Letting, selling

[Harry Bloomfield]

I have a dithering girlfriend, desperate to move in here with me and me equally keen to have her move in, but on my terms - that she contributes to the running costs, but financially she is in a bit of a hole. She wants to keep her house on for now, just so she has a bolt hole if we fall out. Half the value of the house is owed to mortgage and a charge against it, as a result of her husband who gambled it away before he passed away, plus other debts she has accrued as a result of the mess she is in. She doesn't earn much and just about manages to service the debt, she claims the mortgage should be paid up in a couple of years all being well. She has had it valued at £120K and £550 pm if let.

She has also quite desperate to pack her present job in, move and find another job here, which would not be difficult for her. A friend of her's want to rent it 'as a friend' and she is talking about renting it to them for £400, well below the £550 she has been told it is worth. I have made clear I think this is a really bad idea, as well as illegal, plus what if her friend becomes a squatter? In addition, the house is 50 miles away and not easy to keep an eye on from here for her.

From my point of view, I want her here free of all this debt and money problems which have clouded her life for many years. Yes, I could easily pay off her debts or in fact simply buy the house outright, but then what and it is not my way of doing things, besides - that would make it my property, rather than her bolt hole. She's been dithering now for months.

 

[blup]

She could technically stay on at her place, with her friend as a lodger with no security or squatters rights.

blup

 

[Diver Fred]

Firstly how old is her property? Does it have a recent EPC certificate. If it's in groups D - G then carefully read the EPC to cost up the necessary improvements. If the EPC is more than 2 years old then get a new one - be aware the assessments change regularly and never get easier to maintain a standard. For new lets post April 2025 it has to be an EPC rating of C or higher. If the tenant has gone 'Periodic' then that doesn't apply until April 2028.
She will also need an EICR and if on gas a Landlords Gas certificate before she can let.

Have a look at the NRLA website for most details; you/she may have to join to get access to all the requisite paperwork but they are very good. Certainly there is a list of documents that have to be passed on to the tenant. Use an agent to do the vetting of the tenant - even if it's a friend.

Otherwise it's a case of sell up and secure the resulting funds.

 

[fillyboy]

Yes, I could easily pay off her debts or in fact simply buy the house outright, but then what and it is not my way of doing things,

I think you should either:

1. Pay her debts off, make her happy and have a future together.

2. Walk away and stop trying to work out the most financially beneficial way of taking the relationship forward, it's doomed already.

 

[big-all]

I think you should either:

1. Pay her debts off, make her happy and have a future together.

2. Walk away and stop trying to work out the most financially beneficial way of taking the relationship forward, it's doomed already.

you 100% need a contract tying you both in to a stipulated situation thats at least 90% inclusive off all situations the 10% is give and take and understanding that can cost either dearly but allow trust and limit damage
you need to remember tax implications, 'legal requirements 'and on going costs even iff separation off friendship happens

 

[motorbiking]

She can rent to a friend and save agency fees. She can write a tenancy agreement and it would be enforceable. The deposit is trickier, but in theory she can have a zero deposit agreement, which avoids needing deposit protection.

The only issue is to get agreement from the mortgage firm.

 

[jj4091]

I think you should either:

1. Pay her debts off, make her happy and have a future together.

2. Walk away and stop trying to work out the most financially beneficial way of taking the relationship forward, it's doomed already.

I have to tend to agree with this post as it is a bit confusing if you are asking for relationship or financial advice .
Without knowing either party its is impossible to suggest the best alternative but personally I would not make any decisions while either of you are "desperate". To be honest you make it sound like you might be worried it is an online dating scam or similar.

 

[Harry Bloomfield]

To be honest you make it sound like you might be worried it is an online dating scam or similar.

No, I have no such concerns at all. She has neither invited investment or such help from me, rather she is keen to sort things out somehow herself, besides - paying her debts would be akin to 'buying her', neither of us would want that obligation in the relationship. Obviously walking away is also not an option.

 

[motorbiking]

I would also caution against setting rules for this relationship based on experience of the last.

 

[johnny2007]

Squatters rights don't apply to domestic dwellings anymore.
However, once you let someone in your house as a tenant, you can't just kick them out, you need to evict them through the courts.
This can take a while.
My 2 pennies: if your GF's house has more than one bedroom, she can rent to her friends as lodgers rather than tenants.
In that case, she can kick them out anytime without notice.
However, she will need to retain one bedroom for herself and "live" there.
There's no definition of what living in one place means, so, she could go there occasionally and spend the night.
This would also justify the reduced rent.
Tax wise, the rent a room scheme allows you to take lodgers tax free under a certain threshold (last time I checked it was £350/month), so she would be paying very little tax in any case.
Said all of this, even if she rents it out properly through an agency to vetted tenants, she needs to keep an eye on them and I suggest that in the tenancy agreement she puts a clause to inspect the property every 3 months for the first year.
I went to fix something at my friend's place, rented to 2 millionaire engineers and the place was filthy: needed a good bleaching everywhere, an 8 yarder skip and full redecorating.
This to say that even vetted tenants can be trouble.
Good luck!

 

[jj4091]

No, I have no such concerns at all. She has neither invited investment or such help from me, rather she is keen to sort things out somehow herself, besides - paying her debts would be akin to 'buying her', neither of us would want that obligation in the relationship. Obviously walking away is also not an option.

Glad to hear that, had you considered giving her an interest free loan to clear her debts & mortgage, which she could either pay you back monthly or when she eventually feels secure enough to sell the property. That way she would have easy access to it if it was vacant.

 

[big-all]

also worth noting
insurance for contents may be effected as i null and void because off a lodger [invited person] also things like single person discount on council tax wont apply

 

[Harry Bloomfield]

I would also caution against setting rules for this relationship based on experience of the last.

I'm not sure what you mean by that, surely there needs to be some rules in any relationship, so both parties know where they are and what is acceptable?

 

[Harry Bloomfield]

Some of the debt is personal loans, the mortgage and various Charges against the property. Yesterday evening on the phone, I once again suggested she should find out exactly how much debt she is facing, by taking a large sheet of paper and writing the details down. She has had rather a head in the sand attitude to it all so far it seems. I don't think she even realised the Charges against the property accrued interest - I have suggested she should ring each company with a Charge and ask them.

I also found out a bit more about how badly her husband had treated her before he died, it was incredible that she put up with so much and still didn't bear a grudge.

 

[motorbiking]

I'm not sure what you mean by that, surely there needs to be some rules in any relationship, so both parties know where they are and what is acceptable?

Has she told you her rules.?