I've inherited some money, what to do?

[Sherlock]

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

 

[chickens and wheat]

in that circumstance then the buy to let maybe capital gains tax free , assuming you have to live on farm as part of your job.

 

[newbie]

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.

 

[Beowulf]

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.

 

[newbie]

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]

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.

 

[nick...]

Could buy about 17 shares in google or about 75 in apple,soon to become a billion dollar company
Nick...

 

[sensiblefarmer]

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!!!

 

[Still Farming]

20k of lottery tickets ?

 

[anzani]

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.

 

[Red Fred]

20k of lottery tickets ?

Or Premium Bonds- I used to laugh at mum for putting some savings into premium bonds, but she has made more in winnings than any savings account would have made since the interest rate disappeared.

 

[Still Farming]

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?

 

[yellow belly]

Get good advice from someone who knows the facts
If you are in a tied house you may be able to buy a house get tax relief on the mortgage and capital gains tax relief if you sell it and earn the rent to pay for it

 

[s line]

Or Premium Bonds- I used to laugh at mum for putting some savings into premium bonds, but she has made more in winnings than any savings account would have made since the interest rate disappeared.

Been not so lucky for our family.Got £1000 and won£50 in 14years....

 

[Water Wheel]

This may already have been suggested, but look at :-
Lifetime ISA
https://www.gov.uk/lifetime-isa

Not making a recommendation, just an option to look at.

 

[michael N123]

Invest in a couple of weeks of drugs and hookers.
And don't forget to put a little aside to spend frivolously.

I agree

 

[Weasel]

This is actually the best advice

After getting a 35 restored

He would still have 18000 change

 

[Weasel]

£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

 

[wbow14]

20k of lottery tickets ?

Now that would be interesting. Roulette? 50/50 not bad odds. Spend £50 on drink for a bit of courage and then £19950 on black or red.

 

[Bossfarmer]

Have you considered sinking that 20k into a business and mortgaging the rest?