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.

Could you live off the money while training to do something else, eg a nursing degree if you enjoy being a carer?

If you already care for people could you do an access to nursing course?

Should I go and live in the property you think?

Yes, yes, 1000 times yes! It’s lifelong secure rent free housing. Use your rent money to pay off your debts.

Its difficult to answer unless we now how much moving into the inherited property would cost you.
would not having to pay rent release money each month? or do you get all your rent paid?

Have a chat to your bank and council and see if they'd buy your inherited property off you and let you own the one you live in?

I've known that happen before now. Then you've got the stability of housing without uprooting your children.

As others have said being a LL is not a stress free easy option. You will need to comply with a raft of regulations and factor in bad tenants who will trash the place and pay no rent, requiring legal costs to remove them.

Try your local council. I'm serious. They often have entryish level admin jobs you can work up from e.g. in the planning department. Often they will support you to earn professional quals part time. Councils are completely desperate for planners. It's an interesting and potentially well paid career (you can move into private practice after a while in local gov.)

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.

Important, beware !

If the property is empty the council may charge you full council tax

You may need to investigate this with the council where this property is located

Can't believe people are saying move into the house / keep it and rent it out. OP is clearly living on the edge of her finances - what if the boiler breaks or the roof suddenly needs replacing? She simply doesn't have the money to be a good landlord or live in it without fear of financial disaster. For peace of mind, selling makes the most sense.

How possible is it for a 40 year old woman to get a decent job, even a career, with only care and admin experience?

You can enrol at your local college, take GCSE/ A levels or the equivalent to access higher education or an apprenticeship. Many courses are in the evenings. You can apply to your LEA for grant or a mature student loan/ career change grant.

You are 40 not 80.

What would you like to do for a job?

It is possible to get better paid job at 40. You still have good 25+ years of work. There are some better paid admin jobs than 24k as well. Civil service (though that is underpaid compared to private sector BUT provides good flexible working on most positions), admin posts even virtual, local schools and unies. Have a look what is in the area.

Yes, I would move to better area, that would free up some money monthly as well. How is the job situation in the house area? Plus, as you say, it's better area, why wouldn't you unless it's genuinely impossible.

I am a mover though. So far 5+ moves (and I don't count the ones within same city) . 🙈 Just going after something better, no point sitting in not nice place.

As your debts are so high have you looked into a Debt Management Plan before? It freezes interest and you pay a set monthly amount until the debt is cleared. You must be paying brutal amounts of interest.

At this point you would probably have to move into your house to qualify- ring Stepchange and see what they say.

What's your starting point OP?

Did you get any qualifications at school? GCSE English or maths?

It’s £80k, not £800k. With £20k of debt, and £24k pa salary.

Very different picture.

@towriteyoumustlive thank yo so much for the comprehensive answer.

Do mortgage lenders include benefits in your income?

When they stop the benefits that will mean I have to find another £600 a month so that would have to come from the 60K, but that would not last long and I'd be right back where I was.

I think how much debt you are in matters here.

£5k then you could sell it, buy a cheaper house and pay off the debt.

if its £35,000 then thats nearly HALF of the whole amount.

Be aware:
Anything more than £16k in your bank nullifies UC and you can't reclaim quickly if you are deemed to have 'squandered' it.

Example of approved uses by UC are things like buying property, buying a standard car if you need one or buying white goods for your home (washer, fridge/freezer,oven etc...).

Example of non approved uses by UC buying an expensive sports car, designer clothes/bag or a very expensive luxury holiday.

Property doesn't stop UC (although you will lose the house portion and be expected to move in) but money even from the sale of said house does.

Could you live in the inherited house and then you'd have the money you now pay in rent spare? Are you on tax credits or UC?

Do you enjoy care work? Could you look at starting as a maxillary nurse in an nhs hospital and train up as you work? Move into the house, the stability will be huge. Kids can adapt and it’s a better area so they have a better chance at a good teenage hood/adulthood.

Because otherwise, she'll spend 3 years without any entitlement to benefits and then have to claim all over again when the money's all gone, never ever having another chance to earn enough to put down a deposit or get a mortgage to buy a property. And then there's when the kids are adults - she'd still be dependent upon social housing or forced into a bedsit/shared accommodation, depending upon what happens in terms of government policy over the coming years.

Boilers breaking or a roof needing repair would be a pain - but she'd still have an income and even access to lower interest rates due to being a property owner.

I would want DCs to go to best school possible.
But I would speak to CAB about what you lose from benefits. Before deciding.

Nursing is the obvious way forward. It's not mega bucks but it's a lot better paid than care work and has far more benefits. On a nurse's salary in council housing you should be fairly secure for the long term - if you can get through the training. What were you like at exams at school?

As a HCA you probably wouldn't get a better headline salary but might get better benefits, and a smoother path to nursing qualification if that's what you want.

@Azandme thing is though I don't have rent money, it comes from UC.

So I could move into the home but I would not have one iota of extra income, in fact I would have significantly less income.

I get that a home you own is great but it's also a potential money pit isn't it? Repairs, boilers, leaks? I'd have to take out all sorts of insurance policies. I might go under.... but then I pay no rent... I'm trying to understand the position I would be in but it's difficult.

If you can - contact a financial advisor. Although, it may be expensive, it may save you money in the long run. Can you put the house in a trust fund for your children etc. Can you give the house to your children?

You can get a property auction company to do a valuation of the property

You then set a minimum price for the property

The property only sells if it meets the minimum price or over

You receive the money, minus fees
You pay off your debts

Or you can sell via a normal estate agents & they will charge their fees