Selling or renting out following a split

SusieT

With regards to renting, the negatives could be that the rent was not paid, therefore costing them both money to pay the mortgage, and possible devaluation of the property if it was not looked after properly. If they then decide to sell they would 1, have to get the tennant to move out (could be difficult and expensive if they decided to stay put until your son and ex have been through courts and eventually had to pay baliffs), and 2. have to get repairs/redecorations done depending on the condition it is left in so that they can market it. 
In their situation it would probably be better to either sell, or to get it valued and fot his ex to buy him out if she wants to keep it long term and rent it out. 
I feel that renting in their situation is not ideal if you want a peaceful life free from arguements!

london21

Better to sell. 

Shula61

Thank you, SusieT. I don't think either of them have properly considered all the risks involved in renting out.

I doubt my son's ex would be interested in buying him out and renting, but that might be worth suggesting as an option!

Shula61

london21 said:

Better to sell. 

Oh, I agree, particularly after the information shared here! Just got a little work to do this end.

canaldumidi

They are spliting. So split!

Maintaining a joint business (property letting is a business) is madnes and I guarantee at some future point will lead to at best problems and at worst disputes.

Read the links to my posts provided by Mary above, and consider all the helpful suggestions made.

rexmedorum

Shula61 said:

Thank you all so much! Lots for them (and me) to think about.

MaryBN, I will get him to read through those links and make sure they both consider their legal responsibilities and the risks involved.

He definitely won't be in a position to buy another property for a good while, so the extra stamp duty needn't be a consideration.

He'd struggle to pay the repayments should the tenants default, but could probably just about manage. His ex is a high earner so I think would be fine but wouldn't be happy!

I suspect they'd just get a letting agency to do the basics.

What if the ex stops paying her share?

Shula61

canaldumidi, I agree with you, and all suggestions are of course being considered. Everything set out here is being passed on, and I am pushing them to sell.

rexmedorum, that's highly unlikely, but obviously something that needs to be considered.

TBagpuss

If the ex is the higher earner then if she doesn't want to sell perhaps she can buy your son out?  It's possible that she could do this even before the current mortgage fix ends, some lenders will waive an ERC f you keep the same product but just go from joint names to sole, although it is entirely discretionary on their part.

She can't force him to continue to own a property jointly although having to apply to court to force a sale is the nuclear option and would involve a LOT of legal costs so not in anyone's interests. 

Shula61

Thank you, TBagpuss. I doubt she'll be interested in buying him out, but suggesting that is on the cards.

And of course, the last thing we would want is high legal costs! I don't think it will come to that though.