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?

Hence why I mentioned bankruptcy.

Personally I'd rather go bankrupt than have to sell my home and become a renter just to use the equity to fund repairs on this tenants house. The OP isn't going to be paying any fines if she's bankrupt, they're just another debt that's wiped out. The OP already can't afford to repair her own home and has no savings left, she's already lost everything. If you don't have a pot to piss in, CCJs are pretty meaningless.

It's also why I don't care about the legal implications of coercion, threats and any other tactics I could come by to get her out. Any consequences of that are going to be far less than a manslaughter charge if she dies in a house fire because OP didn't upgrade the electrics. I'd rather make the tenant's life hell and risk having to take the rap for an illegal eviction than risk a manslaughter charge or have to sell my own home.

Thinking laterally here: Could you gift it to a relative or friend of yours who is very elderly or terminally ill but carrying paying any maintenance until they pass away so as not to inconvenience them. It’s then off your books and when said person passes after a short period whoever inherits the house (or can it simply be left out of their will?) just says they don’t want it. Problem solved!

Agree to pay a decent rent and claim housing benefit to pay for it. It wouldn't cost the tenant anything if the rent was not more than the Local Housing Allowance, unless the tenant has a lot in savings and isn't eligible for housing benefit. It doesn't sound as though this is the case

I'm not sure its as simple as just change the contract to market rent...surely the DWP would investigate a sudden contract change and could consider this a contrived tenancy and could refuse to pay the housing benefit? Putting the tenant at risk of being unable to pay the rent, or at risk of homelessness. I wouldn't want that risk at 70 years old.

I really feel for the op and hope there is something they can do about this but I don't blame the tenant for not wanting to risk the security of their home

We don't know the circumstances that led to them being given a home for life, its a very strange situation but not the fault of the tenant

Or find someone extremely old, gift it to them and make sure they leave it in their will to the tenant 😂

Leaving it to the tenant - genius!

The problem is that the current tenancy CANNOT be raised to market rent and to raise the rent would require the tenant to sign a new agreement which obviously they won't.

What a selfish thing to give to someone as an inheritance. They should have donated it. Are you able to speak to a solicitor?

You are very kind about the tenant!

Could you not go round, set out what you have done on this thread and tell him this property is literally bankrupting you, he would be amenable to something?

He is probably mega wealthy, he pays more or less no rent after all

If he doesn't budge, he's a not very nice person

My point was that even if the tenant did agree to a new contract/market rate on the belief housing benefit would pay, I doubt DWP would just agree to pick up the bill and not see it as a contrived tenancy, putting the tenant at risk.

Except that from what the OP said somewhere upthread the tenant may have special needs of some kind. Perhaps the original owner knew that he or she would need help.

Why would you assume the tenant is rich because they haven't been paying rent for years? Do you think that elderly people who've had their rent pay by housing benefit all their adult life have to be rich for the same reason?

I'm giving an opinion and guessing, that's all. It is allowed on here

Is it made of asbestos? like many of the prefabs were? If so, it would cost a fortune to be removed. Maybe another reason its unwanted?

@Cantgiveitaway be very, very careful about the Limited Company idea. If the liquidators are left with a liability which is costing them money there is every chance they would come after you to make good their losses - as you knowingly formed a company with no hope of being profitable, being married to your husband, the previous owner would mean there was a close connection. Liquidators are not sweet, cuddly people - they are out to make money, and they would definitely see this as fraudulent.

Yup, I agree with this! What an awful selfish person. Take the house as a gift and flippin pay for your own living. Sick of people who feel entitled for others to pay for them!

I must admit to being super curious as to how this all came about, espec as OP said she thinks the great uncle may have inherited the property himself (not that this will solve OPs problem.)

Me too! Possible love child? Repaying a debt?

On a more serious note, OP, I do think your strongest hand is - as gently and diplomatically as possible - revisiting the consequences of the way the estate was settled. Maybe with a mediator? The objective would not be to "do anyone out of their share" ie SIL or drain MIL's care funds. It doesnt sound like you would be talking about that kind of money anyway - it is more quantum that is really difficult for you to fund on a shirt term basis as a family given your own immediate needs. It sounds like twentyish grand might do it to get it to a state that could be sold on to a speculator. Once it is sold the others could be repaid. However cross people are with the tenant, what would be appalling is having a relative go bankrupt as a consequence of incomplete advice. It sounds like it was a horrid time for everyone.

It's not like you've not explored all serious options such as a commercial loan or mortgage.

Gift it to the King?

Surrender it to the govt?

Did you receive legal advice before applying to increase the rent? If the rent was deemed very low, then this would not be classed as a regulated tenancy and you might have a broader range of options.

The last thing I was going to suggest OP is considering double checking the legal advice from the point of inheritance to managing the asset now.

A firm that might have experience of this in the round is one specialised in private client work within a land management/estate management context.

You don't need a big-ticket London firm. We bought a cottage up north which was carved out of a landed estate - we were the first 'private' owners so to speak. I got a recommendation from a friend for a firm to deal with this - they were knowledgeable and the fees were reasonable.

It's not so much location here as the principle of the law and a firm like this is likely to have experience of property assets with quirks and understand the inheritance implications.

ED to add: They'd be able to add their experience of what happens when you try the limited company thing that people on here have suggested.

You'd be looking for this advice to be a negotiating tool, not formally investigating the proceedings. It sounds like there were other heirs too apart from your family, unless I've misunderstood. Lots to consider.

OMG, I'm back. I am so sorry OP.

The half great-uncle must have known this property was a ballache - either he was maintaining it to the required standard and knew full well it was or he wasn't ('cause it was a pain or out of pure negligence.) If it's the latter, the property likely came to you requiring repairs which, if the link a PP posted is correct, should have been funded from the estate prior to disbursement.

I get that would mean (at least but not necessarily exclusively) a claim against DH's family at this point.

It's really not the tenant I am cross with.

I would get legal advice and be firm but fair.

I mean 'claim' informally too - still "negotiating" but with the evidence you need to demonstrate the right moral thing for the guy's other heirs to do is to help you out.