Inhertience

Looking for some advice here, but also partially just seeing if my thoughts are justified in anyway.

A family friend died suddenly a couple of weeks ago (I didn't know him and last met him 30 odd years ago) and because of this, in his will he left everything to my parents.

As such, this turns out to be quite a lot which means between myself, my sister and my parents we're likely to be getting a high 5 figure sum of money each. Now, this was a complete shock to me when I was told last week, but the first thing I did was straight onto Pistonheads classifieds to see what car I could buy

But thinking head on, the money would be perfect to put down as a deposit on a house and should give us a LTV of 75%, which would mean less on the monthly repayments as opposed to 90% LTV (I live in SE England). Currently living arrangements are that we're living with the in-laws so our out goings are minimal and paying for things towards our wedding for next year.

As much as I want to sink all the money in as a deposit on a house for ourselves, I'd also like to keep some money and maybe buy a nice car, but the budget is unknown, or do I get the coupe handed over and get someone to finally sort the bodywork out and get various niggles sorted, as I've fallen a bit out of love with it at the moment, or do I do that and just get another car along side the coupe.

My advice would be to wait until you actually have the money in your hand so to speak and then you will know exactly what you have to play with.

Discuss things with your future bride to see what she thinks as there may be priorities that are important to her. Just think of the Kudos this will get you.

Then you will probably find you have enough to do all that you are thinking of.

Well, I have a minimum rough estimate of what there will be, due to deceased having a studio flat right in the centre of London that will need to be sold, hence knowing there is a large sum of money coming

I've already spoken with her about it and she said most / all into the house and any left over buys a car. Her left over and my left over are 2 very different things Plus, as my Dad said to me at the weekend. It's my money, no one else's and shouldn't be told what I can and can't do with it.

Totally agree with this, Once all claims on the estate and Taxes are cleared you'll then know what you are dealing with. If the sum is significant then it may actually be able to bring about much more than just a car or a house. It may give an opportunity to make significant life changes, should you have ever had dreams in that direction.

My advice would be to put whatever you have as a deposit on property. When I got a sizeable redundancy payout a couple of years ago, my kids said I should buy a Merc SLS and my wife said a BTL house. My wife won (of course) and the house has already almost doubled the value of that investment (before tax). You weren't expecting the money so you won't miss it but it will give you a better standard of living throughout your home-owning years - especially if you life somewhere that has high housing demand.

Nice suprise though - and I agree I'd be straight on to the classifieds! RIP to the family friend

You should consider setting aside a few pounds for a dictionary.

Other than that I'd try to put at least 3/4 of it into something sensible.

Like an Audi R8 / Ferrari 355

With any large sum of money left in a will you should find out about inheritance tax, there could be a large sum to pay. Look into what the current limit is then estimate how much the estate is worth, tax is worked out on the whole not your percentage. This estimate must include every chair, carpet, collectable and so on. If it's close to that limit work out a way to reduce that total.

Try to avoid using a solicitor as some will take a percentage of the total as their fee. You can do all this work yourself but it will take many, many hours and lots of calls, in the end it's financially worth it.

I would guess how much it could be - imagine it was all mine - look for the best pieces of italian metal I could afford.

Then do that over and over again until the money was actually in my account and then do the safest thing -

... do what the wife says lol

Unless you're a Jaffa,there may well be some kids along at some point.

They will be your every waking thought for life after they are born.

So do something sensible by doing some sort of investment into property around you patch.

Sticky some rainy day money somewhere.

If you have any left then have some fun,wether it's a car purchase or a holiday etc.

Or use it wisely if you are thinking of a career change or starting self
employment.

I can understand dads statement about it being you're money.

But I imagine he is at a different stage in life than you,and may be able to be free enough to think that way.

Good luck with it.

Rip to the family friend.

re the house deposit Begbie. You can get good deals with a 15% deposit at the moment. Let me as and when the time comes. More than happy to chat through the figures if you want

Agreed, property investment when you have the opportunity.

Or don't get married, don't have kids, don't buy a house and buy a really expensive sports car and live in it!

Property!
Definitely its an investment in the long run!
if you pay outright or a large deposit for a property you can afford a decent car anyway! but unless it will appreciate its not worth bothering
I want to retire as young as possible due to deaths in my family so thats what i would be aiming for personally, but not necessarily your choice i understand!
Ultimately enjoy it you never know when the end is

I would go for property as it is an appreciating asset (usually) whereas the majority of vehicles are a depreciating asset.

Also consider a sizeable deposit to avoid the extra cost of Mortgage Insurance which lenders will require on loans where the borrower has little equity. The bit below applies to Australia and I'm sure that something similar applies in the UK:-

What is Lenders Mortgage Insurance?

Lenders Mortgage Insurance (LMI) is one of the ways to help you achieve the dream of homeownership sooner without having the 20% deposit which is typically required by most banks and financial institutions.
With LMI, lenders may allow you to borrow a higher proportion of the purchase price, allowing you to purchase a property with a smaller deposit than would otherwise be required. It may also enable you to borrow at an interest rate that is comparable to a borrower who has a larger deposit.

Who is insured?

The lender is the insured party, not you, the borrower, or any guarantor. Lenders Mortgage Insurance protects the lender against a loss should the borrower no longer be able to afford their loan repayments and the Guarantor (if any) is unable to meet the liability.
Lenders Mortgage Insurance should not be mistaken for Mortgage Protection Insurance, which covers your mortgage in the event of death, sickness, unemployment and disability

Beggars, property is your prime need at the moment. A car will depreciate, in the long term a house won't plus you have security.

If you told me 10 yrs ago that if I had a lump sum I would not use it to buy my dream car I would have called you mad. But now cars are ok, but i'd much rather spend money on my house or put extra into my pension. My mortgage finishes in January too and the sense of achievement is amazing.

One thing. Pay off all debts first, put the money in an interest account for a few months before you spend it. You will be amazed how difficult it is to justify spending money when it is yours! When I was in debt I spent without care. Now after 30yrs I have cleared all my debt I spend very carefully... yes it doesn't make sense but try it. When you see a plus amount in your account that is all yours it makes it a lot harder to justify spending a large part of it

Thanks Adder. I hadn't forgotten about you and will be in touch at some point when I have the funds





I'm in the process of paying off all debt since I have very little expenditure (like paying rent) and it will be cleared by the end of the year / couple of months into the new year. Anyway, you spending carefully? Facebook tells a different story, the railway sign, couple of holidays

That's what happens when you have no debts and pay your mortgage off in your early 50's Things for the home and holidays seem more important than a flash car in the drive.

But seriously, do wait a while after you get the money. Have it in your account and you may find your perspective different and your ideas and priorities change.

It's a tough problem to have

Your money do what the hell you like

Bin the wedding, what's the point? You've been together donkeys years, what is there to learn?

Fix the Coupe it's unique and bang the rest into property and ensure IF you get married the money you invest comes back to you in the event of the highly likely scenario she'll leave you for someone taller/better looking/loaded....

I realise the last sentence doesn't narrow her options much