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What to do with house(mortgage) after separating (not married)
Socialworkguy
Posts: 16 Forumite
We both own the home jointly, there is a fixed 2.29% mortgage rate until Dec 2024.
The options are to;
Sell the home for approx 300k and after fees and equity get approx 41k each - Pros: Clean ties, good bit of dosh to go travelling or a deposit for a flat, Cons; Selling the home process, estate agents, silly buyers, losing the equity of owning a home, starting lower on the property ladder.
I buy her out for 41k out of the home using a loan from friend and grandad and rent the house out making approx £400 profit pm. Pay the loans back over a year or two. Pros; own the home myself and keep the equity long term, earn profit on renting it. Cons; tied to the house, need to remortage at a higher rate to get her name off which cuts into that £400 profit, plus the effort of renting and issues that come with this.
I lean towards just selling it to move on and use my money to see the world etc and deposit for a flat, but my economical brain says to keep the house for the equity long term.
What would you do?
The options are to;
Sell the home for approx 300k and after fees and equity get approx 41k each - Pros: Clean ties, good bit of dosh to go travelling or a deposit for a flat, Cons; Selling the home process, estate agents, silly buyers, losing the equity of owning a home, starting lower on the property ladder.
I buy her out for 41k out of the home using a loan from friend and grandad and rent the house out making approx £400 profit pm. Pay the loans back over a year or two. Pros; own the home myself and keep the equity long term, earn profit on renting it. Cons; tied to the house, need to remortage at a higher rate to get her name off which cuts into that £400 profit, plus the effort of renting and issues that come with this.
I lean towards just selling it to move on and use my money to see the world etc and deposit for a flat, but my economical brain says to keep the house for the equity long term.
What would you do?
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Comments
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Before you decide, familiarise yourself with what it means being a landlord (if you don't already know). There are lots of regulations and more coming this year. You will need EPC, gas and electrical safety checks, deposit protection scheme, how to rent booklet, plus lots more.
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