If you need urgent support, call 999 or go to your nearest A&E. To contact our Crisis Messenger (open 24/7) text THEMIX to 85258.
Read the community guidelines before posting ✨
Options
Renting out a house
Former Member
Posts: 1,876,323 The Mix Honorary Guru
Soo, long story very short, I broke up with my long term boyfriend pretty recently, and we owned a house together. And my first reaction was to want to sell the house asap, repay the mortgage, take my profit and start again. But quite a few people have suggested trying to buy out my other half instead, as it will be quicker and easier, apparently.
Trouble is that while I could probably get a big enough mortgage arranged as a multiple of my salary, I couldn't afford the repayments plus bills, so my mum has suggested buying him out, staying at home for a while (minimal rent/rent free) and then renting out the house to cover the mortgage repayments. Thus ensuring I keep my foot on the property ladder, and having a house to move back into should I be in a more secure position financially at a later date.
So, has anyone either bought someone out of a joint mortgage, or rents out their house, and could offer me sage advice on the matter?
Trouble is that while I could probably get a big enough mortgage arranged as a multiple of my salary, I couldn't afford the repayments plus bills, so my mum has suggested buying him out, staying at home for a while (minimal rent/rent free) and then renting out the house to cover the mortgage repayments. Thus ensuring I keep my foot on the property ladder, and having a house to move back into should I be in a more secure position financially at a later date.
So, has anyone either bought someone out of a joint mortgage, or rents out their house, and could offer me sage advice on the matter?
0
Comments
I'm going to ring up the free mortgage advice place I dealt with when I got the mortgage tomorrow, but just wondering if anyone has any gems of wisdom/personal experience to pass on to me
You might also be wise to check with the local estate agents and see if there's any rental potential in the area. They should be able to tell you if your house is suitable and likely to get rented quickly.
There's also various things you have an obligation to do as a landlord, safety checks and stuff.
Sounds like a good idea though!
If you intend to rent it out for only six months you can probably get away without notifying the mortgage company, but technically you will be in breach of your mortgage terms and conditions by sub-letting. If you're going to do it for more than a short time you will need to tell the mortgage company, who will probably force you to change to another product at a higher interest rate. Buy-to-let mortgages charge more because they are more hassle should you default- if there are tenants with an Assured Shorthold Tenancy they cannot be evicted by the lender. If you don't tell the lender you're letting it out and you default you will run into a lot of problems.
Doubt that will be a problem on my shitbox house! Is the threshold £120,000?
Planning for this to be more of a long-term thing, so will be informing the mortgage company. Will most likely remortage elsewhere anyway, due to current lenders being an incompetent shower of complete bastards
My mum knows a couple of people who own two almost identical houses to mine on the same estate, and they have been renting out with large success for years, which is why she suggested it for me. One does it directly, and the other uses some kind of rental agency, who deal with all the day to day shit for a percentage of the rent. Will have to do my research into that too.
Also, Mum had to pay for contents insurance even though she is renting the place unfurnished because carpets and curtains come under furnishing, even though there isn't any actual furniture in there.
My friend is renting and says that the agencies he found tended to have a pretty high cut and some fees as well, but it could be worth it if you want a more hassle-free time.
The threshold is either £125,000 or £150,000, depending on which part of Leeds you live in. It's only payable on the consideration to him AFAIK, so you should be fine, but people do come up against it sometimes and get very upset.
Beware any early redemption fees when you leave your lender. And if you're with Northern Rock beware the "Help with Costs" that they charge for a further year after your discounted rate ends.