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Original poster

Selling a share in my home

84 replies

ochreloca · 22/09/2021 09:38

My first post here.
I was newly divorced 10 years ago with a young child. I was made homeless 3 times in 2 years. When my settlement came through it was not enough to buy a property outright, and I couldn't get a mortgage due to the contract nature of my work.
So, I am looking to sell a share in my home to a female single parent who is in a similar position. I live in a lovely area with great schools and facilities, quiet and safe.
Has anyone any advice, perhaps some one who has done this before? I have looked into the legal side and it can be done, but only with cash.
I have always shared my home and have lovely lodgers but am looking for something more.
TIA

OP posts:
TheGrumpyGoat · 22/09/2021 09:39

Do you mean get a mortgage alongside someone else?

TheGrumpyGoat · 22/09/2021 09:40

Ah just saw the cash thing. So you mean to buy alongside someone else, as a cash purchase?

Dontfuckingsaycheese · 22/09/2021 09:45

How would you even find that person? And just because they’re a single mother now anything could happen in future. They might meet someone who has children and want to move them all in to her share. How could you even stop that?? What it you did??

Original poster
ochreloca · 22/09/2021 10:20

No, to stay in my house and have someone buy a legal share, in a similar way to friends buying together.

OP posts:
flapjackfairy · 22/09/2021 10:22

Sounds like a legal minefield tbh.

I think you need specialist advice from a solicitor experienced in this scenario.

Original poster
ochreloca · 22/09/2021 10:22

That's why I am on here!
A share in a home can be sold as well as bought. The person would need to be happy to keep to the initial arrangement for 5 years.
I'm still happily single, no reason why everyone wants to be in another live-in relationship. Some of us learned our lessons.

OP posts:
Original poster
ochreloca · 22/09/2021 10:23

Yes, done that already. Solicitor and financial adviser consulted.

OP posts:
Jenjenn · 22/09/2021 10:26

Sounds like a strange idea op. What do you mean by looking for more than a lodger? Like a bigger lump sum rather than monthly payments?

TheYearOfSmallThings · 22/09/2021 10:28

It sounds as risky as marrying someone you aren't even in a relationship with. So many things could go wrong, and your home would literally no longer be your own.

Original poster
ochreloca · 22/09/2021 10:45

@Jenjenn

Sounds like a strange idea op. What do you mean by looking for more than a lodger? Like a bigger lump sum rather than monthly payments?
Yes, I am offering more security than renting. I already have lodgers, always have, but I'm wanting to pay off the mortgage so all parties are mortgage free. The parent and child would have a safe home in a good area which normally costs a lot and would be out of reach for many. It was for me so I ended up buying a cheap house in a horrible area as I couldn't afford anything else and couldn't get a mortgage. Once I changed job I was OK, but having to live next door to child abusers and drug dealers wasn't fun.
OP posts:
TheGrumpyGoat · 22/09/2021 10:48

If you couldn’t buy a property outright and you couldn’t get a mortgage, how is your current property paid for OP? Just trying to figure out the details here.

TheGrumpyGoat · 22/09/2021 10:49

Ah ok I think I understand now, sorry.

Babamamananarama · 22/09/2021 10:57

No advice OP but I think that's a great idea.

Co-owning a property with anyone brings risks whether that's a romantic partner or friend or someone like you are suggesting who shares another common interest with you.

I've had flat shares that have lasted 5-7 years very happily. I know the financial stake is different but a home is a home and the emotional investment can be similar.

I guess you'd need to be super explicit from the off about all expectations. Eg how would communal spaces be shared? Who is responsible for upkeep, decorating, furnishing? How are decisions about house spend made? What courtesies do you both expect about guests in the home?

SecondRow · 22/09/2021 10:58

What percentage of the house would they be buying?

Say it's 50/50, then you are both mortgage-free and own half the house each - but you have to live together.

What would be the exit plan – can either party force the other to sell in the future? What if you still only have enough for half a house at that point?

Original poster
ochreloca · 22/09/2021 11:14

@Babamamananarama

No advice OP but I think that's a great idea.

Co-owning a property with anyone brings risks whether that's a romantic partner or friend or someone like you are suggesting who shares another common interest with you.

I've had flat shares that have lasted 5-7 years very happily. I know the financial stake is different but a home is a home and the emotional investment can be similar.

I guess you'd need to be super explicit from the off about all expectations. Eg how would communal spaces be shared? Who is responsible for upkeep, decorating, furnishing? How are decisions about house spend made? What courtesies do you both expect about guests in the home?

Thank you. Appreciate your points. I've thought it through and another friend suggested having a lodger arrangement for 6 months first to sort everything out and see if it would work longer term. I just want to give another mum a step up when things are tough.
OP posts:
Original poster
ochreloca · 22/09/2021 11:16

@TheGrumpyGoat

If you couldn’t buy a property outright and you couldn’t get a mortgage, how is your current property paid for OP? Just trying to figure out the details here.
I had to take a permanent job in the NHS which I hated - I normally contract in IT. I went back to it as soon as I'd got the mortgage!
OP posts:
Pythonesque · 22/09/2021 11:19

I think it's a lovely idea, if you have had lodgers you will have a good idea about what works for you. I agree that any arrangement should start as a tenancy / lodger arrangement for the protection of both sides. The last thing you want to happen is for your life to be destabilised by an attempt to help someone else.

So your challenge in part is how to identify someone suitable. Would talking to your local women's refuge be appropriate? I don't know...

titchy · 22/09/2021 11:24

I don't understand what problem you're trying to solve.... you've said that you managed to get a mortgage by working for the NHS. So presumably you still have that mortgage? Or do you still need to buy your ex out or something?

TheGrumpyGoat · 22/09/2021 11:29

It’s an interesting idea in theory. In practice I just don’t know how you’d find someone to buy in.
Your pool of potential buyers would be small… single woman with 1 child(?), who has enough cash to buy in and would be willing to share a house with someone they don’t know, in your particular area.
Would you advertise?

ComtesseDeSpair · 22/09/2021 11:37

You’re essential looking at a transfer of equity and a joint mortgage, just as if you were wanting to give a stake in your property to a new partner. Neither are something I’d want to get into with a relative stranger.

If you want to give a single parent a leg up, why not carefully vet your lodgers and then offer free or very cheap rent to those you deem as most deserving of it, enabling them to save for their own mortgage deposit or children’s future?

Waspie · 22/09/2021 11:52

If you have a mortgage you can't just sell part of the house to someone else. You would need to take on a joint mortgage with the other owner because your mortgage company won't allow a mortgage on part of a property. You would be jointly and severally liable for the full mortgage.

Also, what provision would you have in place if one of you wanted to sell in the future? Or if one of you died? This is what would worry me most.

The legal ownership partition should be easy enough - you own as tenants in common in unequal share (if this is the case). Your solicitor can do this with Land Registry for you.

Original poster
ochreloca · 22/09/2021 11:54

@Waspie

If you have a mortgage you can't just sell part of the house to someone else. You would need to take on a joint mortgage with the other owner because your mortgage company won't allow a mortgage on part of a property. You would be jointly and severally liable for the full mortgage.

Also, what provision would you have in place if one of you wanted to sell in the future? Or if one of you died? This is what would worry me most.

The legal ownership partition should be easy enough - you own as tenants in common in unequal share (if this is the case). Your solicitor can do this with Land Registry for you.

Wrong. According to my financial adviser who does mortgages all day long
OP posts:
FeatheredHope · 22/09/2021 11:57

I understand your noble goal here but it sounds like it’s has the potential for disaster written all over it.

Original poster
ochreloca · 22/09/2021 11:57

@ComtesseDeSpair

You’re essential looking at a transfer of equity and a joint mortgage, just as if you were wanting to give a stake in your property to a new partner. Neither are something I’d want to get into with a relative stranger.

If you want to give a single parent a leg up, why not carefully vet your lodgers and then offer free or very cheap rent to those you deem as most deserving of it, enabling them to save for their own mortgage deposit or children’s future?

@ComtesseDeSpair No joint mortgage, they need a cash lump sum, as I had when I got my divorce settlement. I've had lodgers for many years and want to offer something different now. Why would I offer free rent?
OP posts:
Original poster
ochreloca · 22/09/2021 11:59

@titchy

I don't understand what problem you're trying to solve.... you've said that you managed to get a mortgage by working for the NHS. So presumably you still have that mortgage? Or do you still need to buy your ex out or something?
No problem at all to solve.

I am wanting to offer a home for someone who was in a similar situation to me 10 years ago. I do still have the mortgage, yes, in my sole name. No ex's involved.

OP posts: