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Original poster

Inheritance issue, house with tenants

37 replies

earlydoors42 · 19/06/2021 08:14

My FIL sadly is terminally ill. My SIL has been thinking about inheritance already. It's a bit complicated. FIL has a house in rural Wales which his friends live in as tenants, but little else of value. His will is to split anything he has 4 ways, between my DH, SIL and their 2 stepsisters who they don't see or have much contact with.

SIL says the tenants are concerned about losing their home. She wants us to keep letting them live there and split the rest 4 ways. This seems a major hassle to me. I would rather sell the house and have our share. We don't have much money. I don't even know if it's possible to do that, to own a quarter of a house? Would we pay a quarter of maintenance etc? My idea is SIL buys us out if she wants to keep the tenants there. Any suggestions what is best to do and what is legally possible? Thank you.
PS I do feel bad thinking about his property when he hasn't even died. I didn't even know about this house until SIL brought it up. It's probably worth under £100k.

OP posts:

Mydogisagentleman · 19/06/2021 08:25

It all sounds very complicated and I can’t imagine that the rent would be very much.
Also, you may not be able to get the tenants to leave, I think that there is a sort of tenancy agreement that allows the tenant to live there for life, although that might be for tied estate places.

Firefliess · 19/06/2021 08:35

The sort of tenancy agreement that allows tenants to stay for life was ended in the 1980s, do unless they've been there a very long time the landlord can ask them to leave. Because of coronavirus landlords were required to give tenants 6 months notice (usually it's 2 months) I'm not sure whether this is still the case. If one of the people who inherits a property wants their share then it legally has to be sold unless the others can buy them out. Other options to be nice to the tenants include giving them longer notice than you legally have to and making it clear they can leave whenever suits within the time, or trying to see if you can sell to another landlord (with them as sitting tenants) but this might be hard if they're not an area with a lot of renting. I'd let your sister know you'd be keen on the cash for now and let her ponder on that a bit.

PlanDeRaccordement · 19/06/2021 08:37

First, you have no say as it is your DH’s inheritance not yours so be mindful that he may not want to sell the home but keep it in the family.

Secondly, yes you can own any fraction of a house from 1% to 100%. The four siblings would be put on the deeds as tenants in common with a 25% share. Each sibling can then will their share to their partner/DC. The maintenance costs would be paid for by the rental income. A good property manager would set aside some rent every month in a maintenance account, and then send the four siblings their share of any left over. So by keeping the house, you’d get an property investment for free with potential monthly income.

Thirdly, sitting tenants can only be evicted according to their tenancy agreement and subject to any current legislation. Like now it is 4 months minimum for no fault eviction (Section 21) and this goes back to the regular 60 day notice in September. Although, I did read that a law is being considered to ban Section 21 and all no fault evictions. The pp had a point also, some tenancy agreements are for the life of the tenants and you cannot evict them unless you have many years of proof (about a decades worth) that they are damaging the property making it unliveable AND refusing access to maintenance contractors you hire.

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Original poster

earlydoors42 · 19/06/2021 09:33

Thank you for all your help so far! Yes of course it's my husband's inheritance, not mine. But we share money and I manage it. He does not want the house to stay in the family. He's not from Wales. His dad went to live there when DH was a child and rarely saw him. So it's not somewhere he has any ties to or interest in or even knew about really.

I think there are implications with tax if he keeps a share of the house and would mean doing a tax return every year which is a pain - I would end up doing it like all the admin round here. It would be little return each year (a quarter of a small rent minus some kept back for maintenance) and we could make better use of a lump sum.

I don't think the tenants have been there since the 80s. It's since his dad moved back. Maybe the 90s or early 00s. I don't even know if they have a tenancy agreement.

Who would the "good property manager" be that is referred to? I am pretty sure there isn't one in place now. None of the siblings lives anywhere near. It sounds more feasible for DH to say he wants his share and the house to be sold or his DSis to buy him out (she has a lot more money than us). I know nothing about the stepsisters, never met them, DH hasn't seen them or had any contact for maybe 25 years. I will talk to DH and he can let his sister know what we are thinking.

OP posts:

JewelGarden · 19/06/2021 10:33

Does FIL get any input into this considering he is still alive and it's his friends living in the house

VettiyaIruken · 19/06/2021 10:37

Do you have any idea what the step siblings will want?

Your sil does not get to decide what's going to happen.

MrsMoastyToasty · 19/06/2021 10:42

Your FIL isn't even dead yet and you're all planning on how to divide his estate. Have some respect!

freeingNora · 19/06/2021 10:52

I think this is a moot point as the old chap is still alive and it will have to go to probate whichever that's likely to take time which unfortunately your FIL doesn't have. It's very uncouth to discuss inheritance before the person passes

MarianneUnfaithful · 19/06/2021 10:53

Personally I would not get into a debate with SIL before he is even dead.

Good lord.

Apart from anything else and looking at this from a cynical / selfish POV, he could change his will at an hour’s notice. If SIL went to him and said “earlydoors wants to evict your friends”.

Just don’t have any conversation about it while he is still alive. And afterwards, your DH needs to have the conversation, not you, even if you do the admin.

Original poster

earlydoors42 · 19/06/2021 11:39

Thanks for more info! I agree it's not right to discuss before his death. It was SIL who brought it up and has basically messaged DH saying "the tenants have contacted me and want to stay there so that's ok with you isn't it". So that's why we are thinking about it. He was actually given 3 months to live over 18 months ago so that's why the tenants panicked I think and why SIL brought it up. Seeing as it's been brought up, I was just checking legal and tax implications. Nobody has mentioned it since this initial message, it's not like we are sitting round talking about him dying and planning how to spend his money. It may be he owes money to the care home and the house may have to be sold for that in the end, which is also fine as it's his money.

Also of course I know it's a discussion for DH to have. But we are a team and it impacts both of us. Plus he isn't on Mumsnet :-) But please assume I am bossing him about, taking over his money and being "uncouth" all you like. I expect nothing less of Mumsnet. Thank you to those who actually advised.

OP posts:

Original poster

earlydoors42 · 19/06/2021 11:42

Step siblings, I have no idea as no contact at all. FIL again no idea. The will may have changed, who knows. It was SIL who said the will is split 4 ways. FIL and his wife had wills that everything went to each other - then would be split between all their kids. His wife died a long time ago. Who knows.

OP posts:

VettiyaIruken · 19/06/2021 11:46

Probably not likely then that they'd want anything other than their share of the value of the house.

dancealittleclosertome · 19/06/2021 11:51

I agree that the admin involved in keeping your dh's potential share is a hassle, and one which will probably fall to you, and which you could do without. I also think it's possible the step children will feel the same way you do, so I would wait to hear what they have to say. Equally, you're right - it may have to be sold anyway to pay care home fees. Best find that out first I think.

L0bstersLass · 19/06/2021 11:55

Shocking greed being displayed here. Money really does bring out the worst in people.
You didn't know about the house until recently and now you want to evict your FIL's friends from their home?
Your FIL is planning on leaving his son a gift and you're concerned because it's going to be inconvenient to do some admin? How ungrateful.

I'm glad your SIL wants to allow them to stay there.
Please do talk to your DH and get him to let his sister know what you are thinking. I hope she tells your FIL and that he amends his will to either give his friends the right to stay there, or even leave the house to them.

Cherrysoup · 19/06/2021 12:16

If sil wants to keep it, she will need to buy the 3 of you out if the will states it belongs to all 4 of you.

Original poster

earlydoors42 · 19/06/2021 12:19

He can leave the house to his friends if he wants to, probably simpler all round! It's fine by me. DH not bothered either. I'm glad you can see through my "shocking greed" though :-D

OP posts:

Tavannach · 19/06/2021 12:44

I don't think whether or not they have a tenancy agreement is pivotal. The fact that they've been paying rent proves they are tenants. When they moved in could be crucial though - the law changed in the late 90s and if they were in situ before that I think they might have more security which remains protected. But if your DIL wants them to remain and she can afford it then no problem - the obvious solution is for her to buy her siblings out when the time comes.

Tavannach · 19/06/2021 12:45

SIL

PegasusReturns · 19/06/2021 15:15

I think your DH and SIL should check and ask what he wants. If he wants his friends to keep living in the house then he should make arrangements because it’s clear you don’t want that to happen.

IronTeeth · 19/06/2021 19:26

@L0bstersLass

Shocking greed being displayed here. Money really does bring out the worst in people. You didn't know about the house until recently and now you want to evict your FIL's friends from their home? Your FIL is planning on leaving his son a gift and you're concerned because it's going to be inconvenient to do some admin? How ungrateful.

Oh for goodness sake, op is not wishing death on fil, or trying to be money grabbing, she's trying to work out what will happen to her family when fil dies.

The hand wringing that goes on here when someone just wants to get something straight in their head - she's not there administrating arsenic

Sweetchocolatecandy · 19/06/2021 20:56

Shouldn’t your husband be the one sorting this out with his sister? No disrespect but your FIL will be leaving his share to your husband and you’re only benefiting by default because you’re married to him. Your husband, his sister and the two step sisters (ie the benefactors) should be sorting this between themselves, I’m not sure why you’re trying to meddle?

IronTeeth · 19/06/2021 21:32

@Sweetchocolatecandy

OP has explained that s/he does the admin, so even if it is DH that should be sorting out, s/he wants to be prepared.

Sweetchocolatecandy · 19/06/2021 21:58

@IronTeeth there’s admin and then there’s deciding for someone how their inheritance should be spent. If my FIL died and left my husband a share of his house there is no way I would be telling him how the money should be spent as it wouldn’t be my money. Similarly, if I was gifted an inheritance I wouldn’t expect my husband to be telling me how I should spend it either. It just seems very controlling and interfering on the OP’s part.

HelloDulling · 19/06/2021 22:09

Seems unlikely the two step sibs will both be happy to just leave the tenants there. Perhaps your SIL will buy you all out.

JayAlfredPrufrock · 19/06/2021 22:12

I think its best to wait …

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