PLEASE READ BEFORE POSTING

Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.

We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

How to deal with owning 1.5 homes!

lukeouk
lukeouk Posts: 1 Newbie
in House buying, renting & selling
Nearly 2 years ago, I took out a mortgage on a house with a friend. We were tired of renting and decided to pool our money together for a deposit and buy our own place.

Circumstances have now changed (as we always knew they would) and I now want to buy another house with my girlfriend.

My friend is planning to stay in the first house - at least for the near future - and I want to know my options regarding my half of the property. Can I rent my room/half the house out without a change in mortgage?

Any advice or pointers to useful information would be appreciated. If any more information is required, I'm happy to provide.

Comments

  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    edited 13 February 2016 at 9:25PM
    If your friend wishes to remain in the property then him/her buying you out would seem like the most sensible option. Otherwise if you buy somewhere with your gf you'll be hit with the additional 3% SDLT.

    I'm not sure you can just let out half a property. Essentially someone who moved in would be a lodger of the remaining owner.

    Edit: This current mortgage will impact your affordability when getting another mortgage and if you keep hold of the current property there could be CGT to pay when you eventually dispose of it.
  • silvercar
    silvercar Posts: 48,421 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    If you let your half of the property your friend would have to be agreeable.

    The person renting would be a lodger as they would be sharing with (one of the) owner (s) of the property.

    You don't normally need the permission of the lender to take on a lodger as lodgers don't have many rights.
    I'm a Forum Ambassador on the housing, mortgages, student & coronavirus Boards, money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • dancingfairy
    dancingfairy Posts: 9,069 Forumite
    What did you discuss would happen? I can't believe it wasn't discussed/ the solicitor didn't go through it all with you?
    Easiest/ most sensible option is to sell your share to your friend. Obviously owning half a house might make getting another mortgage harder and may mean higher stamp duty on your 'second' house under the new rules?
    If your friend cant buy you out then I guess you could consider selling your share to a mutual friend? If you have one ?
    I guess in theory either party can go to court to get an order for sale but this would be expensive and would be a last resort if the relationship broke down completely.
    Df
    Making my money go further with MSE :j
    How much can I save in 2012 challenge
    75/1200 :eek:
  • gettingtheresometime
    gettingtheresometime Posts: 6,911 Forumite
    Part of the Furniture 1,000 Posts Name Dropper I've been Money Tipped!
    Just thinking out aloud here but why not rent out your half to your friend who then in turn can rent out to whoever (s)he finds ?

    Or would this be a bad idea?
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 347.7K Banking & Borrowing
  • 251.9K Reduce Debt & Boost Income
  • 452.1K Spending & Discounts
  • 240.1K Work, Benefits & Business
  • 616.2K Mortgages, Homes & Bills
  • 175.3K Life & Family
  • 253.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture