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Advice needed... Renting our property

(10 Posts)
Lolly1987X Sat 20-Feb-16 14:18:57

Hi, this is a bit of a tricky one as we can't find any information on the net.

Basically my partners house is up for sale due to his ex wife wanting her name off the mortgage. We could take her name off but that would mean him having a fixed mortgage for 2 years and we really want to move into a new house together. The house is not selling. We have had a lot of views but there always seems to be one point that somebody doesn't like.
Anyway my question is, if he goes for the fix rate and decides to keep for another 2 years, but rents the property, would she be entitled to more child maintenance from the rent (basically is it classed as an income) ... The rent would cover mortgage payments and a bit more to put away just in case something needs fixing etc.
He already pays more than CSA say which is not a problem as both the children get everything they need.

Sorry it's long winded.

Thanks in advance for your help. Xx

LIZS Sat 20-Feb-16 14:29:38

It would surely be part of his income so included in the assessment, with expenses offset. Does the fixed rate apply to a btl mortgage?

19lottie82 Sat 20-Feb-16 15:55:32

Your husband will be required to file a tax return for the property. He can off set expenses against the flat. He will then need to pay child support on his finalised "profit" amount.

On a side note, when a property isn't selling, 9/10 it's down to price. Would reducing the asking price be an option, so he can sell it?

DeoGratias Sat 20-Feb-16 16:02:32

Why not try auction? Usually when divorcing couples cannot sell it's because one is being too stubborn over the price usually to make things harder for the ex wife. If you have an auction without a reserve price you WILL get the market price.

Lolly1987X Sat 20-Feb-16 16:09:46

Thanks Everyone. The estate agents have suggested not lowering the price as it is already quite low for what it is. Plus once it does sell there will be no money as they will break even.
Never thought of Auction I'll suggest that too him. Thanks for your help everyone :-)

19lottie82 Sat 20-Feb-16 18:13:45

If you have an auction without
a reserve price you WILL get the
market price.

Eh?

Without a reserve price there is absolutely NO guarantee what they will get for it.

People tend to go to auctions hoping to get a cheaper property than the market price. If no one is willing to pay that now, then why would they pay it at an auction?

Sunnyshores Sat 20-Feb-16 18:19:17

If he is already paying CS amount plus a voluntary amount, then surely she'd have to go back to court to ask for more money?

If you are going to rent it, dont underestimate the costs and the time and effort it will take you, plus stress when things (inevitably) go wrong. Id suggest taking a hit on sale price and moving on with your life together, rather than renting it out.

Lolly1987X Sun 21-Feb-16 22:54:21

Thanks sunnyshores yes he pays the correct amount plus extra to help with parties school uniform etc. Think we are just going to see what happens. It will be perfect for someone x

Familylawsolicitor Sat 27-Feb-16 20:35:40

Is the house in joint names or has there been any agreement it will be transferred to him by way of a court order on divorce, subject to the mortgage?

Is he is the sole beneficial order by written agreement or court order then yes net rental income after mortgage interest and expenses (can't deduct the repayment of mortgage capital) will be need to be declared on a tax return and included in income calculations for child support.
Will there be much profit after mortgage interest is paid?

If the house is in joint names and her claims haven't yet been determined with a financial order on divorce (or potentially a separation agreement properly drafted) she's entitled to half the rental profit as an owner and has a claim on the equity now or in the future if it increases in value....

DeoGratias Sun 28-Feb-16 12:17:25

(If you put it up to auction without a reserve price then yes sorry it might of course not sell but I doubt it).

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