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?

OP I've sent you a PM.

Could you please post the listing here or via pm?

People talking here about being advised about declining to accept a bequest: I've inherited (small amounts) twice & been an executor once and this concept never raised its head. I'm sure it is not routine to even mention it as a possibility. I sense some people might be going down the 'suing for negligence' route which I don't think will have legs.

But planning permission has a use-by date- often 2 years. And there are various 'layers' of PP- from initial in principle, to firm plans with drawings etc.

Has she got a buyer?😁

Would the Council buy it? Or offer it to them free of charge! Worth a shot. They have access to the legals, and eventually could build a small block maybe for older folk or something, giving tenant first dibs. I don't know if that's a possibility, and it may have been mooted before on the thread apologies if so.

So has it been declared ‘defective’ and requires repair to the fabric of the building? If not, what are the reasons no one will lend against it? I know non standard construction is notoriously difficult to mortgage but it’s not usually absolutely impossible, what were the reasons given? Just wondering if there’s anyway round that.

Also, so based on your sums you have gained no financial benefit from this inheritance, I’m also wondering if it can still be refused as an inheritance on that basis even though you have had it longer than the maximum term. Although I also presume it has been fully transferred in to your names so I guess that means it can no longer be refused. Not 100% sure though. I agree you need specialist advice. This sounds like a waking nightmare.

You d be looking at having to offer hundreds of thousands to make a 70 yr old move out of their long term home for which they pay less than £60 a month and have the security of knowing they can't be evicted from

Have you had professional advice from a property lawyer? I beleive there is an opportunity to have the Valuation Office, devalue the property to enable you to increase the rent. I assume the tenant is on benefits, which would facilitate a massive rent increase funded by housing benefit. The other option would be to contact your MP. The better ones are good at helping resolve intractable problems like this.

You have very limited options but there are still things you can try. In the first instance, I would do what some others have already suggested and put it up for auction again - but this time with a specalist auction house who will list it with no reserve (or £1 reserve). There are several who will do this and will have experience of shifting hard to sell properties. It is by far the best option available to you so I would try this first.
If you still can't get rid of it and the council are putting fines on you for non compliance, you can just let the fines mount up. You must apply to the First-tier Tribunal (Property Chamber) on the grounds on the basis that you cannot afford to pay. If you genuinely cannot pay them then the only thing the council can do in response really is a compulsory purchase of the property to take it into council ownership. They won't want to do this obviously and they will probably drag their feet for years but it can be done.
You cannot wrap an already financially insolvent property into a limited company and have it go bankrupt. What would likely happen is that it would be declared an avoidance and you'd still end up personally liable for the money. It's also legally dubious and could make you liable for even more money.
Going personally bankrupt is an option - not necessarily the best one but it is a possibility if nothing else works. It's something you should take advice on though, don't wander into bankruptcy on the basis of suggestions on here. It's a serious thing to get involved in and you need serious advice. Go to someone like Stepchange, and get expert advice.
As others have mentioned, you can refuse an inheritance. It's a pity more people don't realise this. Unfortunately for you, it has to be done before you receive any financial benefit from the inheritance and taking ownership of the house means that it's too late.

What happens to it when people refuse ?

My parents had a sitting tenancy and they were bought out of it in 1998 for £100k. And that property was worth a fortune, hence the trust who owned it being prepared to fork over such a huge sum. OP would have to buy this tenant a house outright for it to be worth it and if she had that kind of money...well the thread would be moot

Yes, that is true. I wonder if you can renew? But once it's granted it'd surely be easier to get it again unless there is a change of circumstances. but I'm digressing somewhat.

OP needs a solicitor who deals with Wills and Trusts, not just property.

In the south of England, developers will buy land with no possibility of planning permission with a view to pushing their luck in 50 years or more. Land is expensive and planning boundaries and laws change.
If this tenant is elderly, he can't live forever. Eventually the property will become viable for demolition and rebuilding. A deveoper can still make money on the smallest of plots with the right design.

Keep putting it up for auction. Some less savoury types may take a punt on it and illegally evict the tenant. Ive known of this happening, they dont care for the consequences and usually get away with it.

I’m a fundraiser for a charity and we wouldn’t accept it. The costs would be too much and we’re not a letting agent. Imagine people who donate in good faith to charity finding out they’re covering the repairs of a house….no thank you!