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I've inherited some money, what to do?

Sherlock

New Member
As you don't already own a house, you would be better buying your own to live in.
You will get a good deal on a mortgage and no stamp duty to pay on your main home.
Save hard and look at a buy to let once you've got yourself on your feet.
The house which I live in now is part of my job, it has an ag tie to it so the rent is very reasonable, the thinking behind buying my own is security if ever I find myself looking for accommodation.
If I can pay a deposit and the rental income pays mortgage plus surplus then that would be very attractive
 

newbie

Member
Location
Lancashire
The house which I live in now is part of my job, it has an ag tie to it so the rent is very reasonable, the thinking behind buying my own is security if ever I find myself looking for accommodation.
If I can pay a deposit and the rental income pays mortgage plus surplus then that would be very attractive

Go and speak to a mortgage advisor. Explain that your rented house comes with the job but you would like to buy your first home to live in later but need to rent it out until you return to it. They may well allow you to take out a normal home mortgage with less deposit needed and lower interest rates. They may just charge you a small surplus on your mortgage rate. You must emphasize that you want it to be your home eventually. It's definitely worth an ask.
When I moved in with my now husband, I managed to keep my existing mortgage with just a 1% surcharge. It was far better than any other buy to let mortgages at the time.
 

newbie

Member
Location
Lancashire
You cannot rent out a house which is financed through a standard residential mortgage. There will be a covenant in the agreement which stipulates you must reside in the property as your primary residence.

Buying it and then letting it to someone else without converting to a BTL mortgage would be fraudulent.

See post above.
My mortgage provider happily allowed me to keep my existing mortgage with just a 1% surcharge as I was letting it out.
They were fully aware that it was let and just wanted to know who the tenant was and that it was intention to return to the property one day.
If the OP doesn't own another home then it is totally plausible that he would wish to live there of he lost his job.
 

Beowulf

Member
Location
Scotland
That's a different scenario to buying one to let and then possibly moving into it later. Buy to let is a much bigger risk for a lender, the default rate is much higher than residential mortgages, hence the very high deposits they require.
 
I've been lucky enough to recieve some money from a deceased relative, around £20k.
I'd like to invest it wisely
I live in a rented house and have an income to live relatively comfortably.
Ultimately I'd like to buy a property to rent out, but £20k wont pay a deposit.
Any good, serious suggestions please?
Do research on BTL's where would you like to buy? look at up an coming areas with high non-skilled workforce demand. Peterborough worth a go. Houses £140K. Flats £80-90K. Rents: £450-770 per mth, good demand, best put down 25% plus (yes,I know and can do maths).
Ozzie Osbourne has stuffed BTL landlords and the tories were supposed to be on ourside!
Do not consider renting farmland at £200 per ac, but you never know a bank may take your offer of £20K for freehold of a distressed land sale in a couple of years!
Good for you I say. In the meantime dream, scheme, pick brains and imagine that 20K becoming 200K!!!
 

anzani

Member
Do research on BTL's where would you like to buy? look at up an coming areas with high non-skilled workforce demand. Peterborough worth a go. Houses £140K. Flats £80-90K. Rents: £450-770 per mth, good demand, best put down 25% plus (yes,I know and can do maths).
Ozzie Osbourne has stuffed BTL landlords and the tories were supposed to be on ourside!
Do not consider renting farmland at £200 per ac, but you never know a bank may take your offer of £20K for freehold of a distressed land sale in a couple of years!
Good for you I say. In the meantime dream, scheme, pick brains and imagine that 20K becoming 200K!!!

As above but research :
https://www.gov.uk/rent-room-in-your-home/the-rent-a-room-scheme

Potentially, you can let to 2 people, room(s) for up to £7500 p. a tax free. So consider a 3 bed mid terrace in a easy let area (consider students). Retain your own room, for it is your own home.
Clearly it would be only your business where you spend each night. Seek an accountants view before signing the deal.
 

Still Farming

Member
Mixed Farmer
Location
South Wales UK
As above but research :
https://www.gov.uk/rent-room-in-your-home/the-rent-a-room-scheme

Potentially, you can let to 2 people, room(s) for up to £7500 p. a tax free. So consider a 3 bed mid terrace in a easy let area (consider students). Retain your own room, for it is your own home.
Clearly it would be only your business where you spend each night. Seek an accountants view before signing the deal.
As long as not mad axe person,prostitute and canibiss factory etc?
 

Weasel

Member
Location
in the hills
£20k sounds a lot but is not if you lost your job. I would keep most in cash if you want to buy a house. It should get you a deposit and a lower rate mortgage. Plenty will promise better returns but your capital is at risk and you might lose 5% in commission as a starter.
I was once advised to invest £1000 in a trust fund and 5 years later it was only worth £200. And of course the adviser still made his money.


barstewards
 

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Webinar: Expanded Sustainable Farming Incentive offer 2024 -26th Sept

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On Thursday 26th September, we’re holding a webinar for farmers to go through the guidance, actions and detail for the expanded Sustainable Farming Incentive (SFI) offer. This was planned for end of May, but had to be delayed due to the general election. We apologise about that.

Farming and Countryside Programme Director, Janet Hughes will be joined by policy leads working on SFI, and colleagues from the Rural Payment Agency and Catchment Sensitive Farming.

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