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Original poster

Potentially life changing inheritance - wwyd?

259 replies

NotThatWise · 13/03/2025 17:19

First time poster, apologies if I missed info or added too much detail.

I have recently inherited my childhood home, owned for 40 years, we are the only people to have ever owned it. House is mortgage free.

I’ll try and layout the facts, and I’m interested to know what other people would do in this situation. What would your future look like?

Childhood home value £350k
My home value £325k, £100k left on mortgage
Both houses are the same size in the same town.
DH (47) and I (43) plus 2 children (8 &12).

OP posts:
coxesorangepippin · 13/03/2025 17:19

Either move into inheritance home, or sell yours

Stripeyanddotty · 13/03/2025 17:22

Sell one of them ?

Mulledjuice · 13/03/2025 17:29

Yes i would sell one or the other. It's a lot of capital to keep tied up in a rental compared with the value of your residential property.

Would you want a bigger house just now?

What sort of state are your pensions and savings in?

ghostbusters · 13/03/2025 17:30

Is the inherited house in good condition, or would it need upgrading?
If you moved into the inherited house, would they involve the kids changing school, or change the options for secondary schools?

We moved around a lot when I was a child so I don't have a childhood home so I don't feel that attached to houses. My kids have only lived in 1 house so they might feel different when they inherit this house from us. If your current house feels like your home and you'd be happy for it to be your kids' childhood home, then sell the inherited house and pay off your mortgage. That's what I would do.

FirFoxSake · 13/03/2025 17:32

Which is the nicest house?

Would your husband feel like your childhood home was equally his?

CreationNat1on · 13/03/2025 17:33

I wouldn't sell either, you have 2 children and 2 homes. Hang onto to them, so your children will get inheritance in time to come.

100k is not a big mortgage. Would you rent one out for a few years?

You ll never buy either one back if you sell now.

ParrotParty · 13/03/2025 17:34

Are you doing OK with the mortgage? If so I would probably see which is everyone's favourite, live in that and rent out the other for additional income, then when the DC are at a stage to be buying houses sell the rental one and give them half each.

richardosmanstrousers · 13/03/2025 17:35

CreationNat1on · 13/03/2025 17:33

I wouldn't sell either, you have 2 children and 2 homes. Hang onto to them, so your children will get inheritance in time to come.

100k is not a big mortgage. Would you rent one out for a few years?

You ll never buy either one back if you sell now.

I would absolutely sell one and make my life easier before I decided to ‘skip’ my inheritance just to pass it to my DC.

SwedishEdith · 13/03/2025 17:36

Sell both and buy a better home than the one you have for £5-600,000 ish use the rest for holidays and pensions.

YesThatsATurdOnTheRug · 13/03/2025 17:37

Sell both and buy a bigger one if you need it, or

rent out one for an income, live in whichever you like best,
or

sell one and use the capital for home improvements/pay off the mortgage/debts

BreadInCaptivity · 13/03/2025 17:38

Does either house suit your needs? One better than the other?

For example the inherited home may need improvements or even an extension or vice versa.

You are in a good position to improve one house whilst living in the other and potentially adding a lot of value.

Or simply sell one, live mortgage free and invest the remaining money (especially into your pension).

Or if neither house meets your needs sell both and buy something that does.

It's impossible to know what to suggest without more information other than to say I'd think about both short and long term benefit and not be tempted to blow the lot on an overly big new house that won't meet your needs when the kids leave home.

Think about if your kids are likely to go to uni and if you want to support them (and to what extent). It's a good time to set aside a pot to do that or for house deposits of their own in the future.

wishiwasjoking · 13/03/2025 17:39

Wouldn't describe it as life changing, you'll be paying a shit ton of tax if you sell it.

I'd rent it out personally, especially with the state of the housing market atm.

mynameiscalypso · 13/03/2025 17:39

I wouldn't want to become a landlord at all so I'd definitely sell at least one. I might sell both and buy my 'dream' property if I wasn't already in it.

ThejoyofNC · 13/03/2025 17:40

I wouldn't sell either of I didn't need to, I'd rent one of them out. Especially as you've said this is life changing you want to maximise it.

BreadInCaptivity · 13/03/2025 17:40

BreadInCaptivity · 13/03/2025 17:38

Does either house suit your needs? One better than the other?

For example the inherited home may need improvements or even an extension or vice versa.

You are in a good position to improve one house whilst living in the other and potentially adding a lot of value.

Or simply sell one, live mortgage free and invest the remaining money (especially into your pension).

Or if neither house meets your needs sell both and buy something that does.

It's impossible to know what to suggest without more information other than to say I'd think about both short and long term benefit and not be tempted to blow the lot on an overly big new house that won't meet your needs when the kids leave home.

Think about if your kids are likely to go to uni and if you want to support them (and to what extent). It's a good time to set aside a pot to do that or for house deposits of their own in the future.

Just to explain the value of the houses you have quoted doesn't really explain if one may be more valuable to you due to opportunity for improvement/layout/plot size etc

hazelnutlatte · 13/03/2025 17:40

Are you happy in your current home or do you want to upsize? If happy to stay where you are, I'd sell the childhood home, pay off your mortgage, go on a few nice holidays and invest the rest for the kids future

BreadInCaptivity · 13/03/2025 17:42

wishiwasjoking · 13/03/2025 17:39

Wouldn't describe it as life changing, you'll be paying a shit ton of tax if you sell it.

I'd rent it out personally, especially with the state of the housing market atm.

The rental market is stagnant atm due to low returns.

You also have to factor in the time/hassle of being a landlord and the cost of ongoing maintenance (and the possibility it gets trashed).

It's not a small commitment.

ButterCrackers · 13/03/2025 17:42

Rent out one of the two houses. Keep the mortgage payment going.

anyolddinosaur · 13/03/2025 17:44

Would depend on what condition both houses were in, if moving would mean a change of school for the children and if so would it be a better school. Do both children have their own room and if not could either house be easily extended? Do you have an emotional attachment to your childhood home?

I'd probably look to sell one, enhance the other with some of the cash released and put 9k each into child ISAs for the children to help fund their future. They cant touch the cash until they are 18.

Renting one out is possible but there is a lot of paperwork to get right and as a new landlord you'd need help with that. Renting a property you've lived in is also more difficult that a buy to let as you'll think "we didnt have that problem" when things break, forgetting that everything is much older now.

yogibr · 13/03/2025 17:45

wishiwasjoking · 13/03/2025 17:39

Wouldn't describe it as life changing, you'll be paying a shit ton of tax if you sell it.

I'd rent it out personally, especially with the state of the housing market atm.

It’s all relative. This would absolutely be life changing for many

SwedishEdith · 13/03/2025 17:45

wishiwasjoking · 13/03/2025 17:39

Wouldn't describe it as life changing, you'll be paying a shit ton of tax if you sell it.

I'd rent it out personally, especially with the state of the housing market atm.

How will they be paying a "shit ton of tax" if they sell it?

user1492757084 · 13/03/2025 17:46

Seek financial advice as to how to create maximum family wealth. Should the house be in the name of your children?
Should you invest in a further house and rent out two homes, aiming for them to be paid off in time for your children to live in them?
You are young and should keep earning and saving from your careers.You will have paid off your mortgage by the time you retire.

MeAndMyCatCharlotte · 13/03/2025 17:47

When my parents were in a similar position years ago, their estate agent advised them to opt for the house with the best location (which was the inherited house; desirable location, big garden but needed a lot of TLC). It was an opinion that surprised us all at the time because the inherited house (bungalow) needed so much refurbishment. My parents took the agents advise and it was the right decision. Location, location, location... and the big garden and potential to extend.

When I inherited my parents house, I took their advise, paid off our mortgage and added an extension our current house. And had some nice holidays!

CarpetKnees · 13/03/2025 17:49

I'd sell the one you've inherited, unless there is something about it that makes it more appealing to you and your dh.

Moving (when it doesn't sound like much difference in the houses) seems a whole lot of emotional and physical energy, plus might (I don't know how big your 'town' is) create issues with schools, and activities the dc do, and Drs places etc.

Then it's worth looking at your financial situation as a whole.
If you manage your mortgage easily as it is, you might not necessarily choose to pay off the mortgage. What will happen then is you just get used to spending more each month and that lump sum dwindles. Whereas if you invest it, you will have options in 15 - 20 years time to
a) retire early
b) travel
c) help your dc with a deposit for their first homes
and so forth.
Or you might choose to now only work PT.

There are so many "it depends" involved.

But you can max out your pensions, you can have a special holiday, or replace a car or a kitchen, and still have a good sum to invest for the future.

Itisbetter · 13/03/2025 17:50

Sell both and start a new life in Australia (or wherever offers a good lifestyle for you)