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?

We will put off the further repairs for as long as possible, but similarly, if there were to be an electrical fire and the tenant die, we wouldn't be able to live with ourselves.

You're way too nice. I'd be thinking fuck you bitch and dancing on her grave. Her unreasonableness is beyond a joke.

She ought to be grateful for the luck she's had so far and not be wanting to shaft her new landlord, sending their lives down the toilet just because she's so stingy. Frankly I reckon she deserves the type of landlord who'd send thugs round to intimidate her, smash the place up and bully her into leaving. She'd soon regret her actions when she's paying full market rent elsewhere. I'll pray for you that some such person takes the property on (because nobody else will take it!).

You can avoid the upgrade expenses to EPC C if the tenant writes you a letter saying she does not want the disruption and will not co-operate or admit the workmen. You can then apply for an exemption which lasts either 5 years or until the current tenancy ends. The chances are that if she is elderly she would not give you access anyway.

Could you gift it to the tenants?

It’s almost funny now …

Who owns the land beside it?

It may worth approaching those who do.

If it was behind my parents home I would consider buying it for £1, depending on what a structure survey & immediate repair cost.
Then I would get the work done immediately and be happy to pay modest upkeep for realistically no more than 30 years. Someone in the family cpuld rebuild on it in time.

You won't get anyone to pay more than £1.

The parasite landlords are out in force. Those pesky 70+ year olds living normally and doing nothing other than existing as their rights allow - totally being unreasonable.

Of course she's unreasonable. She's got basically no rent. And has cost the OP her life savings in property repairs.

It's unreasonable for the tenant to pay about £12 a week in rent while OP would have to move home to a worse area, a smaller property, selling her own home to become a renter herself and making her DC move schools and leave their friends behind - all because this selfish tenant won't pay any kind of halfway reasonable rent (that she'd probably be able to recoup in housing benefit too!).

She's got good landlord and secure tenancy. So far no reasonable landlords, like social housing, have wanted it even for free (and certainly nobody's going to buy it) so only person likely to take it on is someone who probably wouldn't be a good landlord or care much about the law and would try to get her out.

So why can't she be grateful that for her entire life she's never had to pay any real rent, accept that this is no longer a fair situation, since her landlord isn't rich or a big business and is basically bankrupt themselves because of her, and that she needs to just pay some higher rent?

The tenant is shooting herself in the foot treating OP like shit the way she is. She's going to lose a good landlord (and probably her home) over her actions.

So you didn't sign any paperwork relating to the property? Whose name is it in now?

Did you see the will? Was it definitely left to your DH in the will? I was just wondering if it's possible it was actually left to his father and he didn't want the hassle...

I'm glad you're not my landlord.

It’s too late to reject the bequest, but you could do this:
You must immediately try to move the property out of your personal name to stop the personal liability from escalating.

• The Action: Incorporate a brand new UK Limited Company online today (it costs around £12–£50 and takes 24 hours). Instruct a fast-tracked conveyancing solicitor to transfer the property deed from your personal name to your new company for a nominal value of £1.
• The Result: The urgent maintenance liabilities and the tenant's rights are legally transferred to the company. Because the company has no money and no other assets, it will instantly become insolvent. The company can then be wound up or forced into compulsory liquidation. The liquidator will formally disclaim the house as "onerous property" under Section 178 of the Insolvency Act 1986, passing it safely to the Crown (Bona Vacantia).
• The Risk: You must do this before the local council issues a formal personal enforcement notice against you. A solicitor must ensure this transfer is not viewed as a fraudulent conveyance, but because the property has genuinely negative value and you are genuinely unable to pay, insolvency is the correct legal framework.

i would contact an insolvency practitioner ASAP to get this started. Good luck.

Yes. I'm sure if those people criticising the tenant had been living in a cheap rental property for years which they liked and called home, they'd willingly move out or take on a huge financial burden at the age of 70 because they felt sorry for their landlord.

The OP mentioned somewhere that the tenant is an uncle so he’s a bloke - not sure why she’s using they / them for him.

He’s also being unreasonable even if he is within his rights. I can see why he wouldn’t want to own the place or move out but having had such a good deal for years it would only be fair to meet the OP & her DH halfway.

No. They inherited from an uncle.

Why?

Good idea

That’s good advice too.

Good luck OP.

This has been discussed extensively - because the tenant is paying 12 quid a week in rent, there is no incentive for them to take ownership.

sorry you’re answering the same questions over and over OP! What a strange and frustrating situation.

Are expenses tax-deductible on rental properties in the UK?

I’m so sorry, this is awful.

No wonder the tenant doesn’t want to own - they pay £660 p/y and you have to pay for all the upkeep! And it was £48 p/y?!

Who was the previous owner? And why was this peppercorn rent set up? Was the previous owner in someway responsible for the tenant, hence the basically free rent and wanting someone else to take on the responsibility upon their death?

were you close to the previous owner? Who got the rest of their estate? Do you think they knew what a poisoned chalice this was? Or was it meant kindly?

sorry for so many questions!

I think a charity may be a good option. Once this tenant is gone, would they be able to rent it out for a decent rent? Because I’d imagine that’s the only way they’d be interested.

You do get abandoned properties that are just left to rot. The issue is that you’ve inherited the obligations to the tenant. I would maybe explore that avenue - see if there is someway to end the tenancy. Perhaps if the tenant could be given the choice to take it on themselves or leave.

https://www.citizensadvice.org.uk/housing/repairs-and-housing/repairs-and-housing-conditions/getting-your-landlord-to-do-repairs/asking-the-council-to-help-you-get-repairs-done/applying-for-a-grant-or-other-assistance-with-repairs/?utm_source=chatgpt.com

Could you be entitled to a grant for repairs?

Im so sorry @Cantgiveitaway what a milestone to be left! Who put in place the lifetime tenancy?

I think lifetime tenancies need a judicial review tbh, its utterly nonsense that your costs in ownership should ever be more than the rental income.

I dont know if you can relinquish ownership at all. That is what I would speak to a solicitor about.

But I agree with you, who would buy a house today knowing it'll cost them money until the tenant leaves which could be decades and then, the sure of the property isnt going to create a lot when they eventually leave either? 😱

Hire the squatter people who “rent” it legally from you and make them uncomfortable. (You might need to not re-sign their lease?)

Oh OK, I see, sorry.

Are you actually serious?