mobiles.) as well as not helping around the house and owing 3 weeks of rent.
She tols him that he had one month to move out, the month is up this friday, but she has found out more things that have made her want him out now. he is still using the house phone to call mobiles, even though she hid the phone in her bedroom, her and her partner also found found out that he had connected a wire to their modem to get piority of the internet, to do this he drilled holes in the celining in the living room to the wardrobe in his room.
when they were trying to find where the wire went they went in his room to find loads of electrical equipetment they surpect is stolen as well as nedles and steroids.
understandably they want him out. they sent him a messege yesterday morning (he was out) saying they did not want him back and they would call him to arrange him picking up his belongings.
they locked all doors and left the keys inside the locks so he sould not open it. at 2am this moring he tried to get in and when he failed he started knocking on all the doors and windows till they let him in....he hasnt left the house since and has told them he will leave in 2 weeks, again his leaving day was this firday!
she is now scared to leave her own home (she has surspected he has taken...Your friend should have got the police involved weeks ago. Basically this bloke has been:
1) Living in her house rent free
2) Using water, electricity, gas, phone that he hasn't paid for
3) Using illegal drugs
4) Stealing from her and others (allegedly)
5) Refusing to leave when asked
On top of that he has NO paperwork at all saying he has a right to remain in the house! It's almost as if she's too polite to kick him out.
Personally I would get some large male friends, to move his stuff to a safe place* (e.g. one of his friends houses) where he can collect it at his leisure, and then get the police to investigate the drugs and "possibly stolen" stuff and ensure he cannot return to the house.
This guy has not only taken the p*ss, he's taken the toilet, the sink, and all the taps and fittings as well. Get shot of him.
*DO NOT place his stuff outdoors or in a skip, as one person suggested. However satisfying this might be for you, it is still his property (apart from the stuff that might actually be nicked) and you could face a charge of criminal damage.
I have never let a house but just from what I have picked up from others is that you can go to an estate agent and they can give you a load of help / options or you can go to the council and say you wish to rent a house out and how do you become a landlord and find out from them what all the ins and outs are.
Alexender
I have to agree with the previous post.
I also think it would be a good idea to talk to an estate agent, a lettings agent also the local council. Collate your information and see which method best suits you. I am sure either way you will make some money at the end of the day.
I have heard of people who would rent this size of house and be able to pay the rent fine. So providing that you dont have to do tons of repairs everymonth I think it will be a good earner.
How ever I do suggest that once you decide on the route you wish to take i.e with the council or an estate agent that you declare any earnings to the tax office and may be before hand telephone them to see how much you would have to pay as I understand it the money from your property being rented out would be extra earnings.
Make sure you keep everything legal and above board then that way you get it right.
Good luck with the letting.
William
If you have to delcare any extra earnings to the tax man or woman make sure you do. I think the estate agent will be able to give you the best advice and if they are a good one do it all by the book.
Good luck
bordercollie
Darrell
I think you can either use the estate agent as a letting agent so they take a lot of work out of your day or you can let it yourself but I understand you may have to register as a landlord with the local council.
You may have to speak to the council on that one I am not sure but certainly speak to a few estate agents as I am sure they will be eager to speak to you as they will want to be your letting agent hense they make money.
Hope that is of some help from me as well.
Mark
Have a look on the home page of this site as there is a really interesting article called " Tips On Buy To Let "
I only scanned it quickly but it looks rather good and I think you may find some rather good tips there.
William
Personally I think that renting out privately is the best option. Why pay estate agent a high commision when you have the internet? Advertise your property online, use it to find information on rentals and use it to find out about the law. Once you have found suitable tenants conduct a background check (with thier permisiion of course) and download a rental contract.
Well Mouse it looks like renting out is a good idea as you get some extra money coming in.
I would take the advise of SteveDaWonder and go on line to see how much a similar property in your area is going for rent. There must be some information on the internet some where that tells you the in's and out's of what you have to do etc. I would have thought that even if you went to the local council and said I am wishing to rent my house out can you give me any advise as I wish to do it all correctly and don't wish to get it wrong I am sure they may be able to give some advice or even go to the C.A.B now they are a free service and should certainly be able to give you some really good advise.
Good luck with the renting out
Jamie