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Aston Lawyer
Aston Lawyer, Solicitor
Category: Law
Satisfied Customers: 10737
Experience:  Solicitor LLB (Hons) 23 years of experience in Conveyancing and Property Law
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Me and my partner own our own home but have about fifteen thousand

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Me and my partner own our own home but have about fifteen thousand pound debt, I really want to move from this house but we are not sure what we should do, we both work now so should we sell this house or rent this and rent another,I would be grateful for any advice as we have been in this situation for years as we not what to do.
Hello and thanks for using Just Answer.

My name is XXXXX XXXXX am happy to assist you with your enquiry.

Could you please give me a little more information as to your circumstances/what you both ideally would like to happen?

Customer: replied 3 years ago.

We both want to move but don't know if it would be better to sell up or rent our property then go and somewhere else.

Hi Mandy,

Thanks for your reply.

Could you afford to purchase another property if you were to sell your existing property?

Kind Regards
Customer: replied 3 years ago.

We don't have any savings just that debt but we both work.We have not had a mortgage before and I don't think we could get one as the debt is in my partners name due to credit cards, so he has not been able to get credit.This house we own is probably worth eighty thousand or a little more, so would not be able to buy house out right not with the debt we have.

Hi Mandy,

Well, on the basis that you wish to move, here are your options-

1. You could sell, clear your debt and look to buy a property on a shared ownership basis (there are several Housing Associations who offer you to buy a 25% or 50% share in one of their houses).

2. You could sell, pay off your debt and then rent. This may give you a nice clean break.

3. You could rent out your existing property, and go and rent another property. This way, you would be keeping your property as "an investment" in that you would benefit from any house price increases over the years. The downside is 2 fold-
a. As you would not be living in the property, as and when you eventually sell, you would be liable to Capital Gains Tax upon any increase in value of the property from the date you moved out.
b. You would have to rely on getting "good Tenants" and making sure that the property is consistently rented out, so that you are financially comfortable. Renting out properties does come at a risk, in that you can't be guaranteed an excellent Tenant who pays on time every month and who wishes to remain in the property for many years. Most Tenancy Agreements are only for 6 or 12 months, so if one Tenant leaves, you would have to make sure that you find a replacement Tenant quickly, so that your monthly income (the rent)is safeguarded.

I hope this sets out your options.

Kind Regards
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