Q:Me and my wife are getting divorced, we own 50% of our property on a scheme where a local housing association own the other 50%.
We have a ￡45,000 mortgage which we have been paying for 4 years. We are tied in for another 12months as it's a fixed rate mortgage.
The house is valued at ￡120,000 now, which means our half is equal to ￡60,000.
I only earn ￡11,000 a year and will struggle to keep the house running on my own. As it is a 50% shared property I don't legally have the option of renting out my 2nd bedroom.
My other option is to move back home with my parents. They are happy for this to happen in the short term. If I do this would it be worth me taking a mortgage on the full 100% of the property (￡120,000) and renting it out privately.
My concern of renting it out is that if I get an interest only mortgage, my mortgage may be higher than my rental income which would not really be benefitial. There is also the risk of house prices falling.
As I am on a low income my options are very limited, if I simply sell my house I would struggle to ever get back on the property ladder and could never afford to rent privately. I really want to avoid falling in the cycle of ending up in a council property.
If I do rent out my property, I will rent it out fully furnished, how can I be sure that whoever rents my property wont just take all my furnature and disappear. Is there insurance cover for this scenario. To maximise my profit (or to cut my losses) I would rather deal with all the problems myself rather than paying an estate agent to deal with the issues.
If I choose to go down the rental route can anybody offer me any advice.
I would really appreciate any advice on any area which I have raised no matter how short or vague as I have so many different options and none of them seem to be ideal.
Thanks for reading:
As I understand it on 11k a year you wouldnt get the mortgage to be able to rent it out.
Additionally, having owned a shared ownership property, the leases usually preclude them being sublet entirely in any case .
There's no way on earth I would buy it and rent it out.