Selling half my flat?

[steveT350C]

Flat worth about 280K

Interest only mortgage about 134K

I’m in financial dire straits, don’t want to sell, but need cash. Would it be possible to sell half to current tenant?

[Muzzer79]

steveT350C said:

Flat worth about 280K

Interest only mortgage about 134K

I’m in financial dire straits, don’t want to sell, but need cash. Would it be possible to sell half to current tenant?

I think your mortgage provider would have something to say about that.

If you're in dire straits, why not sell the whole thing to the current tenant? You're either desperate or you're not.

[carreauchompeur]

If it’s the mortgage company’s half you will repay them with, no problem. But overall the arrangement sounds a bit of a cluster..ck

[Jamescrs]

Seems more sensible if you are not living in it to sell it whole if you are struggling. Dont go to one of the companies who buy houses for cash quickly though if you can avoid it. They have a nasty habit of trying to cut the price at the 11th hour playing on people's desperation.

[steveT350C]

Just spoken with tenant. Oddly enough he is coming into some money from sale of his mums house so could well be in a position to buy.

Thanks for replies, been getting myself in a right state! Middle of a divorce, selling family home as well, my career in medical device sales is as good as over. I was between jobs when the virus hit, so no furlough etc etc.

[Austin_Metro]

Could you extend mortgage and keep the asset?

Also, take advice on your liability to CGT on disposal of it. It’s not all free money if you have tax liability down the line.

[steveT350C]

Austin_Metro said:

Could you extend mortgage and keep the asset?

Also, take advice on your liability to CGT on disposal of it. It’s not all free money if you have tax liability down the line.

I think CGT will be 20% on the profit? I put in £50k. Property has increased by about 100K so I should get about 130K out?

[Austin_Metro]

Sorry, I don’t know the answer ... just flagging the issue. Others on here will know it backwards.

[DonkeyApple]

Hi Steve. Very sorry to learn of the current situation.

All I would say is that half your flat currently being owned by a bank is a far more benign situation to half being owned by someone living in it with you. Friendships change, both your working environments can change etc.

I wonder if another option, if money coming in and savings have taken an extreme hit would be to consider selling your tenant the whole property with a discount that equates to say two years rent (and appropriate agreement) so that he owns it completely and you can stay living there with zero monthly outgoings for 2 years while you focus 100% on setting up a new career in a stress free environment of no rent, no obligations and the ability to start again, free and clear of everything in two years time?

[steveT350C]

DonkeyApple said:

Hi Steve. Very sorry to learn of the current situation.

All I would say is that half your flat currently being owned by a bank is a far more benign situation to half being owned by someone living in it with you. Friendships change, both your working environments can change etc.

I wonder if another option, if money coming in and savings have taken an extreme hit would be to consider selling your tenant the whole property with a discount that equates to say two years rent (and appropriate agreement) so that he owns it completely and you can stay living there with zero monthly outgoings for 2 years while you focus 100% on setting up a new career in a stress free environment of no rent, no obligations and the ability to start again, free and clear of everything in two years time?

Hey!

Thank you. Yep, it’s been tough, though yesterday evening I’ve been asked to build three websites for a neighbour, which will keep me going for a couple of months.

Thanks for advice; situation is actually a bit more complicated as I am still in family home, wife and kids living with her mother. I’ve got two flats rented out, so in the big scheme of things I’m ok, just getting into debt with no stable income. Just selling the flat in question is the easiest option.

I think all my problems started about 4 years ago when I sold the T350 to pay for loft conversion - it’s been downhill ever since!!