Splitting up should I rent or sell

C

cyclops11

Guest
Hey i could do with some advice. I bought a house a year ago on a 5 year fixed rate. I am now splitting up with my partner so i need to know should we rent it out or try and sell it now. Buying out the other person is not an option as neither of us can afford it.

Can someone do me a pro cons of each option or direct me to a good place for info.

Many thanks.
 
If you bought a house a year ago I'm guessing that it has fallen in value? If you sell now will you make a loss? Also did you pump a lot of money into decorating etc..?

Whether to rent or not depends on what you'd get in rent compared to your monthly repayments on the mortgage. Also keep in mind that being a landlord still involves expense - the place will need upkeep. Do you also really want the hassle of being joint landlord with someone you're splitting from? Until you've sold this house you are remaining involved on some level.

Could a third option be for one of you to remain living there and rent out a room(s) which would pay the other's portion of the mortgage. Sounds very messy. It might mean that one of you would be in a position to buy out the other in a few years?

Would a family member be interested in buying out your ex as an investment or just to give you some breathing space?
 
Hey thanks for the reply. Yeah its gone down alright maybe 20K then whatever we putted into it maybe another 10K. I dont want to be in the house anymore and i dont think the ex does either. so renting out a room aint an option. Nobody on my side would be in a position to invest with me.

Do you know if we were to sell now how the interest rate with the bank works. and if we rent how the taxes and stamp duty (didn't pay any at the time) works?
 
You will need to contact your lender. You current mortgage would allow for owner occupier only. Depending on you discussionns with the bank you might be required to remortgage or they might allow some temporary leeway until you sell.
 
You're the one who decided to buy a house with her :(. If you can't buy her out it's best to get rid of it as these things can get very messy.
 
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