Active discussions

Meet the Other Phone. Flexible and made to last.

Meet the Other Phone.
Flexible and made to last.

Buy now

Please or to access all these features

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

In thinking this is a win win situation? Am I missing something?

226 replies

Arghhhhhhhelpjobinterview · 13/01/2018 23:07

I am not financially savvy nor is my aunt.

Due to funny family ages I have an aunt who is only year older than me. Not really relevant..

I have inherited a small flat, which needs new bathroom and kitchen and general over haul. Ie new plaster etc. However it's got new heating boiler, very warm, good windows Grin

It's too much for me to do up, and it's far to far away, that's not an option at all for.
.me.

My aunt has very tight finances and is desperate for some where to live. She has thought about buying my flat outright which would leave her with no budget to do up the flat.. She would have to get loan off her df or he pays out right for bits and pieces. But she would own flat (long lease).

Or.. I have offered if she pays for the bathroom to be done, she lives there rent free for cost of bathroom plus extra months as a thank you... And so on. Meaning she keeps bulk of capital, to invest... She gets my flat to live in...

And we get something in place legally to say... For every x she invests.. She gets x amount of months rent free. I also get something to protect me.

She gets sanctuary, plus her capital.. I get my flat looked after, council tax and bills paid and slowly done up.. By her but also me.
Looking at this as a ten year project?

Any spokes I'm missing?

OP posts:
InspMorse · 14/01/2018 10:34

In fact, YOU should run away from this deal screaming!!

Sugarpiehoneyeye · 14/01/2018 10:35

Your best bet, would be to sell the property outright, for sure.

TattyCat · 14/01/2018 10:36

I have experience of getting involved in property with close family members. It's not a good idea, it really isn't, however you think you'll cover everything off.

In your position, I would sell it to her if she wants it, and knock off the cost of replacement kitchen/bathroom plus a small amount because she's family. To do anything else is a potential minefield because you don't know what's around the corner.

If you sell and she buys at a reduced price, that's a win-win.

CaptainMarvelDanvers · 14/01/2018 10:37

@InspMorse

The OP offered the Aunt this idea, not the other way round. At least that’s how I’ve read it.

At the moment the OP can do zilch with the flat as it’s unhabitable. So she wants her Aunt to invest in her property and then when she’s finished making renovations she then needs to start paying rent.

This would be a bad deal on the Aunts behalf because at the end of the day, when the property is done up there is nothing stopping OP from selling it.

Original poster
Arghhhhhhhelpjobinterview · 14/01/2018 10:44

Yy Simon, it's a gift to me that she wants it! It could stay in sold and I'm paying out bills and council tax.

OP posts:
Original poster
Arghhhhhhhelpjobinterview · 14/01/2018 10:45

Apart from legal agreement and moral integrity! The legal side would be more if something happened to me, aunt would be safe in our agreement

OP posts:
Original poster
Arghhhhhhhelpjobinterview · 14/01/2018 10:47

Yes will consider selling less than current offer it's just it wash valued at say 44 though to 40 though so offered to her at 40 thou.
Another agent was far away more optimistic saying 50 to 60. So I do feel its current price is lowest of low however I would consider maybe 37 though so she can do bathroom.

OP posts:
19lottie82 · 14/01/2018 10:49

Would you be willing to evict your aunt if need be? TBH the whole situation sounds too messy, with the potential for a fall out.

If you really can’t get a loan to do it up to sell then I’d just sell it as is at auction and get what you can for it .

SimonBridges · 14/01/2018 10:53

Sell it at auction and get what you can.
That way you have got a lump sum that you can invest.

TattyCat · 14/01/2018 10:54

Another thing you need to consider is the possibility of your aunt meeting someone and them also living there and how you'd feel about helping out someone you potentially 'don't like'. Could happen.

And asking your aunt to leave a percentage in her will to your children is just naive - things can and do change. People can and do change. Priorities change. If you don't sell it, you're possibly heading straight into a mess at some point in the future. You can still help your aunt by reducing the price - you both win then.

TattyCat · 14/01/2018 10:56

You also need to be asking why her DF has withdrawn his support for this arrangement. It could be that he also feels it's a recipe for disaster and by withdrawing hopes it won't happen. Although, you've said she can afford to buy it outright, so not sure why his support is needed?

InspMorse · 14/01/2018 10:59

Captain - At the moment the OP can do zilch with the flat as it’s unhabitable.

She can sell it. She doesn't need to do it up first.

PissedOffNeighbour · 14/01/2018 11:07

Crikey renting out at £350 per month (IIRC) when it’s valued at c£40k would be an amazing yield - are you sure that’s achievable?

In you position I would sell it - either to your aunt at a small discount or at auction.

Puzzledandpissedoff · 14/01/2018 11:11

she will make flat two bedroom so she can rent room out to help her with everything

If she's your tenant, why would you allow her to sublet at all - especially to someone else who might or might not be prepared to vacate the place if necessary? Hmm

You've not answered the point about how you'd handle this from afar, and I simply don't understand why, if your own financial position is vulnerable, you'd get involved in this at all - especially as there now seems an uncaring DP involved on her side. Why do you see it as your job to help her out of this at all, for that matter, instead of leaving her to sort her own situation out?

Just sell the place to her if she wants it - at a bargain price if necessary, since it would probably be more than you'd get from a developer - then stop worrying so much about her "investments" and think more of your own

Vickybroxbourne · 14/01/2018 11:14

Sorry OP, this is not a win-win situation.
Why does your aunt want this particular flat, if not because she thinks she is getting a bargain at your expense?

Personally, I would take out a loan (or get DH to, if thats cheaper), or use credit cards to do some very basic work on the flat to make it mortgagable. Then you can try and sell it the usual way at market price via an estate agent.

If this sounds like too much work or too much risk for you then I would sell it at auction as it is.

Please don’t involve your aunt at all, even as a straightforward tennant. It sounds like you are too nice and would not have the mentality to evict her if she stopped paying rent.

Original poster
Arghhhhhhhelpjobinterview · 14/01/2018 11:19

That was rate once it's done up. Eg 350. When everything done.

OP posts:
Original poster
Arghhhhhhhelpjobinterview · 14/01/2018 11:21

It's and assets I would want to work after ten years.. In mean time it's a bonus.

So many brilliant points I'm just reading and bouncing to and fro at the moment. Then I will go through and pick out point tomorrow raise with her. I feel much clearer now.

OP posts:
Puzzledandpissedoff · 14/01/2018 11:25

I will go through and pick out point tomorrow raise with her

If, as you say, you don't have any expertise in this area, can I suggest you take legal advice before discussing anything further with her at all?

So far the whole thing seems to have been handled on a very casual basis and without any real idea of the implications ... and that's just not the basis for working things out in a way which will "stick", should anything go wrong

Knittedfairies · 14/01/2018 11:26

It would be far less stressful for everyone if you sold the flat as it is, but not to your aunt, so you get as near to the market value as possible. If you then want to help out your aunt financially, with a proper legal agreement, then you could. I'm thinking that no legal advice to get you through your current plan would be watertight; there are too many pitfalls. How could you, as her landlady, rent out a property that was obviously uninhabitable? You'd fall foul of many, many regulations designed to protect tenants - I’m not sure that, even if your aunt took on the property as I’d - that you'd get away with it.
Time to stop trying to be nice to your aunt, even with the best of intentions, and screw on your business head OP!

PissedOffNeighbour · 14/01/2018 11:27

I own a rental property jointly with my sister which we inherited when our parents died. It’s also quite far away from me but nearer to my sister.

We have a letting agent who manages it but there are quite a lot of ongoing expenses to be deducted e.g. landlords insurance, gas safe certificates and ongoing maintenance work - in the last year we have had to have a new fence, there has been a leak in the bathroom and a problem with the gutter. Unlesss you have money for all of these ongoing costs I would steer very clear and sell up.

SimonBridges · 14/01/2018 11:30

Personally I think you should either sell to her or sell at auction. That way it stops being your problem.

If you had it all done up and available to rent on the open market, would there even be a call for it? If you can buy a flat for £40k in that state I can’t imagine that done up would be much over £60k. If property to buy is that cheap is there a call for rental?
Being a landlord might not be the best long term money maker, especially if you live so far away.

WitchIwasaWitch18 · 14/01/2018 12:02

Sell it. Your Aunt has £50,000. She doesn't need you to bail her out. She also has family back up and you described some of these as not so nice.

Even if it went to Auction and after costs deducted you will probably have in excess of £30,000 in YOUR bank account, a sum of money which will give you a huge feeling of security even if you did nothing more with than stick it into premium bonds in your dc names. It's not a life changing sum but it's YOURS and it was meant for YOU and that feeling of security is a wonderful one.

TattyCat · 14/01/2018 12:36

Sell it. Your Aunt has £50,000. She doesn't need you to bail her out.

I'm also wondering why you feel responsible for your aunt's situation, when at face value, she appears well off enough to outright purchase somewhere. As someone further up said, get your business head on! You say that you're not in a brilliant financial position right now... but you could be!

Please listen when people tell you that once money comes into things, people can change. Maybe not now, but some time in the future.

Gemini69 · 14/01/2018 12:43

I seriously don't trust your Aunt or her Dad.. cutting the flat up into two etc.. rent free my arse...

don't let her move in lovely Flowers

SimonBridges · 14/01/2018 12:55

I don’t think the Aunt has £50k in cash. As I understand it this would come from her selling her current property and then buying the flat outright.
This means that the aunt gets to live mortgage and rent free. What does the op get out of the deal other than not having to pay council tax on an empty property.

Swipe left for the next trending thread