Relationship break-up and already exchanged contracts!

Thrugelmir

Speak to the builder. Having reserved the plot. Work will be well under way.

Builder doesn't have to release the parties from the contract. Though if they could resell the property then releasing the parties so as no to forfeit their deposit would be a satisfactory outcome.

National_Debtline

Hello there,

If they decide to keep the property and rent a bedroom out, they are able charge £4250 per year without paying any tax. They can also share the bills on top. More info on that here:

https://www.gov.uk/rent-room-in-your-home/the-rent-a-room-scheme

Best wishes,

David @ NDL.

getmore4less

National_Debtline wrote: »

Hello there,

If they decide to keep the property and rent a bedroom out, they are able charge £4250 per year without paying any tax. They can also share the bills on top. More info on that here:

https://www.gov.uk/rent-room-in-your-home/the-rent-a-room-scheme

Best wishes,

David @ NDL.

Sharing the bills has to be done carefully if it is part of the rent or received by the owner it is included in the tax free amount.

http://www.hmrc.gov.uk/helpsheets/hs223.pdf

DigForVictory

Don't let the daft waggon shove him off the property ladder - start looking for a lodger forthwith!

But do also get her signature on "get out of this" paperwork - via a solicitor if necessary. A lesser soul might try to chisel half the costs to date, but I think if that is held out as the stick, the papers will be signed faster.

All the best with property & better luck with affairs of the heart!

National_Debtline

getmore4less wrote: »

Sharing the bills has to be done carefully if it is part of the rent or received by the owner it is included in the tax free amount.

http://www.hmrc.gov.uk/helpsheets/hs223.pdf

Totally agree there.

kingstreet

Isn't this reportable to the mortgage lender?

Effectively, this has gone from a two income application to one.

garth549

Thanks again all,

Just reporting the outcome of this...

Unfortunately the builders would only agree to cancel the contract on complete forfeiture of the desposit (£7k)

The good news is that his ex-girlfriend's parents unexpectedly sent him a cheque for his half of the lost deposit (which he didn't want to accept at first!?!?!). He's now therefore back in the position he was before this happened.

egoode

Thanks for letting us know what happened. That's great he's not left out of pocket however I'm sure that's not making him feel much better about what happened with his ex. I hope things start to look better for him soon.