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.

Nursing might only be practical if you have excellent family support for childcare.

Honestly I’d move if the house is suitable. Take out a small mortgage of 20k use that to clear your debts. I assume they are costing you a fortune to maintain. My plan b would be to look at shared ownership housing. Sell the flat, pay your debts and spend 60k buying a proportion of a house. You can still claim UC for the rent portion.

I'm not 100% sure, but they might be able to open a company and buy the investment property on that's name.

Sorry OP but your situation is too complicated to take advice from strangers on the internet. Especially Mumsnet. People spout a lot of rubbish on here and doing the wrong thing could result in you losing your benefits or completely wasting your money.

These are some places offering free financial advice:
https://moneytothemasses.com/quick-savings/tips/where-to-get-free-financial-advice

You're going to sell a house - that will bring in 80K , after 20K cleared that leaves 60K. You can't claim that it's not enough for financial advice. Book a free consultation, explain your situation you might not have to pay for advice until you've sold and receive the money.

Don't be penny wise, pound foolish.

Those suggesting op rent out the house- surely the council don't allow people to stay in council housing when they have a property to rent out to others??

You need proper legal financial advice. Go to Martin Smith's website as above or to the CAB. Also the Money Advice Centre may help. Do nothing until you know what your options are, but remember, rent is dead money so it would be worthwhile considering living in the property if that is a feasible option. Being a landlord is the last thing you should consider. It will give you nothing but problems and is not worth it IMHO.

Also OP finances are complicated. There is no magic way around it I'm afraid you either pay for professionals or research - and even the former you need to keep an eye on them.

If it was easy everybody would be rolling in it, eh?

Agreed - can't believe so many people suggesting daft things. Put it in trust for the kids- this could lead to op being investigated for deprivation of capital, put it in an ISA - she would lose all benefits with savings over 16k. Op needs proper sensible advice on her options.

Don't think I've seen this mentioned OP but to sell the house you will incur legal fees and estate agent fees - you need to take this into consideration

Perhaps a list of pros and cons will help you out

What part of the country do you live?

I get less than you including benefit top ups and so I’m wondering if you live in a really expensive part of the country.

My friend is a carer and earns about £700 a week!
I think it’s because she stays overnight. Is this something you can do?

Honestly, if I were in your shoes I would go to a debt management company like stepchange because else you will never get on top of it.
My sister did it and it was the best thing she ever did.

They basically pay all of your debts off and you just pay them an amount you can afford each month.
All of the debt letters stop and it works wonders for your MH.

I can imagine that most of your income goes to paying off these debts and it’s probably not even touching the sides.
If these were gone I can imagine you’d have lots more money.

So I would sort your debt out but not with the inheritance.

I would also not move out of your home but eventually look into doing a home swap to a cheaper part of the country.

I would also look at what jobs you can do in the area you have experience in.
Just go on to indeed and see what jobs are available and what other qualifications or experience you may need to get there and work towards it.

I would put money away for your kids and for things like their first car etc and I’d 100% take them on a holiday.
This money is meant to be enjoyed.

If you need a new car or furniture then use this money for it.

I would also look into investing some of it somehow.
I will be getting £5k soon and I’m trying to think of what I can invest in that will make me more money in the long run, like starting up a side hussle.

Increase your income by having a lodger £7500 a year tax free.

The OP says the house is worth around 80K.

I don't know which area the house is in, but even in cheap UK property areas, I doubt it has more than three bedrooms and possibly only two. The OP needs a bedroom for herself. She has at least one child. If she has two or more children they may need separate bedrooms, especially if the second bedroom is very small. The family also needs a sitting room. Might be prudent to first establish how many spare rooms this 80K house has before suggesting moving in and then renting out one of the rooms to a lodger?

Ok I would speak to a mortgage advisor at your bank, explain the situation, let them know now much you are paying out for your debts each month. Would they lend you £20k as a mortgage on the house? If so, what would the monthly repayments be. If this is significantly less than you are paying for your debts now, then this is a better way to release the £20k for debt clearance than selling your house.

if this is the only way you realistically can ever own a property, don’t lose it.

I hate it that poorer people get trapped.

I do agree that you should get proper legal advice which msny companies give for free.

Remortgage it.
Rent it out at a level that will cover the mortgage payments, ie; free to you.
Take the remortgage money to pay off your debts and buy a new frock or holiday or whatever.

voila.

you cannot live for long off 80k so do not do that idea

xx

Are people missing the point that if op keeps the asset which is worth more than 16k she would likely lose all her benefits if on UC ?

and buy a new frock or holiday or whatever

Again, @marymaryquitecontraryusedtobeafairy , this is SHIT ADVICE. SOUND THE SHIT ADVICE KLAXON!

DO NOT DO THIS. Do not waste a penny of this money on clothes, treats, holidays. I mean it. There are some really thick people chipping in with this shit advice and it's THE WORST THING YOU COULD DO.

• sell the house
• use 20k to pay off debt
• use 600 per month to boost wage from remaining 60k ( would last 8 years)
• once below savings cap, reapply for benefits.

even though you’re losing benefits, you’d also ( presumably) have more than before with topping up from the 60k and having no debt to pay.

Remember that most people are not that intelligent, I'm begging you.

You can still get uc even as homeowner.

If you bank at Nationwide you can get financial advice - don't recall paying for it. Perhaps other banks offer a similar service.

It would depend on the house. Some house are money pits. Some just need a bit of love and care in way of painting and a bit of diy. It could actually be great. But depends on the house and the area. 24k with no rent is a lot of money.

How far away is the house from your current work place? If it didn't affect my ability to earn I would live in the house. Then you don't have to worry about the benefits aspect. If the house is structurally sound you can do it up slowly. Since you're not already a homeowner it's always worth it as the house will increase in value and give you future security. If you sell it and lose your benefits you'll be digging into your savings every month and it won't last as long as you think. If you change your mind later on you can always sell and as long as it's some way into the future it will have gone up in value, they always do in the long term.

Can a council tenant own a house that is being rented out and remain a council tenant?

I'm astonished at some of the suggestions being banded about in this thread.

There is nothing magical about an ISA other than the fact that you don't pay tax on the interest. It doesn't mean the money is not viewed as savings by benefits agencies in the same way that a non ISA savings account would be.

Thing is OP at the moment you're relying on your dc for income, in a few years which will come round sooner than you think all of that will stop. Then you'll have to find rent well into old age on what's still a low income.

Keep the house. It will bring security that the benefits system won't.

As others have said, if it is liveable I would move. You will be rent free and you could use this money to pay off your debts. Think of the future … yes you are secure in a rented , albeit council property but you will always have rent to pay.You might not always be entitled to housing benefit. I am now mortgage free and it is the most amazing feeling. This house is mine .. to be then passed onto my children .