House Ownership Within a Relationship - Dilemma! Any Advice?

future_planning

Edited as no longer applicable.

RAS

Hi

It make no sense to pay off the existing mortgage - you can claim the interest payments against the rent for tax purposes. If you pay it off, you will pay more tax.

You need to have the difficult - what happens if we split conversation - and then ask a lawyer how to put that into a legal agreement.

Down the line (once the marriage has lasted a few years) for divorce purposes both houses will be assets of the marriage anyway.

BitterAndTwisted

Until you are married it would be a terrible risk for your OH to put any of her money into the house you own.

If you have a mortgaged property I cannot understand why you don't choose to just sell and be free of it if neither of you are ever going to live in it. What's the yield?

future_planning

Thanks for the quick responses and for confirming that my idea was indeed not fully thought out.

Bitter and Twisted - I would love to sell the house just now but would lose the savings I put into it when I renovated... I feel that if I can rent it out for a few years and let things tick over so to speak that I might be in a better position to walk away with my original investment and perhaps even some equity. At present there is no yield, I am just about breaking even.

RAS, I understand what you're saying and as I am not making a profit on renting it out, I am not currently paying any tax although HMRC are fully aware of my situation. Is there any benefit on paying down the mortgage in this respect or as I have been advised before should I be concentrating on building savings while keeping the property on an interest only mortgage in order to minimise my tax liability?

Thanks again for your help, I'm learning as I go!

Beckyy

The only way your OH could be on the deeds of your current house, while it still has a mortgage is if the mortgage was to be put into joint names.

One simple way would be for your OH to buy the new house outright in her name. Keep your house in your name, and when you come to sell it you can either 'buy' half the house off your OH (putting the money into joint savings if you wish) and putting the deeds into joint names, or you can move and buy a new house 50/50 with you contributing something.

poppysarah

future_planning wrote: »

but would lose the savings I put into it when I renovated... I feel that if I can rent it out for a few years and let things tick over so to speak that I might be in a better position to walk away with my original investment and perhaps even some equity. At present there is no yield, I am just about breaking even.

RAS, I understand what you're saying and as I am not making a profit on renting it out, I am not currently paying any tax although HMRC are fully aware of my situation. Is there any benefit on paying down the mortgage in this respect or as I have been advised before should I be concentrating on building savings while keeping the property on an interest only mortgage in order to minimise my tax liability?

Thanks again for your help, I'm learning as I go!

Are you sure about that?

And what if your tenants trash the place and you need to renovate it again?