The inheritance landlord is someone who has inherited a property from a deceased friend or relative. Sometimes unexpected, there is often no pressing need to realise the asset by selling it, so it can make sense to take a longer term view and let it out instead.
Sometimes beneficiaries cannot agree on a sale, especially if there is an emotional family attachment to the property, in which case the rental option may provide a temporary solution. Through the executors, the property might be able to be let immediately, even prior to grant of probate, providing the estate (and ultimately you) with an immediate income and hopefully a capital appreciation gain from day one.
If the money realised from any sale is to be used to purchase an investment property, it might be worth renting out the inherited one rather than selling it. This is because inheriting a property is one way of acquiring a property without having to pay Stamp Duty (SDLT). This in turn leads to a relatively high yield due to the lower effective total “purchase” price.
Nevertheless, one thing to consider when renting out an inherited property is that it may need refurbishing prior to rental and the cost of this should be taken into consideration. Many inherited properties require modernisation, especially in terms of reaching the minimum legally-acceptable safety standards required to let a property.
So if you know somebody who has inherited a property it might be worth them asking us to help them consider how best to maximise their new investment.