To sell my inherited family home

[sayerville]

I know how fortunate I am to be in at this position, I struggle with sentimentality and still have lots of my parents/brothers items around me including the house which is currently rented.
I rented because I didn't really want to part with it and it seemed the right thing to do as I doubt I would get that return if he cash were in the bank. It's currently in it's third year of renting, with current tenant being there for about 18 months.
I find it really hard going back there, each time I come home I cry so my husband said he'd deal with it but that lasted a short time. I have considered using an agent but I would still get the reports, have that connection albeit not as much.
Each time the tenant complains about something I feel sick to my stomach, I hate being a landlord with the responsibility but feel it's the right thing to do in some ways to retain the capital for what would be a help to my DD later on. The income is maybe 6K after taxes and expenditure if I am lucky (I know I am though!) Yield is about 4%.
I have long thought about selling and buying something else to flip (too much homes under the hammer) but I don't have the connections in any trades and a lazy arse husband it's something I have always wanted to do as I hate my job, I'm just dreaming aren't I? What should I do?

[sayerville]

Thank you DriggleDraggle

[Piffpaffpoff]

Could you sell it and buy something else to rent out? So you still have the rental income and hopefully capital growth but without the anxiety and sentimentality around it?

[IamtheDevilsAvocado]

It's a process gradually moving from the dead and their possessions to the living... It's all part of the grieving process...

3rd year? Guess you have nothing to lose by continuing to rent it.... Although to open up your options - have you thought re discussing with a decent estate agent what your options are/likely return if you sold and perhaps bought other property/ies? It may he in time, you may be in a good position to set yourself up doing property... Altho I understand that the law is changing so career landlording /doing up is not so lucrative...

A pal was left a bungalow on a sought after estate....she discovered that by liquidising this and her house (paying off small mortgage).. She had the best part of 800k to play with... She's still deciding how to live/invest this

[sayerville]

Yes, I have thought of reinvesting, the reason I haven't is starting afresh with a second property (already own our home) is the new stamp duty from £0 so I'd probably lose out for a few years before I recoup but is this better than what I am doing now? I keep changing my mind all the time and it's a big decision to make.

And Imthedevils it's a nice 'problem' to have but tricky given the £85K protection per account

[Mookatron]

The house is just a thing. Your parents and brother are not there any more (and I am so sorry for your loss).

If it is not helping you practically or emotionally then it's time to let go. If you can turn that into something that you're excited about and moves you forward, like buying a new house to rent out, you should do it. Perhaps make it a 'mild' project rather than a huge one...

[Namethecat]

I inherited our family home, and due to no longer living in the area it seemed the right thing to do was to sell it. Got someone in to do a few minor diy jobs and put it on the market. Once it was sold and due to sign it over to the new owners had a last visit. It was very emotional , I went around the now empty rooms remembering the happy times, thinking of the people and my parents and of me as a child and feeling that I was abandoning everyone in it. Closing the door and walking away was hard. But little by little and as now time has passed I remember my parents, the house, and my own childhood with fond memories. You don't need the house for those memories - that was just the container . Your heart is the container for that now. Sell it and allow another family the chance to build a container.

[DustyMaiden]

I think it makes good financial sense to keep it. Maybe you could have some grief counselling to help you come to terms with it.

[LadyLance]

I think driggledraggle's idea is good- why not try putting it with an agent, at least for a set amount of time initially, and see how you feel in six months or a year? It will be more expensive, so you will lose out on some of your income (maybe 10-15%) but it might be worth it if you never have to go to the house or deal with problems.

I don't think now is quite the right time to buy a first investment property to flip. House prices are falling/stagnating, and who knows what problems brexit will bring in about a year?

Buying another rental property could be an option but I agree that stamp duty makes this difficult. You would also have to spend money on fees etc, and could lose a lot if a sale fell through last minute. It also sounds like you don't enjoy being a landlord generally.

So, I think the best course is to put the property with an agent who will provide a full service for you, and then review the situation if you're still unhappy in a year's time.

[ElsieMc]

I kept my dm's house on for quite a while. I went weekly to keep it clean and put it on the market but it didn't sell. I could feel her in the house and after a while my youngest dd told me "Mum, its time to let the house go". It was becoming an issue for us all.

I sacked the first agent and put it on with a new agent on the Friday, it was sold on the Tuesday.

The week before it went, I went there with some house clearance guys who took larger items away from me. Completion was only two weeks from sale agreed. He just looked at me and said "Sad times".

I think you need to sell up op. Consider your options once the house has sold. Keeping something that makes you unhappy and sad isn't any good and it is time to move on. Does the tenant want to buy it?

[meredintofpandiculation]

I sold my parents' house. No regrets about not living there, and I just look with curiosity what later owners have done with it (rightmove is great!). But I do feel sad that I no longer have the right to turn up there and look over it.

So I suppose I'm saying - get an agent to deal with it, but don't make irrevocable decisions until you're ready.

[Mummyoflittledragon]

It isn’t the right time to be buying houses to flip imo. The next house I buy, I will rent out, not flip.

[fruitbrewhaha]

From an investment perspective, 4% isn't a huge amount, how much involvement from you is required. Is there a lot of maintenance issues?

How much is it appreciating each year?

If the house is worth £400K and you sell you'll spend a minimum of £4K on an estate agent (unless you use an online one) plus maybe 1 to 3K on any bits that need sorting out.

With you £396K you could buy two flats that are easier to rent out, perhaps a better yield, and more appreciation. You could buy with a small mortgage on each one as it's cheap to borrow money at the moment. If you bought two flats of £250,000 the stamp duty would be £10,000. You could borrow £60,000 on each so you wouldn't have to find the £10,000.
It depends on where you are? Is there is city near by with these kind of properties available? Talk to an estate agent regarding property appreciation and yields in your area.
It does sound like you need to do something, if it's upsetting you so much.

[Mailawaymailawaymailaway]

I assume you can't move into it?

If you can't use the house as a family home, whether by living there yourself or having a family member live there, renting it out doesn't get around your dilemma of still wanting it to somehow be yours, without it actually being yours.

I would have a serious think about the long-term possibility of how the house could reenter the family somehow, and if there's no real likelihood any of you will live in it again, start to plan a clear break by putting it on the market.

Does the house have any family furniture in it that means something to you? Because the tenants will break that accidentally at some point. Whilst tenants are living in it, it's not yours - it's just that you feel it's yours, and that's hard. With an emotional attachment, you should either live in it or sell it - the in between option just brings heartache.

Letting a property should never hurt this much - if you can't make cold, clinical business decisions about it, you shouldn't be doing it.

[Mummyoflittledragon]

fruit
Good idea but I wouldn’t buy flats unless I got them at a good price. They can become very difficult to sell further down the line. I know as a ll gardens are a hassle though.

[OuaisMaisBon]

Financially, even if you pay a property manager 12% fees, I think it probably makes more sense for you to keep this property as it is already a second residence for you and the change in the law on Stamp Duty might make quite a difference to you - also, I don't know if there might be Capital Gains on a property you've inherited?
My sibling and I inherited a property jointly when our mother died a few years ago and despite my misgivings, we kept it, refurbished it so there is very little of our mother left, and it is now rented out and completely looked after by a property manager so that all we have to do is enjoy the income from it, which our mother would have been pleased about! I understand what you are saying about the memories, but these will fade with time whether or not you sell the house - your heart can be the "container", as Namethecat so eloquently puts it, whether or not you sell the house!

[implantsandaDyson]

My dad was in the same position - the house is now nearing sale completion (fingers crossed). His only regret is that he didn't put his mums house up for sale sooner. It's a difficult decision to make but he hated going back to the house, it upset him and we all were much more relieved than we even thought when he decided to sell it.

[RefuseTheLies]

Hi op - as someone who’s also lost parents and a brother, and have an inherited house that I rent out, I’d like to gently suggest that your upset has little to do with the house and more to do with unresolved and ongoing grief.

Get an agent to manage the rental in the short to medium term and contact CRUSE. I found them incredibly helpful.

[Time40]

It seems to make financial sense to keep it, for the moment. I'd put it with a rental agent, so you are not so closely involved.

[sayerville]

Thank you all so much for your replies, they are helpful.
I do find it difficult, it's like I am OK then the minute I hear from the tenant (I don't like her anyway she's way to sassy) I feel anxious.
I think it's appreciated about £10K in the last 5 years I am unsure to be fair.
I don't think other people around me 'get it' but I am glad that you lot seem to, I thought as time went on I'd feel different but I don't.
Re involvement since last May there have been 11 issues with her, some trivial and some genuine (boiler) I try not to go round, DH done last 2 inspections but it always turns into a moaning session from her, I always respond quickly and feel I am a good landlord, provide a gardener but have to nag her to cut the grass as that is all I ask.
I kind of put it on the back burner then each time there is an issue then it rakes it all up.

[50ShadesOfEarlGrey]

I have been in exactly the same situation, I found it really difficult too, so I do know what you are going through, although in my case it coincided with the last property crash and it wouldn’t sell, so I had to rent it.
For the first couple of years I did all the organising and hated every moment of it, had lots of issues with the last tenants, who phoned me twice a week every week complaining, wanted to reduce the rent, and they left suddenly leaving whole place filthy and damaged. That nearly broke me TBH.
I took the plunge and put the whole thing through a letting agent, who deal with everything. I get maybe two calls a year, just asking if I’m happy to renew the lease, or if an inspection has raised an issue. Have never spoken to or even seen the people renting, I just organise ‘new home’ flowers for when they move in. I chose a lovely letting agent, as that was important to me.
Over the years I have found that the property doesn’t really mean anything to me any more, but the key to that was paying the agent to do everything.
I would work out what is best for you financially, and if that means renting it out, then find yourself a good agent, pay your 10/12%, and think it money well spent.

[OuaisMaisBon]

RefuseTheLies is right, OP. Many people do not get over their bereavements within a short time, and continue grieving for years and years after the death of someone close to them. It is just that often society expects you to put it in a box asap and get on with life as if nothing had happened, which makes it much harder to grieve properly.
to you and anyone else who is still grieving for loved ones.

[OutyMcOutface]

4% yes is a bit low of you really care about making money. You should sell up before the next price crash if you can and then invest the money/get a broker to do it for you.

[sayerville]

The grieving is hard, I know I haven't even processed my brothers death just a year ago, he had complex needs being disabled so I was more his mum after she passed. I am crying now, as it comes in waves, horrible.
So the added thing with the house is hard. Nice to have and I have memories of my Dad working bloody hard as a painter and decorator to pay for us to have that so I am grateful to him.
50 shades thank you for this, I guess it's finding the right agent they go from 9 - 12% round here.
refuse I did contact CRUSE but as I am working they did not have appointments around me from what I can remember, however I feel I must try again with this, I get emotional every morning when I look at their photos when I out on my make up but bottle it up.

[Mummyoflittledragon]

You are very blessed to have had people, who loved you this much. Having read your update, I think I’d lodge the house with an agent for now and use the income to pay for private therapy. You will find someone, who can work with you weekends/out of hours etc. I know the income rental isn’t very much. But right now, the best thing you can do is admit you yourself you’ve not finished grieving. I wouldn’t sell until you’re a little bit further down the line. You really don’t need to right now.