Inherited a house - what to do.

[Pinepeak2434]

Name changed.

I've inherited a house that I'm planning to sell for around £500k. I still have just over £200k remaining on my own mortgage, which needs to be paid off in the next few years. I’m considering using the proceeds from the sale of the £500k house to pay off my mortgage, but I’m unsure whether I should pay it off immediately after selling or wait until the due date. I’m also thinking about buying a smaller property with what’s left and renting it out, but I'm hesitant due to the challenges of being a landlord. What would you do with the money, or do you have any better suggestions?

Sell off the house, pay off your mortgage, put the balance into your pension, likewise pay in what you were paying for the mortgage.

Do not do BTL - you will get better returns and more tax efficient by investing, possibly in a pension depending on your age. I’m a landlord and plan to exit the market as soon as I can. Get professional advice

I've just inherited a rental property, and I can't get rid of it fast enough. I have in front of me the rental income and expenditure for the last year. Every penny of the income went to repairs/refurbishment etc.

So no, I don't recommend being a landlord unless you want a millstone around your neck.

Check the early repayment fees on your mortgage. You might be better paying off 10% each year

What is your mortgage rate? I'd definitely sell up asap and if my mortgage rate was lower than saving rate I'd continue to pay off my mortgage and would invest the money. There is no way I'd get a BTL.

Pay off your mortgage, max out ISA's, have an amazing holiday and put the rest in a high interest account (or more than one if you need the protection thingy)
Do NOT buy a BLT

You can’t immediately put that much into a pension. It’s 60k max per year and then only if you earn enough. However putting as much as you can into a pension is a good idea. I would then look at ISA’s and LISA’s.
If you have have a spouse and share finances you could also use their allowances for pensions and ISA, if you have kids then a junior ISA is also an option.

I wouldn’t bother with a buy to let as it can be a lot of hassle but ultimately depends on your ability to manage it.

You can carry forward unused annual allowance (pension ) from three earlier years. There’s a calculator on the gov .uk website.

Property is a very mixed bag. Our very small 3 bed rental has been an excellent investment for us but we own more then half of it so mortgage cost is minimal. We also live in a high cost of living, university town with a high transient population so rent is decently high and easily covers costs and we have a reliable stream of tenants. Finding a decent agent is an absolute godsend too.

Do your research before you buy a rental property and if in doubt, don't do it.

I think she can afford a BLT ;)

But BTL, it’s not easy even with a good agent, and at the moment you’d earn more investing in S&S. I would put what’s left into cash ISAs and high interest savings while you consider your options.

Keep the house and rent it out. Use the extra income to make additional payments to your mortgage so you can pay it off early.

Just because you can afford something it doesn't mean its a good idea

I think she can afford a bacon lettuce tomato sandwich… was just chuckling at the obvious typo 😳

Oh heck, sorry I see I did a typo
Then I did a stupid
Apologies

@Hoppinggreen👍