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There comes a time in everyone’s life when inheritance from loved ones is on the table. However, there are some cases where you inherit unexpectedly from distant or lost relatives. This can be a big deal, opening the door to more financial opportunities.
But inheriting a family member’s prized possessions is an emotional thing. You’ll feel an immense sense of surprise, sadness and gratitude, followed by a dose of stress to boot. What do you do with an inherited property that your family member has loved and lived in for so long?
The best news is you have options – and plenty of them. It’s important to take a breath and consider the possibilities before making any rash decisions. Here’s a quick rundown of the routes you could take.
Get to grips with the situation
Before you do anything, try to understand the situation surrounding the property. Find out whether it’s mortgaged or any outstanding debts are attached to it.
You’ve then got the tricky decision to make as to whether you keep it or not. The property may have strong sentimental value to you and the rest of your family, so your heart may rule your head. You could decide to move into it yourself if it fits your needs. Although some struggle with this prospect, especially if the home evokes too many painful emotions.
Selling is an option if retaining it doesn’t sit right
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If you decide that you’d rather sell the asset on and avoid the emotional baggage keeping it would entail, there are plenty of ways to move on quickly.
Of course, you could list it on the open market with a traditional estate agent. But, let’s be honest, this can take months for a deal to close. The property may need a serious overhaul and declutter to get it into a saleable condition for the open market too.
That’s where a cash buyer could prove an invaluable alternative. If you’re wondering how to sell your house quickly, cash buyer services can offer you a fair cash price – albeit usually lower than the open market value – and you can receive funds in as little as seven days. Some cash buyer services will give you a cash offer in a matter of minutes using their own proprietary software.
Be mindful of the latest UK inheritance tax thresholds too. The government’s focus on inheritance tax increases for farmers means these thresholds could freeze or shrink in the coming years.
Use it to generate stable, long-term income
One alternative to selling the property is to retain it and use it as an asset to earn your family money. Inherit the property, become the owner and let it out to a credible tenant. You can then secure guaranteed monthly rental income that can supplement your family’s lifestyle, while retaining full ownership of the property itself.
There’s nothing stopping you from selling the property further down the line. Renting it out for the short-to-medium-term could be a way of helping you cover the cost of debts or loan repayments to help get you on the straight and narrow.
There’s no doubt that inheriting a home from a loved one is both a blessing and a hurdle to overcome. Don’t make any rash decisions and find the best way forward for you and your family.
