Inherited half a house - what should we do?

[JandLandG]

Hi there...just wanted your thoughts/tips/advice on this one, please.

I've inherited (with my cousin) a nice, suburban semi detached in a big city (not london, sadly!), and am contemplating tarting it up a bit and renting.

I think my cousin will want the money, so I'll have to buy them out.

House worth approx 200k

Will need 5k work doing to it to get it up to rentable standard.

V nice area, lots of good rentals nearby, estate agents have visited and good advice received from local friends.

Seems like a good option to take a small month's income (700pcm before fees/tax etc) and keep the house - then sell it when we need the pension money.

Dont need the cash at the mo, v lucky

Any thoughts, advice.

I'm not expecting stellar capital gains in the next 20 years on it, but it's landed in my lap and i've been meaning to go back into buy to let for a few years...should have done it years ago in london...grrrrrr!

Anyway, your experience and wisdom would be appreciated....I think all the relevant info is written above....

MAny thanks in advance

I think as long as you can financially manage it when its empty (e.g your mortgage is not in jeopardy if you've got an empty month or a non rent payer) i would do it without a doubt. If its not local who will manage it? You might get a tenant like me, who does bits themselves or someone who calls you up to change a lightbulb

The only other thing i would look at is this the right property to let or is it just because its in your lap, you would save on fees sticking with it admittedly. But would the returns be better by pulling out your cash from that and buying, say a 2 bed flat? Admittedly a house will probably go up more in value then a flat, but a monthly return might be better.

dont forget capital gains tax will be applied when you do sell.

How much would you have to pay cousin.

I'd be inclined to take money. you'd have tax on your £700 presumably unless you have no other income.
Repairs. Gas safety certificate each year. And so forth. I pay an accountant
If it was all your house then I'd be inclined to keep it .

I'm 65 I don't want to be a landlord any more. If I was 45 it would be different.
One of my houses has become empty so I'm selling it. I'd have to do it up to let it.

get 2 estate agents estimates, stress you want to know the actual sellign price.
Also check the prices for same houses on the street. Use those figures to make a fair offer to your cousin (so you have some paper evidence)

be aware that there are a lot of legal requirements for landlords, and if you are going to manage it yourself you will need to knwo those.
Do not try to manage it at all if you do not live close by.

Agents fees are expensive and eat up the rent.

BUT if you only have a mortgage on half of it, and it is a nice house, you may get a good tenant and a reliable source of income for years.

Reasearch the difference between letting furnished v. unfurnished

Apart from paying a tenants finding fee, I've done all the rest of the dealings, repairs etc and I live locally

Could you not sell and take your 1/2 to reinvest in a smaller property to keep and rent out?
That's what I have just done. No mortgage to pay if it is empty.

If you're likely to want to move I. Future bear in mind you'll pay higher SDLT if you own another property.

Hey, thanks again for these thoughts....v much appreciated.

We'll see.....ill decide in the autumn, but I think I'm in with this....get it set up and let it tick over for 20 years.

Thanks so much again