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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

WWYD Money

31 replies

loverly · 30/10/2018 06:55

I have been told I will be getting an inheritance soon equal in value to the cost of a business that my sibling received. I don't know how much really it will be.

So asking (fairly lighthearted)...wwyd? I own a small flat with a mortgage, unmarried, living with my boyfriend...in the next few years we want to marry and have kids :)

The reason for the inheritance is that my dad and my great aunt died recently (dad was very unexpected). Please be nice - I know its lucky but obviously I would rather he was still here.

OP posts:
Turquoisetamborine · 30/10/2018 06:58

Sorry about your dad and Aunty. I’d pay it off your mortgage if I were you and build up lots of equity for when you want to move somewhere bigger. Keep some to one side for solicitors fees etc. If you have any other debts pay those off too.

ThroughThickAndThin01 · 30/10/2018 06:59

I would buy premium bonds with it for now. I think you can invest something like up to £30,000, the money is safe until you decided what to do with it and is easily accessible.

Do you know roughly how much it will be? £10,000 or £100,000 or have you really no idea?

Original poster
loverly · 30/10/2018 07:00

I think probably closer to 100 than 10 but I don't really know!

OP posts:
Thisreallyisafarce · 30/10/2018 07:04

Whose name is on the mortgage?

Soontobe60 · 30/10/2018 07:05

Pay off any debt plus mortgage, if possible buy something bigger that will suit once you have a child. Use £10k to do something completely extravagant, like cruise round the south China see (or whatever floats your boat), invest the rest in an investment ISA (if those still exist!)

Original poster
loverly · 30/10/2018 07:05

Mine, he is paying me rent.

OP posts:
rjay123 · 30/10/2018 07:07

Him paying you rent makes things complicated - he is effectively paying towards the mortgage therefore has a financial interest in the property if you were to ever split.

Thisreallyisafarce · 30/10/2018 07:07

If he is paying you rent with a proper tenancy agreement, pay it off your mortgage. If he is paying you rent that - whether or not this is the intention - is contributing to the mortgage, invest the inheritance or buy premium bonds until the long-term future of your relationship is decided.

Original poster
loverly · 30/10/2018 07:10

The agreement is that if we sell to buy a house together his contributions count as a stake. If we split he has agreed that it counts as rent and he will not pursue a stake in the house.

OP posts:
Original poster
loverly · 30/10/2018 07:11

Thank you for the ideas - I was drawing a blank tbh as I'm still slightly in shock I think.

OP posts:
Thisreallyisafarce · 30/10/2018 07:11

We agree all sorts of things when we're in love. Protect yourself.

Cuddlykitten123 · 30/10/2018 07:17

If it were me I'd keep a small ish amount accessible for cost of baby stuff if that's in the near future, and something nice like a lovely holiday. maybe 5-10k. Premium bonds is a good idea.
Then it pay off all credit cards etc and the rest off the mortgage, check if it's better as a lump sum to overpay the max per year

ThroughThickAndThin01 · 30/10/2018 07:18

Definitely protect yourself. I don’t think I’d pay the mortgage off, as interest rates are so low it is a cheap way of borrowing.

If I were you I’d speak to several financial advisers to get some ideas. And I definitely wouldn’t rush in to anything. It’s not often big inheritances come along and you may have to wait a long time until/if you get another.

NoSquirrels · 30/10/2018 07:19

How big is your mortgage on the flat?

Original poster
loverly · 30/10/2018 07:23

110,000

OP posts:
SushiMonster · 30/10/2018 07:24

Why does everyone always suggest premium bonds. They have a terrible EV.

www.moneysavingexpert.com/savings/premium-bonds/

Shoxfordian · 30/10/2018 07:24

Is that a written agreement? Speak to a financial adviser

FabulouslyGlamorousFerret · 30/10/2018 07:25

I'd buy a rental property that your partner has no involvement in - in the nicest possible way!

Then you could maybe add his name to your mortgage (as long as you haven't had it for years and years and have paid considerably more into it than him) - that's assuming this is an established lt relationship that you want to evolve

IdaDown · 30/10/2018 07:25

Agree with ThroughThick.

Independent financial advisor - iSA (ask them about Investment Trusts, cheap fees).

Whatever you decide, ring fence your money from boyfriend. You can ask the IFA about this.

Oliversmumsarmy · 30/10/2018 07:29

You can get £50,000 in Premium Bonds the rest I would spread across Isa’s and high interest accounts. £2000 spare in an accessible account for a just in case fund and would only pay down the mortgage if I saw a solicitor to ring fence that percentage of the money.

You never know what is going to happen in the future.

Whilst your bf is saying that he wouldn’t go after any equity if you split whilst he is all loved up and wouldn’t dream of harming you. He might not feel so generous in the future

Angrybird345 · 30/10/2018 07:29

Get a deed of tryst to protect the property, just in case things go south with boyfriend, and see a financial adviser.

user1471426142 · 30/10/2018 07:32

You do have to be slightly careful with your current set up. When I was living with my partner (who owned a flat) before we married I paid him money towards bills and then saved in my name. It meant that when we got married and then bought a house i added to the next deposit. However, if we had split up I wouldn’t have been contributing to equity. The inheritance then complicates things and I’d be tempted to do something outside of the mortgage in your case.

JingsMahBucket · 30/10/2018 07:49

I’m sorry and congratulations. What a dichotomy. Flowers

The first thing I’d do is set up an emergency fund with 9 – 12 months’ expenses in it. There are some turbulent times ahead, so I think it’s better to be safe than sorry. You could do this in the various vehicles mentioned above like ISA, etc but the point is to have money stashed just in case.

Depending on your interest rates I also wouldn’t necessarily pay of the mortgage either just yet. I tend to think of money in the following pots:

Long term savings - retirement, house fund etc.

Medium term savings - large emergency fund/fuck off fund, new car purchase, roof repair, once in a lifetime vacation, etc.

Short term savings - small emergency fund/buffer, quick weekend trip, birthday party blow out, new computer, etc

Paying off a nagging bill - credit cards, small loan, etc

Fun money - guiltless purchases, new bag, again new computer depending price, etc.

At least for me, that’s how I’d mentally allocate the money.

Juells · 30/10/2018 07:54

Whatever you do make sure it's not something that becomes communal property if you marry your current or any other DP, and subsequently divorce. It's no fun being a single mother, and very few marriages seem to survive :(

Juells · 30/10/2018 08:00

I'd echo what JingsMahBucket says about paying off debts as well. For years I had a large overdraft plus about £12,000 cc debt, and so much money went out every month in interest. By sheer good fortune a tax-free lump sum fell into my lap and it felt so ay-may-zing to get rid of those debts and start out with a clean slate again. I set a £500 limit on my cc and clear the balance every month unless paying for sudden emergencies. Being debt-free, if you've always had an albatross around your neck, is wonderful.