Selling a share of my property

UKBear

I own a property with no mortgage on it which I moved out of about a year ago. Currently, a friend of mine is living in it and I would like to sell to them a 50% share in the property to release some equity but still retain some investment in it.

My friend would need to get a mortgage to pay for his half of the property and would remain living there and I wouldn't expect any additional rent from them as I have no mortgage to pay.

Can anyone tell me how we go about doing this and if there are any issues that we should be aware of?

paddedjohn

If your friend stay living there thenn they should be paying you rent for your half of the house.

What would happen if your friend got married then divorced or you fell out or he died before you? You could be forced to sell your half of the house (or buy back the other half)

macman

Your friend will be getting a bargain, as he will be living rent free in a property which he only has a 50% share in. You will receive no income from it, but will (presumably) will still be responsible for half the overheads. Why?
You need to decide how you will own your respective shares (joint tenants or tenants in common?) If you opt for the latter, he can of course sell his share on without reference to you. With the former, each will automatically inherit the 50% on the death of the first.
Regardless of ownership, you still need some form of tenancy agreement in place.
I suspect that you have not really thought this through and should see a solicitor.
Why not just remortgage if you need to raise some equity? Then you still get the rental income as well.

MX5huggy

I doubt your friend would get a morgtage as proposed because the mortgage company would be unable to repossess the property if they couldn't pay the mortgage as you would own half. As said you need to mortgage the property as a buy to let, this could be tax efficient, see an accountant.

rxbren

either sell it as a whole or rent it out