Moving in together, what to do with houses?

downinja

00ec25 wrote: »

If I'm reading this correctly:
- you each have sole ownership of your respective properties?
- you are legally married (as opposed to being merely a "partner")?

Both have sole ownership, but not married.

why do you think the property you purchased to live in as a single person would be suitable for letting? Just because you bought it does not make it the sort of property a landlord would buy in order to let.

My adjoining neighbour is rented property, so that's probably a good clue.

Are any other identical properties in that area already let and what rental rate do they attract? What yield will you get, if your financial aim is simply to cover the costs why are you bothering with the significant risks of being a landlord?

Probably cover costs, the benefit would be slightly less distruption should things not work out in relationship.

Who is the target market for that sort of property: singles? couples? families? students?

Both sides of me are 1 child families.

If you are the sole owner all the rental profit is attributable to you alone. You cannot share it with the missus until after you have paid your tax on it. As a married (?) couple you can make her a co-owner without any CGT implications, but as you imply the o/s mortgage is "large", then any transfer to her could trigger higher rate SDLT (highly likely given it would be an additional property for her and her share would probably be more than £40k?)

Not married.

is your property near her property? You may need to be local to be able to respond to issues as they arise - or else pay an agent to deal with them and therefore factor that extra cost into your calculations

Approximately 10 miles.

xylophone

Why not just each live in your own property until you are certain that you want to make a life together?

Who knows, you might decide to get married!

downinja

xylophone wrote: »

Why not just each live in your own property until you are certain that you want to make a life together?

Who knows, you might decide to get married!

We have done that for a long time.

Wanting to take the next step. Just looking to be financially effecient as well.

Out,_Vile_Jelly

downinja, I am approaching a similar situation to you. Part of the problem is deciding where to live, as our properties are two hours apart and we both like "our" part of town! We both also enjoy our independence and have lived alone for a while.

After renting in London for 12 years I have a low opinion of landlords and letting agents, so have no desire to become one or have to speak to the other ever again. But selling your main asset is a big deal.

Let us know what you decide.

G_M

See


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Red-Squirrel_2

Soundgirlrocks wrote: »

Personally I'd rent them both out and rent a place together to see if living together works. That way there isn't the compromise of one of you moving into the others space and no complicated beneficial interest situations arising

This is a great idea if you each want to be a landlord, you'll be managing two properties and two lots of tenants between you, do you want that?

Personally, and its a big step I admit, I'd want to sell both, rent somewhere for a year, and then pool your resources to buy a new place together if it works out. That does run the risk that property prices rise in that year and if it doesn't work out your sale proceeds won't buy you as much as you had before though.

downinja

Out,_Vile_Jelly wrote: »

downinja, I am approaching a similar situation to you. Part of the problem is deciding where to live, as our properties are two hours apart and we both like "our" part of town! We both also enjoy our independence and have lived alone for a while.

She lives 10 miles from work I live 1 mile from work (both work at same place).

It's a bit of no brainer as far as that's concerned.

Mine is also closer to family and friends/pub

Hers is probably in slightly better condition decor wise, but that probably lends to renting more.

MonkeyDr

My partner and I did a similar thing.

We each had a flat, owned individually. Both were good for letting to a certain market (young professional sharers), as both in lively up and coming parts of london close to transport, and we actually both had had lodgers which had been extremely easy to find.

We decided that I would move into his place, and let mine on a consent to let basis. That decision was based on my fancying a change, him preferring his area (more trendy), his flat being quite newly done up, his area being slightly better for both our commutes, and that rental income:mortgage payment ratio would be greater on my flat.

I didn't pay him rent, but paid my share of bills and committed to saving a certain amount each month which went towards the house we bought together a year or so later. I slightly resented the hassle of being a landlord. Due to various costs I didn't turnover much of a profit, although the price did appreciate. We didn't have a plan B for if we broke up and he kicked me out, although I knew I had a friend with a spare room that I could use until I found a room to rent.

Do your numbers carefully, especially in light of the new tax changes. It only really worked for us because I had a low LTV. Ultimately we ended up keeping my flat and letting it on a BTL when we bought our house together, but I wouldn't do this now that stamp duty rules have changed. I think I am a fairly diligent landlord but really don't enjoy it.