Cant Sell may Have to Rent Question...

leicwest

Hope someone can offer some advice, so thanks in advance.

I moved into a new house last year with my Partner (without selling exisiting house), and have slowly emptied the old house and redecorated it over the last year. The old house has been on the market for some time (4months) now but the market for whatever reason is a little flat in the area, and dont really want to drop the price from what its at.

With the house being empty for a year, I'm now considering renting (which may actually help with selling in the long term) which I had kind of discounted in doing. It doesnt have much mortage left at all, but as im a high tax rate payer I didnt like the though off handing over half the income to the taxman - hence wanting to sell.

I may have an option with transferring property to my partners name who doesnt work so has full tax allowance, and is currenly joint tenant on mortage (which could be cleared) prior to renting out.

So does anyone have any experience in this route, or pros/cons in doing so?

Pixie5740

You'd need to pay off the mortgage on your current property before you are able to transfer it to your partner.

I suppose one of the cons is that you would no longer own the property and your partner would have to take on on the responsibilities that come with being a landlord. I'm not sure if by partner you mean wife/husband, boyfriend/girlfriend or civil partner. If you sign over the property and you're not married you won't be protected if the relationship goes down the pooper.

If you decided to keep and rent out the property yourself rather than transferring it to your partner then there are ways to reduce your tax liability. For example, the mortgage interest can be deducted from your rental income. Membership fees for joining a Landlord Association are also tax deductible.

Thrugelmir

leicwest wrote: »

and dont really want to drop the price from what its at.

Sometimes you just need to know when to cut your losses.

leicwest

Thanks for your replys - when I say partner I mean the Missus (inc 3 kids and 2 dogs)!

Im not fusse about it being in her name and doubt she will run off etc. Id like to keep it long term for the kids, but struggle with the tax side - even if I remortagegd it back up to the hilt it jst seems odd to be paying the interest to bank when i dont need to.:undecided