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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

what on earth to do with inheritence?

551 replies

marymaryquitecontraryusedtobeafairy · 30/07/2023 11:02

I've been left a house which to sell now would bring me about 80K in the bank.

I'm poor. I bring in about 24K/year, and am in masses of debt. I just survive. I'm a mum and I work and get benefit top ups. I'm council housed in a dire part of the country, the house is in a slightly better area but I don't wish to uproot myself and children from school and home.

What do I do? Can this help me get out of the poverty trap? Do I live off the money? Live in the house and enjoy a secure home but remain in poverty? I can't afford to do the house up but can I possibly buy a very cheap or auction place, do that up and start flipping houses as my main income?

Look I'm not that bright but I've worked hard all my life and it's just not good enough financially. I decided to be a care worker because I enjoy it but the pay alongside the increase in prices has crippled me and there's no way to get out of it so I just trudge on day by day. I'm not miserable nor are my children but I don't want to waste this opportunity.

I don't have money for a financial advisor right now nor time to research so I'm hoping you clever and wealthy lot can help me out a bit with pointing me in the right direction.

Thank you.

OP posts:
Thread gallery
8
MojoDaysxx · 31/07/2023 20:20

Clear you debts and then put the money in a couple of savings accounts. Take your time to think about what you'd like to do.
An old saying. "Save it youv'e got it, spent it you've had it". Take you time to consider what you really want.

Morgysmum · 31/07/2023 20:23

I would, move into the house, use what money you save from not paying rent to go towards the debts. Step change is a fantastic charity, that can help with your debts, it's free so all your money goes to your debts. You do a budget and leave enough for you to live on. It might be a move for your kids, but they are resilient. Having a house is great, as once your debts are paid off, the money you save in not paying rent, will mean you would be able, to take the kids away on holiday or put some money into savings for them, when they get older.

Batalax · 31/07/2023 20:26

Check how much you need to spend to buy your council house by ringing them asap.

Sell the house. Clear your 10 k debt so you have no debt when you apply for a small mortgage.
Take a tiny mortgage out on your current house if you need to., but you might not need to with the council discount.

Send dc to school with a packed lunch like many people do - both home owners and renters.
You should be able to live rent free/with a tiny mortgage on £24k possibly with top up benefits but with no debt.

First things first, find out how much you need to buy your council house,

insg · 31/07/2023 20:29

@marymaryquitecontraryusedtobeafairy Just seen your debts are 20k. Don’t all the house for that!! You’e unlikely to have the deposit to buy it again. Borrow against the house towards the debt but don’t sell the asset. If you don’t own the home you’re currently in then move into the mortgage free place and I think you can still claim benefits too.

Cosyblankets · 31/07/2023 20:37

Batalax · 31/07/2023 20:26

Check how much you need to spend to buy your council house by ringing them asap.

Sell the house. Clear your 10 k debt so you have no debt when you apply for a small mortgage.
Take a tiny mortgage out on your current house if you need to., but you might not need to with the council discount.

Send dc to school with a packed lunch like many people do - both home owners and renters.
You should be able to live rent free/with a tiny mortgage on £24k possibly with top up benefits but with no debt.

First things first, find out how much you need to buy your council house,

What top up benefits will they be?

greenbeansnspinach · 31/07/2023 20:39

dreamingofsun · 31/07/2023 18:42

not sure what planet some of you r living on. Doing 'basic decoration before you let a property'????? So you wont be getting your electric and gas checked and certified? You wont be getting a heat/insulation certificate?

Or 'have lodgers and if your kids are young enough get them to share a room'. No way would i want strangers in my house if I had kids, especially young one.

Have some of you thought through your suggestions before giving them?

Agree with this. The costs involved in renting out a property, and the tax to be paid on the rental income, are driving many small landlords to sell their properties and get out.
in terms of disastrous expenses, there are far worse things than boilers. New roof needed. Rotten window frames. Dry rot. Are just a few examples which would cost many times the price of a boiler.
I do think the the OP should make an appointment with the CAB rather than discussing her situation here. With the best will in the world, we haven’t got the full detail of her situation and she could easily take advice that would leave her in a worse situation than she already is.

WhippyLongStocking · 31/07/2023 20:39

It’s not easy being a landlord.

Perhaps use the money as a cushion to get trained. Perhaps look at access to nursing and nurse training? Or social work as PP suggested?

Newnamefor23 · 31/07/2023 20:52

Lots of possibilities but first pay off any debts that are costing you money/causing you potential future credit problems.

Then....... depending on how much is left, how much you earn, how much you get from UC etc.

Look into securing your future.

Deposit on a house? For many rent is more than a mortgage would be. Is this a possibility?

Good luck with this.

caringcarer · 31/07/2023 21:01

Azandme · 30/07/2023 11:15

I'd move. The security of a permanent home, rent free, cannot be underestimated, particularly when you have children. Plus you have the asset, so you have something with value should you ever need it.

You will always need a home. Why pay years of rent for something you will never own, when you can own one without paying anything for it.

Use your rent money to pay off your debts.

This. It would be a huge relief for you not having to pay rent, and great security for your children too. Carers are needed everywhere so you could walk into another job if the house is not near to you. Is it in a nicer area than you are in now.

Lollipop81 · 31/07/2023 21:05

Sell it pay your debts and possibly buy the council house you live in 🤷‍♀️

caringcarer · 31/07/2023 21:06

gingergiraffe · 30/07/2023 12:00

Sorry but I am confused. A house worth 80k? Where in the country can you buy a house for £80? Where I live, 80k is just a really good deposit.

My DS bought a 2 bedroom two up 2 down 18 months ago for £75 in Hull. It's actually really nice if it was where I live it would cost £175k.

LaDeeDa123 · 31/07/2023 21:08

Some of these suggestions are madness.
Financially the best option is to move into the house. If you don’t you will never own your own home and will always have to pay rent to a landlord.
Personally this is what I would do, move into the house and get whatever free stuff and help I could to make the house as lovely as I could to bring my dc up in. You will always have the security of a roof over your head, which is a huge advantage. Next, get some help from a debt advisor and work out a deal where you pay the lowest possible amount back per month. If you don’t have the additional financial burden of monthly rent, this puts you in a good position. Get a job. If you have carer experience it should be quite easy to get work in this field. This should easily cover all your other expenses.

caringcarer · 31/07/2023 21:09

marymaryquitecontraryusedtobeafairy · 30/07/2023 12:19

@Riverlee Thank you. I could use about 20K to become debt-free then live on the rest until I have to claim benefits again.

But I want to get out of the poverty trap. I'm going to seek a different type of job work when my last kid moves up a year where there's more free childcare at school via groups.

But I doubt I can move up in anything at my age with a lack of experience.

Do t throw away your opportunity to own your own home and all the security that brings for you and for children. Live in the house. Children quickly adapt to a new home and make new friends. You will be mortgage free, something many people can only dream of. You could get another job.

caringcarer · 31/07/2023 21:12

DonkeysForCourses · 30/07/2023 12:30

Surely benefits aren't meant for people sitting on £800k. You may lose them buy that's tough I'm afraid.

I'd buy a small house, pay off debts and invest the rest.

£80k not £800k.

Blondeshavemorefun · 31/07/2023 21:14

I've asked several times

How old are kids

How far away is property from wheee op is now

She said kids would have to change school. That happens

But would she have to change work

If she need friends and family

Eventually uc won't pay rent costs as she will have to work more as kids get older /adults

Then owning own house will be a big plus as no rent /mortgage to pay

EatingPeanutButterWithASpoon · 31/07/2023 21:24

What about training as a nurse with your experience? Or working as an assistant to any allied health professionals e.g. physio/speech and language/dietetic/occupational therapy assistant usually Mon-Fri. Then you could possibly retrain once you know what you enjoy. (Band 3-4 on agenda for change) plus you could do bank shifts as a health care assistant for extra income.

Not sure if this has been mentioned but if you rent the house out are you likely to have to pay capital gains tax on it when you go to sell? I know it would be the only property you own but if its rented then that could be the case so worth checking. Also its not a landlords market anymore. If you get bad tenants who trash the place, dont pay rent, say you need a new boiler you have to sort it and hard to get rid of bad tenants. Plus lots of checks to set up so you might have to pay estage agent fees to at least set it up.

Sounds like you want to stay where you are. I'd look into selling, paying off your debts, seeing if you can buy your current house and what jobs you're interested in. Gov have a free careers advice centre where you can have free advice plus help with cvs etc. Good luck!

Yourcatisnotsorry · 31/07/2023 21:26

If you don’t want to move, rent out the property? Private rent will bring in more than your council rent so you’ll get a little extra income every month to repay the debt and can always move into the house at a later date/when kids have moved.

Maiden2021 · 31/07/2023 21:41

caringcarer · 31/07/2023 21:12

£80k not £800k.

Show quote history

Sorry, just seeing the post by @DonkeysForCourses. The tough love me laugh, thank you.

Somanyllamas · 31/07/2023 22:05

I haven’t read through all the suggestions but your work allowance increases if you don’t pay rent, so you’ll receive slightly more Universal Credit if you move into the house or buy your council property.

Also, if your interest has been frozen and you’re on a repayment plan does that mean that you have poor credit? This could stop you getting a mortgage or cause you to pay ridiculously high interest rates if so.

Somanyllamas · 31/07/2023 22:10

Somanyllamas · 31/07/2023 22:05

I haven’t read through all the suggestions but your work allowance increases if you don’t pay rent, so you’ll receive slightly more Universal Credit if you move into the house or buy your council property.

Also, if your interest has been frozen and you’re on a repayment plan does that mean that you have poor credit? This could stop you getting a mortgage or cause you to pay ridiculously high interest rates if so.

I just checked the current taper rates and you’d receive an extra £138.60 a month

benfoldsfivefan · 31/07/2023 22:12

If you don’t you will never own your own home and will always have to pay rent to a landlord.

I take your point, but she's not paying rent now as she's on UC and won't don't do again if she stays in her current house until her children become adults, so she won't be financially better off by moving into the inherited house.

LaDeeDa123 · 31/07/2023 22:21

@benfoldsfivefan she wants to escape the poverty trap. How does staying in UC achieve that?

ThereIbledit · 31/07/2023 22:23

There are places to get free advice. Barclays does general advice to anybody (you don't need to be a customer), so does HSBC IIRC, and Citizen's advice, and debt charities will too. I'd get as much free advice as you can before making a decision.

Blondeshavemorefun · 31/07/2023 22:33

Yourcatisnotsorry · 31/07/2023 21:26

If you don’t want to move, rent out the property? Private rent will bring in more than your council rent so you’ll get a little extra income every month to repay the debt and can always move into the house at a later date/when kids have moved.

I don't think is allowed a council house if owns a property and rents it out

Blondeshavemorefun · 31/07/2023 22:34

Somanyllamas · 31/07/2023 22:05

I haven’t read through all the suggestions but your work allowance increases if you don’t pay rent, so you’ll receive slightly more Universal Credit if you move into the house or buy your council property.

Also, if your interest has been frozen and you’re on a repayment plan does that mean that you have poor credit? This could stop you getting a mortgage or cause you to pay ridiculously high interest rates if so.

That's what I said @Somanyllamas

So Op will be better off each month