Friend to enter into a joint venture, do up my house, split profits

Herzlos

https://forums.moneysavingexpert.com/discussion/comment/82092151#Comment_82092151

That's nearly half his 'profit' before the costs of the renovation are included. This sounds like a lot of work on his part for what's looking to net him less than a part time job stacking shelves.

Are you confident he'll complete it and won't just wander away after demolishing something?

mlz1413

For £70k less taxes I wouldn't bother.

I'd rather pay him to demolish the lean to and build the extension, then sell being the 100% owner.

Removes being a LL and paying tax on your £1k pm incoming. Removes the worry of will he move out, will he finish in a reasonable time, will his work be good enough, will he sell.

snickpan

https://forums.moneysavingexpert.com/discussion/comment/82092205#Comment_82092205

him and his girlfriend will move in, it's an expense he'd have wherever he lived

_Penny_Dreadful

https://forums.moneysavingexpert.com/discussion/comment/82092153#Comment_82092153

I'm sceptical that replacing a lean-to conservatory would increase the property value by £140,000. I'd want to see a detailed appraisal showing current value, refurbishment costs, expected value once all works are completed and comparable local sales to demonstrate that expected value isn't pie in the sky.

In all honestly, I'd be inclined to get the property ready for market with some decluttering and small cosmetic fixes, then wish your friend the very best in his future endeavours.

TroubledTarts

It's difficult to see the risks versus reward here.

Like others it seems to much of a risk so why bother?

Sell up and do a smaller property with your friend with less financial risk if you want.

Herzlos

https://forums.moneysavingexpert.com/discussion/comment/82092289#Comment_82092289

So the £1k/month is rent? With a proper rental contract, landlord obligations, tax implications etc? Or unofficial with the risks associated?

To be honest this just sounds sketchy all round.

Yorkie1

It does rather seem as though you are determined to continue until you get validation of your plan, rather than having a fully open mind to it.

That's entirely your prerogative, but just checking to see whether you've backed yourself into a corner either mentally or in chat with your friend, and need to assess whether to get yourself out of the corner before irrevocable commitment.

Chief_of_Staffy

I had started on a list of comically outrageous risks you'd be taking on, but there's too much to go at. It would be miraculous if you even broke even against you putting the place on the market tomorrow and selling up. A legal document to mitigate risks won't help you one bit; win or lose, legal proceedings will still drain your bank account.

Section62

https://forums.moneysavingexpert.com/discussion/comment/82093309#Comment_82093309

Almost exactly my thoughts. There are so many things that could go wrong with this, and very few positives to cling to.

Jemma01

Well some ppl like to gamble!