what on earth to do with inheritence?

[marymaryquitecontraryusedtobeafairy]

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.

I'd also forgotten right to buy. However if the property is a flat you'd need to be careful - councils have requested large sums of money from flat owners when any work needs doing on the property, you'd need a surveyors report to check on what bills might be coming up soon.

I agree, pay of your debts first.

Replace anything that needs replacing in the house, and buy anything you and your kids need.

I don’t know much about benefits, but you may find these are affected.

Treat your kids to a few nice days out this holiday. Eg, trips to the zoo.

Sell the inherited house, clear debts and buy your council house via rtb? How much discount will you have?

I'd move into the house. The improvement in life from not having to worry about rent, a better area and the knowledge that the house was owned outright would outweigh the changes.

The last thing I'd do would be to risk everything by trying to dabble in buying and selling houses.

Move to the house.

Security is the most important thing you can have. Your kids will settle in a new place, and you have given them a home forever. Once you are rent-free (a gift), you can start repaying your debts in a manageable way. Your council house will go to another family who need it.

Don't sell it if you receive UC top ups, the limit for capital is £6K.

I don't know the circs in which you inherited, and I don't want to be insensitive in saying you are lucky, but this is a terrific bit of good fortune for you.

Don’t sell immediately.

Rent it out and use the income it generates to pay off your debts.

Once the debt has gone switch the income to building up a pot to do it up.

Re assess when it’s done. It’s not a sellers market right now and just a few small improvements will make a big difference to its value. You will be in a much better position once you are debt free so maybe you won’t even need to sell it.

Clear your debts, then firstly put the remaining money in an ISA, don't just spend it.

Yes it would be nice to buy things or have a few nice holidays but this has given you a possibly once in a lifetime chance to get out of the poverty trap for good.

Aim to double your income by retraining, that would change your and your children's lives for the long term.

Think carefully for a few weeks about what you want and need to do to get a fulfilling but better paid career. Look at end salaries/commutes/courses/lifestyle...really think carefully but shake off the ' l cannot possibly do this/that...you actually can.

So many people when they come into a lump sum just spend it and end up in the same poverty trap after a few year ...don't be one of them..

Flipping properties is very risky and the Capital gains wipes a lot of the profit.

A secure enjoyable career is your best bet.

You could afford to full time retrain for 1/2 years, then jump up the career ladder.

THEN think aboutwhether you want to move house.

As other PP said educate yourself about money, ensure you clear all debts, set up a budget and stick to it whilst you work on your long term future.

Look at the interest rates you are paying on your debt . Don’t put your head in the sand write it all down . Either way whether you save rent or pay out of the inheritance that must come first .

like other posters said more info needed .

How old are the children, how big is the house and how many spare rooms?

How much is the debt?

You can have lodgers and it doesn't impact universal credit - it does impact the council tax.

You could ve a shared lives carer in your own home if you have a spare room. It would mean that you have a home and a career for when the children are older. And you do a job you love from

The council often have a scheme for loans for essential home improvements.

Def look on money saving expert.

If you sell and have the money, you'll have to.live off it until its gone and then claim benefit top ups when it's almost gone.

Don't waste the opportunity to have a home - hard work to keep it now will pay off in the long term future.

It's very difficult to give good advice without knowing more details like size of debt

If you do that make sure it’s a managed rent and everything is above board safety wise with the house . Being a landlord is not an easy option .

Can you go to StepChange or Citizens Advice? They will give you free financial advice. Especially a debt charity like StepChange.

Like other have said, sell the house and clear the debts.

You say you love your job and you're happy(ish) where you are. Could you put the left over in a bank account and transfer the same amount you you get from UC across to your main account every month to cover that shortfall as I believe UC stops if you have more than £16k in savings?

That way you're basically continuing your current lifestyle debt free which should hopefully free up some of the money you've got coming in as you'll no longer be paying toward the debt so you can enjoy your extra money?

Or you could just pay off debt and blow a chunk on a big holiday that you and the children will remember forever.

I think I'd probably go for moving into the house (assuming that it's structurally sound and there's no mortgage left on it). The thought of owning a property outright is a dream. The thought of not having to pay rent or mortgage is a dream. You could pay off debts by snowballing and soon accumulate savings.

With RTB, I think it has to be an actual council house (or you have to have been an actual council tenant). With HA properties/tenancies, it's RTA (right to acquire), and that has a much smaller discount.

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.

Pay off the debt. I would use a small amount for a treat like a holiday or some family days out.

'Being a landlord is not an easy option'.

No, and if the OP's life is already stressful, it's even worse!

Letting agent fees and the cost of maintaining a rented house will eat into the revenue, and the gains need to be declared for tax and UC. Unless the rental income is immense, and from the valuation of the house it doesn't sound that way, it's more hassle than it's worth.

Invest in you so you can earn more. And I speak with experience.

I was in a hole 10 years ago. Moving around homeless hostels in my early 20s. When I finally managed to release my inheritance from a property (I inherited it with a sibling who had refused to sell). It's wasn't as much as you will receive but I didn't have too much debt.

I used it to pay for private rent whilst I went back to college to gain an access to HE diploma and then a degree in a good vocational subject. The stable housing made a huge difference to my ability to study. I also learned to drive and paid for some private health treatment I needed.

It was hard work but I don't regret it. I now own my house (mortgage) have good stable and secure employment and options for career progression with improved earning.

If you enjoy care, maybe considering nursing might be an option. You could do OU whilst working or apprenticeship if traditional university doesn't feel like you.

PM if you want.

@marymaryquitecontraryusedtobeafairy it really depends how much your debts are.

if they are under £20k and you are managing repayments, the house is in a better area and you could move your dcs to schools in that area or commute back for school, then id say keep the house and live in it, mortgage or rent free.

i wouldn’t get into flipping houses, you could come unstuck quickly.

In some parts of the North and Midlands you can still buy a house for £80 000.

Not enough information there to advice tbh. How much debt do you have? How far is the inherited house from yours? How old are the kids? CAn you move to the inherited house and are the kids old enough to use bus/ train to see their friend where you live now?
Is the inherited property in good order? If yes, then I would rent. It will give you steady income.

I’d live in the house ,it would be security ,
I don’t think they can stop your benefits for living in it ,as you won’t have any more money each month..or maybe they would as you wouldn’t be paying rent

This is my gut feeling too. Secure housing with no rent is an absolute life changer. I know you could pay off debts from the sale, but I think the rest would probably mess up your benefit entitlement and you would end up running the money down before going back onto benefits. I understand the suggestion that you should retrain, but it’s an absolute disgrace that someone doing important work like caring can’t afford a reasonable standard of living.

Bought mine for 77,500 2 years ago... We call it 'the north' lol

The best thing is for the op is to retrain and get off the UC, minimum wage and council house safety net she's been in all her life. That's all she knows and is scared of changing her situation to a more comfortable one.

I'd move into the mortgage free home because you'll be saving money in the long run. If you sell, you'll have to spend the money quickly in order to still qualify UC. You'll be in the same position forever then so think carefully how you can change it.