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?

crazy crazy situation!

I’d get it lowered dramatically on Rightmove ASAP. To £100 or something.

No idea. I assume it would go to the legal heir, which was DHs father. But he's dead now. His mum would have inherited it I guess, but she won't take it.

I’d just list it for £100. Someone will chance it.

Edit:
@Spaghettihoopsontoastplease and I are on the same page clearly!

I've dropped you a PM, I'm hoping I might be able to help

webuyanyhouse.co.uk

i guess you've considered the above? They do buy tenanted property, I think.

Maybe you could have this thread moved to Property & DIY or Legal Matters boards to find someone with experience of this hellish situation, who can help further. Good luck OP.

Give it to the tenant?

You haven't read the thread then? 🤦‍♀️

Suggestions:

1. Declare yourself bankrupt. You'll be out of it in a year. This property nightmare could be hanging over your head for 20 years.

2. The unreasonableness of the tenant has meant that the only person who would buy this property is someone who doesn't care much about the law. Identify a local thug and sell it to them at a bargain price Not nice I know. But why should you be made bankrupt by this person?

3. Could you sell part of the garden to the neighbours to fund the required work? Rent out the parking spot in front of the house?

You cannot sell off or rent out parts of a property that is already rented. That property, in its entirety, is the home of the tenant. No one can move in, none of it can be sold, none of it can be rented.

Would be better if it just burned down while the tenant was on holiday.

What a really awful situation. I am sorry to not be able to provide any proper advice either, but only to say don't beat yourself up about not doing things sooner (like refusing the inheritance) It is such a unique circumstance that I very much doubt many on here have been there. My daughter bought a house at auction that was not of standard construction for £90k for cash. It was cheap for the area (around £130k for the same) and it was empty, ex council I think. Actually a nice house wIth 3 beds and a good garden, lived in for a while, but has moved for work, and she now rents it out for an OK standard rent. But it is a buggers muddle trying to think about selling it, and I suspect if she has to do that, she will have to go down the auction route, nobody will touch it for re-mortgage etc. The low tenanted rent, and the need for upkeep is the issue, not so much the non-standard construction. I feel for you, and I hoping someone more qualified will come along to share their wisdom. Feels very unfair. xx

The thread took a turn there.

🙄🙄🙄🙄🙄🙄🙄🙄

Yep, @Cantgiveitaway you really need to take this to the legal branch and your insurer's legal helpline!

Agree - people on those boards (especially Legal) might be more helpful than us lot, much as we would like to find a solution for you @Cantgiveitaway

I’m just saying what everyone stuck in that situation would be thinking. Even though you wouldn’t actually do that!

But I absolutely would find some vital repairs that need done, move the tenant into a hotel, hire cowboy builders and have it “fixed” so it falls down and the tenant cannot move back in.

@Cantgiveitaway , do you have landlord insurance? I hope so because you really should have as a landlord. But anyway, they usually have legal cover which might be more comprehensive than your own home insurer, so do please check.

I'm evangelical about these helplines/insurance cover. I didn't realise I had it as an option re my late mum's rental property and debt, for months. I realised at 10:30pm one night, and immediately called it. I will never forget that young woman lawyer who picked up the phone. Within minutes she'd lifted a huge weight off my shoulders. And that and the other calls I made would have cost me a fortune, had I just gone to a solicitor in the usual way.

Can you advertise is as land only - no house. I’ve seen this done in Australia before.
and either market is as existing property unlivable - land only for sale.
or demolish it and sell the land

There is someone living in the house. How exactly does she sell the land on which that house stands?

That’s the entire problem. Only way to get out of this is for the tenant to die, voluntarily leave, need to move into residential care or the house falls down.

Aaaaaargh!

No she can't. The tenant has a right to live there until she dies. Why aren't people understanding this?

Normally that sort of tenancy makes the landlord responsible only for major structural issues but the tenant responsible for the rest of the upkeep . Are you sure those costs are yours to have ?

When a company goes into liquidation, the liquidator will often disclaim property that is making a loss and it becomes property of the crown. There must be a route. Start a company, buy the property with the company, run it for a while at a loss, liquidate and the liquidator will have to hand it to the crown?

But I’m sure the whole process would cost thousands, create tax liabilities and in the end, they may not disclaim it when you liquidate.

Have you explained to the tenant what they're doing to you and how this is affecting your life? I certainly wouldn't be moving home and "investing" more money into this abyss of a house, just so the tenant can continue living the life of Riley at your expense!

At this point I'd be being very blunt with them and telling them that the property is unsafe to live in and you're not going to be doing the work to make it safe, because you can't afford to. That even if they take you to court you still won't get the work done and nor will they get any compensation, because you'll apply for bankruptcy. Say there'll be no more repairs or maintenance of any kind from you unless they voluntarily agree to raise the rent in line with social housing rents, so around £100/wk.

Ask about their finances, if all they have is state pension they'll get housing benefit and that will pay the rent, it won't cost them a penny extra, it may even mean they pay less if the housing benefit entitlement covers the entirety of the rent.

The tenant has about £12 a week of rent to pay. And all maintenance is landlord responsibility. They have a lifetime tenancy.

Why on earth would they take ownership of the property and make the maintenance their own problem to arrange and pay for? It would cost a lot more than £12/wk and be a lot more hassle for them.

Yes, they have been some ridiculous suggestions but there have also been some good suggestions. How conceited to think yours was the only good suggestion.🙄🙇🏻‍♀️

Try this, OP.

Good luck to you - sounds like a dreadful position for you and your family to be in at the moment