Renting out or letting ex remain in house

Thecrazy1

My brother purchased a house a year ago with his girlfriend. She has now said she wants to split up. Due to the fact they are in a fixed mortgage they will have to rent. The problem is renting separately neither of them have enough to rent separately as they shared the mortgage cost. The agent has said they can rent it out but at the same rate as the mortgage. His ex found a place but not as nice as the property they own. She has now said she wants to stay in the house but needs him to pay £200 per month to help pay the mortgage. The difficult is, that it means he will have to find a property £200 a month less and then if after 3 or 4 years he want to sell the property what are his rights if she decides she wants to live there indefinitely. At least with renters they can give them notice and then sell. Any advice please

Mossfarr

It will be much less hassle (and possibly even cheaper in the long run) to just sell up and pay the early redemption fee.
Lots of previous threads on here from people in this exact situation who wish they'd made a clean break!

Pixie5740

Is there a spare room, could let both co-habit until the fixed rate is up on the mortgage?

Can either afford to buy the other out as that might not lead to ERC on the mortgage?

Possession is 9/10ths of the law. I wouldn!!!8217;t move out and let an ex-BF/GF remain in the property of children were not involved. I!!!8217;d rather take the hit on ERC and have a clean break. If after 3/4 years the ex can!!!8217;t but him out and decides she isn!!!8217;t so keen to sell then your brother could end having to take her to court to force the sale which is expensive and time consuming.

I also wouldn!!!8217;t be keen on becoming a joint landlord with an ex.

G_M

Sell.

If splitting up, then they need to separate their finances. Not doing so will lead to trouble.

Letting will involve all sorts of hassle too - CTL from lender, tax, share of income, share of costs...........

Sell, pay the Early Redemption fee on the mortgage, and move on.

Thecrazy1

The early redemetion could push the into negative equity.

Thrugelmir

Thecrazy1 wrote: »

The early redemetion could push the into negative equity.

How much deposit did they put down?

Thecrazy1

She put nothing and and he put £55000
So guess that would not put them into negative equity.

greendoor665

She's proposing that she stays in the property for which she contributed no deposit, and your brother pays £200 towards the mortgage whilst paying rent for his own (poorer quality) place?

Doesn't sound like a good deal for your brother to me. Also once he gets into this situation he'll find it difficult to kick her out.

Renting it out isn't ideal either. They will both be paying tax on the rental income, plus there are all the other complications of being a landlord. Also he will need to stay in contact with his ex from time to time to manage the property.

There are a whole bunch of other reasons why this is a bad idea. A clean break would be better, they can both move on and your brother should get some/most of his deposit back. It's not his problem that ex can't afford to rent somewhere nice by herself.

Pixie5740

Thecrazy1 wrote: »

She put nothing and and he put £55000

:rotfl::rotfl::rotfl::rotfl:

The correct response to the ex-gf who contributed zip-a-dee-doo-dah towards the deposit and wants your brother to move out and contribute £200 a month to the mortgage is, "Jog on!"

00ec25

Pixie5740 wrote: »

The more correct response to the ex-gf ... is, "Jog on!"

with bells on

your brother needs someone to tell him the facts of life before he ties himself in so many knots it will take years to extricate himself and he won't have much of the 55k left by then