Simply don't know what to do.

[Cantgiveitaway]

4 years ago we inherited a house. It has been on the market for the entirety of that time. It is on sale for approx 25% of market value. Reasons below:

The property is non-standard construction and therefore unmortgagable (we have explored this extensively).

It has a sitting lifetime tenancy on a peppercorn rent. Tenant is in their 70s and in good health.

We cannot sell it due to the above.

For those unaware, lifetime tenants cannot be evicted and the rent is very tightly controlled. We have increased it to the maximum allowed every year for the 4 years we've owned it. It still doesn't constitute £1000 a year.

We do not have any more money to put in to the property. We've done the legal required stuff. We've explored legal avenues for eviction ABD offered to give (gift) the property to the sitting tenant.

We basically need someone to come along with enough money to keep the property legally for 20+ years before they can do anything with it.

The most recent gas and electricity safety checks and the EPC have shown significant work needed in the next 12 months to keep it legal. We can't do it. Our only option is to sell our home that we, move in to a much smaller property in a different area (moving children's schools and away from family) and renting ourselves.

We have 0 savings because of the house and cannot afford basic things for our own home.

I just don't know what to do.

WWYD? We literally cannot give it away - we offered it to the LA and to a social landlord and a landlord with an extensive portfolio in the area and all said no.

In 20years, when the tenant dies or moves in to care the land might be worth something (and therefore sellable) but we can't wait that long. We had absolutely no idea the property existed until we inherited it and I've no idea why we did.

Any out of the box thinking here from the hive mind?

Put it in at auction with no reserve?

This, but put a covenant on it so that in the future if sold subsequently for building land you get a cut.

Why didn't you just refuse the inheritance. I don't know why anybody would want to buy it in the circumstances you have described.

Is that a legitimate option? Genuine question - I've never heard of such a thing.

I think you need new legal advice
You can sell with a lifetime tenant

Yes, we CAN sell, legally, that's why it is on the market, but we can't sell, because no one will buy it.

We did once, it didn't sell. Maybe we should try again?

I didn't know that was an option! And neither did DH when he found out about it! I wish we'd known about that.

Can you refuse the inheritance?

After 4 years? Seriously? That would be amazing if we could.

Yes, you can decline in the same way if a gift is attempted you don’t have to accept. It’s too late now though

Unlikely given you’ve been managing it for that time.

You need proper legal advice I think, they’ll be able to support around the fact that you cannot afford the required repairs. You might get ideas here but people will need to see contracts to be able to really understand your choices. They’ll be able to look at the rental contracts and also the rules around the work that has been recommended that you complete in terms of whether it must be done or is recommended etc.

You’ve definitely got yourself an issue that is very complex. Hope you can sort it.

Where is the property located

South of England.

Did you approach some of the biggest charities. Ones that have the resource and will last a long time to see the benefit of the property in the future?

No, I haven't, worth consideration.

The issue is, the house is very small and on a small patch of land - only has a front garden a back yard with a brick outhouse in it and space for the bins. It's a post war pre-fab, single storey. So even when the tenant is gone, it isn't worth much as land. I'm not sure the years of upkeep would come in at less than the land is worth.

But worth exploring.

Or have it listed as POA. Then have the estate agent tell them it’s free to whoever wants to take it on?

Have you tried contacting environmental health? They may say they cannot help you but if there are safety concerns they may lend you the costs to make it safe and put a charge on the property. I only suggest this as I used to be a social worker and worked with a home owner who was a hoarder but they had unsafe electric supply and other things that needed repairing and EH came to this agreement with the owner to ensure the house was safe and habitable.

It's worth a try! Thanks

Yes that is what I would do. Keep putting it into auctions at a lower and lower price until it does sell.

Friends of ours have bought 2 properties of non standard construction at auction because they are cheap compared to standard construction. Yours obviously has the significant added problem of having a sitting tenant so an auction with a low guide price is probably your only chance of selling it.

try again at a ridi

Hey op this sounds more like a noose around your neck can you raffle it off? Or like others said auction it for whatever price you can get you shouldn’t have to give up your home to keep this going especially for tenants barely paying any money.

..at a ridiculous price! Surely if it was £30k or less someone would buy it…

Yes, it's the lifetime tenant combined with peppercorn rent that's the issue.

If the rent was half decent I think we'd be able to sell it, albeit very very cheaply, but the rent doesn't even come close to covering the upkeep of the property and that is what is causing the issue.

I believe that it can be, get legal advice. Suppose someone left you a business which was losing money or significantly in debt, I don't think you would be compelled to accept it. I assume that it might be the same with your house.