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Shared property ownership with sibling issues

Skag
Skag Posts: 480 Forumite
Part of the Furniture 100 Posts
edited 22 April 2015 at 7:48PM in House buying, renting & selling
I own a BTL house with a sibling 50-50, no mortgage.

We have now parted ways and barely communicate with each other. I wonder what are my options if I want to get out of this 50-50 situation. The sibling is based outside the UK on another EU country.

If I wanted to raise money on this BTL to fund a mortgage, can I do it by only the 50% of the value or do both parties have to agree?

Also, in theory the sibling should be getting 50% of rent or is it down to our verbal agreement who gets what?

Any further info on this is greatly appreciated.

Comments

  • xylophone
    xylophone Posts: 45,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    http://www.hmrc.gov.uk/manuals/pimmanual/PIM1030.htm

    I cannot imagine that you will be allowed to remortgage without the consent of the joint owner.

    Would your sibling be willing to buy you out?
  • Kynthia
    Kynthia Posts: 5,692 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    If the property is in both of your names then the mortgage would be too. Therefore the sibling would need to agree it.

    You can agree whatever split of the rental income you want. Also if the joint property owners aren't married then the HMRC will accept a split that differs from the ownership percentage split when it comes to declaring the income.
    Don't listen to me, I'm no expert!
  • Skag
    Skag Posts: 480 Forumite
    Part of the Furniture 100 Posts
    Kynthia wrote: »
    You can agree whatever split of the rental income you want. Also if the joint property owners aren't married then the HMRC will accept a split that differs from the ownership percentage split when it comes to declaring the income.

    It's not my spouse, it's a cousin. So the 50-50 ownership doesn't imply rent income to 50-50.
  • Skag
    Skag Posts: 480 Forumite
    Part of the Furniture 100 Posts
    xylophone wrote: »
    Would your sibling be willing to buy you out?

    Actually it is me who would like to buy the rest 50% of the house so that I own the 100% of the property.
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