Residential 

Guide to unexpected property ownership

  • Learn what happens after a client has inherited a property and what their options are.
  • Consider whether renting or selling an inherited house is better and what the different markets are like.
  • Understand what to know about becoming an accidental landlord.
CPD
Approx.60min
Guide to unexpected property ownership

Introduction

Many people in the UK are set to inherit a property when a family member or loved one dies.

For many, it may be a leg-up onto the housing ladder, but for other beneficiaries, the decision about what to do with the house that is now legally theirs will be a difficult and, potentially, complex one.

Not only are there tax implications to consider but if the property has been left to multiple family members, there will be several people involved in the decision-making process, for better or worse.

The current condition of the inherited property and its location are also likely to be huge factors in whether to keep the property to live in, or as a second home, or whether to rent it out or sell it.

In many cases, the decision is just as much an emotional one as it is a financial one.

The features in this guide will look at what the options are for those who find themselves in this situation and go to their adviser for help. 

It will also compare renting a property with selling one in the current environment, and what an accidental landlord will need to know about the market.

This guide is worth an indicative 60 minutes of CPD.

Contributors to this guide are: Tony Mudd, divisional director, tax and technical support at St James's Place; Sam Mitchell, chief executive at HouseSimple.com; Simon Heawood, chief executive at Bricklane; Alan Collett, fund manager at Hearthstone Investment; Paresh Raja, chief executive of Market Financial Solutions; Philip Hanley, director and independent financial adviser at Philip James Financial Services; Lawrence Adair, private client senior manager at HW Fisher & Company; David Hollingworth, associate director at London & Country; David Cox, chief executive at Arla Propertymark; Lucy Pendleton, director at James Pendleton; Market Financial Solutions; Royal London; Arla Propertymark.

Ellie Duncan is features editor at FTAdviser and Financial Adviser

In this guide

CPD
Approx.60min
  1. Mr Raja says it's important for those who are expecting to inherit a property to properly understand what?

  2. The temptation when inheriting a property can be to what, according to Mr Mitchell?

  3. Mr Collett says those who inherit a property that they plan to rent out should ask themselves some questions. Which of these is not on his list of questions to ask?

  4. The uncertainty around Brexit will last a while and disproportionately affect which market, according to Mr Mitchell?

  5. Is the following statement from Mr Cox true or false? "Landlords are either lowering rents for tenants or choosing to exit the market altogether to avoid facing the increased costs incurred."

  6. Anyone planning to let to a family member will find their mortgage choices are what, says Mr Hollingworth?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Learn what happens after a client has inherited a property and what their options are.
  • Consider whether renting or selling an inherited house is better and what the different markets are like.
  • Understand what to know about becoming an accidental landlord.

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