Sell Or Rent out Girlfriends Flat

spidermanalf

Hiya, as usual, I have a financial question/need for advice, so here I am!

OK, Girlfriend and I are thinking of moving in together to my house.

Thing is, she has a flat (has one bedroom, kitchen lounge and bathroom and a bit of non communal garden and parking space) in Morley, with a mortgage of 49K. Next door to her sold for 62K in 2 days and 2K over the asking price, and was not in as good a condition of Rach's.

So here is the dilema, with the house prices slowing down, and the 'ceiling' price on these type of properties, are we best selling it now, and taking the money (would be around 12/13K going on the neighbours sale), or rent it out and see how the market goes.

Rach's mortgage is a discounted tracker mortgage so the rent would not mean much profit (10 -20 quid a month) but would give Rach some security if we split up. Or does she sell up, and keep 10K in a high interest account, again for Rach's security if worse comes to the worse!

As you can see there are pluses and minuses to each scenario. And I know it sounds cold and callous talking about of we break up and things, but there is quite a bit of money at stake, and we are just being sensible, which is what you should always be with money!

Soooooooooooo any advice would be appreciated!

lisyloo

Personally I think you would be better off selling but that is a reflection of my views on porperty.

If there is a crash then a property like this will be badly hit (first time buyers will leap frog small flats and go straight for houses).
Happened like that in the last crash.

If you do split up she still has the money in the bank.

All in my opinion of course.

Pal

If your girlfriend is worried about security she could always insist on getting married before you move in together.

MJrocks

I think you two should go for it. You sound pretty grounded and I reckon you know in your heart that it's for keeps and the secutiry stuff is just a standby but the money will be there anyway should she need it. And you won't be worried that you are responsible for her if she moves in to your place and something goes wrong, as I can imagine that might seem like a bit of pressure on you. Get something legal signed so you both know where you are if the worst does ever happen (unlikely) then you know she isn't taking you for a ride and you can get on with enjoing having a hot chick living with you!

spidermanalf

hey 'pal' steady on!

Cheers MJrocks!

Although I think your real name could be Rachel!

yonk

I'm an advisor down my local CAB and we have a big section in the Information System on the difference between marriage and co-habitation!

Basically, unless you are marrried, she will have no right to stay in your house if you split up unless her name is put on the title deeds. So she is right to be a bit worried and think about what might happen. On the other hand, I paid rent on a room I never lived in "just in case" for a year. Complete waste of money. At the end of the day, only you (plural) can decide what is right for you both.

Good luck!