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Original poster

Long-term Let with Tenants paying for house improvements

27 replies

sundayopening · 26/12/2018 19:48

I am in a tricky position and wondering if anyone had any advice.
I part own a large house with my siblings which was a recent inheritance.
The house is a beautiful shell, but inside is very dated. Everything (heating,plumbing,electrics, bathrooms,kitchen) runs, but is old-fashioned and needs updating quite urgently.
The house also fails the new Energy Efficiency standards for legally renting it out.
There is a clause in the will which states we are not to sell the inherited house.
It is in a lovely area of the country, but nowhere myself or siblings want to relocate to, and we couldn't afford the bills at the house even if we wanted to live there.
Myself and my siblings don't have any money, other than a few thousand pounds which was also inherited..
We have found someone who loves the house and location, and wants to buy it from us. This isn't possible at the moment, but I am hoping to one day go to court to ask for the restriction on selling the house to be lifted (I have no idea whether it would be).
They have then asked if they can long-term let the house, making the necessary home improvements. (I assume they will want to make the house lovely - but over and above how we the landlords would improve it for just renting it out). This with the view that if we ever sold the house we would offer it to them first.
I would go to a solicitor to draw up a lease, of course, but does anyone know how this might work in practice?
I don't like the idea of the tenants spending lots of money on a house that might never be sold to them (although they could rent it from us for a life-time...even forever...if we couldn't ever sell it to them) and myself and siblings ending up in debt to the tenants if they decided to move on etc?
I know this is a job for solicitors, but I just want to get a general understanding whether this is possible before I spend thousands on a solicitor - I don't even know what sort of solicitor I will need?

OP posts:
Original poster
sundayopening · 26/12/2018 19:52

I don't think we are legally (because of the will) allowed to create a leasehold and 'sell' the house this way......we are allowed to pass it down to future generations, or give it away for no money.
The house has no strong connection to my family, or historical importance....just an egotistical deceased relative!

OP posts:
Highfever · 26/12/2018 19:58

First question. Are deeds now transferred to new owners? Is the wish on the will legally binding?

WereYouHareWhenIWasFox · 26/12/2018 19:59

Surely you can’t actually let the house out without the necessary certificates anyway? Why wouldn’t you get the basics done and then let it out using the rental income to improve the house gradually?

PotteringAlong · 26/12/2018 20:00

Are you sure you can’t sell it? Just because the will says it doesn’t mean it’s legally binding.

Whifty · 26/12/2018 20:00

Why can't you sell it? What was the purpose of the no sell clause? Are you sure that clause is legally binding?

PetraDelphiki · 26/12/2018 20:02

If the property is in your names in the land registry the clause in the will is meaningless. You cannot control what people do with an inheritance once it has been fully inherited. Speak to a lawyer!

mywigwamneedsnewflaps · 26/12/2018 20:24

Speak to a property lawyer first before you do anything - any thoughts , hopes , plans are pointless without knowing where you stand legally

If you looked into letting the property longer term perhaps let it to a local authority housing association who would get it up to sufficient standards to let it out to a tenant.
A local authority may take it on long term and keep the maintenance ongoing

What Petra above said

supergrains · 26/12/2018 20:29

Up to this moment I have personally had meeting with 2 different firms of solicitors, they think the clause in the will is legal (the land registry refers to it). They suggest I get a barrister to look at it and test it in court.
This will take money (maybe up to £50K?), and I haven't seen any indication the clause could be declared not binding, so its a gamble to go to court.

Re wereyou 's point, yes we are planning to get the house ready for rent, but were going to do it on the cheap, (we have no money) and not update anything that wasn't absolutely necessary.
The new potential tenants would probably prefer to do things properly and nicer ascetically (e.g. not secondary glazing but proper double glazing etc).

supergrains · 26/12/2018 20:32

Believe me, we would love to sell it, but I promise you its not looking like we can. That's is why I have asked about letting it long term not selling it.

Highfever · 26/12/2018 20:34

Name change fail.

Ironingboard · 26/12/2018 20:39

I don’t get why your relative would put no selling in the will when they knew it was going to be shared between siblings, seems a bit silly so I think if you did take it to court you’d have a good chance of getting this lifted! If not, Is there maybe some sort of contract solicitors can write up to guarantee the new tenants that they can basically rent it forever then be handed the house when you and your sibling are gone?
Either way it looks costly, it’s a tricky one

Iflyaway · 26/12/2018 20:45

There is a clause in the will which states we are not to sell the inherited house.

Well, that is shit. Know the reason?

As they say in MN terms, you need a HSL to be able to overturn this.

Who the fuck would do this to their children/family....

My dad always said "Well, you can't take it with you. Let's sort it all out before I'm gone". Bless him.

supergrains · 26/12/2018 20:47

Either way it looks costly, it’s a tricky one
I know! Sad

supergrains · 26/12/2018 20:49

Where do you find a shit-hot-lawyer? All the ones I have ever seen seem to only work in 2 gear.

Villanellesproudmum · 26/12/2018 20:50

Can you mortgage against the property to have the works done enabling you to let it out.

supergrains · 26/12/2018 20:51

Been watching Bleak House....don't want to end up in a Jaurdyce & Jaurdyce situation!

AJPTaylor · 26/12/2018 21:37

Can you burn the fecker down and sell the land for development? Now that would be the last laugh.

supergrains · 26/12/2018 21:45

Can't mortgage as the house has no value, can't just burn the house down as the land is included in the clause.
Any ideas about the tenant situation?

LIZS · 26/12/2018 21:48

I wonder if the non selling clause is actually enforceable assuming all co-owners agreed. Perhaps take some legal advice.

Daisydoesnt · 26/12/2018 21:51

I know someone who rented a lovely but very, very run down old cottage. The terms of the rental agreement where that they had the cottage for ten years at no rental cost in exchange for carrying out improvements/ modernisation over that time.

After the ten years you could either renew with the same tennants (they didn't, they moved on), or let it to new tennants. Might that work for you OP?

Villanellesproudmum · 26/12/2018 23:16

I guess you could rent it out for a peppercorn rent but you’d need to be careful writing it up to ensure the works are signed off and to regs etc, the National Trust do something similar as do some Catherdral owned properties.

Villanellesproudmum · 26/12/2018 23:18

Although why does the house have no value? Not being able to sell might mean the bank won’t mortgage due to not being able to claim a stake on any default thinking about it.

lifebegins50 · 27/12/2018 10:26

Could you raise a small mortgage on the property to pay for repair work?

supergrains · 27/12/2018 13:19

Mortgage isn't possible, I've asked several brokers/mortgage companies/bank.

notapizzaeater · 27/12/2018 14:02

Could you take a loan out to do the necessary improvements and pay it back with the rental inc8me ?

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