New tenancy laws
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| 1 | My sibling and I own a house together that she has been living in for the past few years. She's decided to shift towns and we are in two different minds as to whether to keep the house (and rent it out - I'm not too keen on this option for various reasons) or sell it. She's going to look into buying me out of my share, but that's unlikely to happen. She needs time to decide what to do - if we sell, it's possible she may not be able to own again as her half wouldn't be able to buy her a house anywhere else. I'm not keen to reinvest my half. My question is - is it even possible to have a short term tenant these days? E.g. if I give her until the end of the year to come up with the means to buy me out, or sell, is there any point in us having a tenant in there this year - can we do fixed term until the end of the year? Then if she's able to finance my half, the tenants could stay on, but if not we would sell. WWYD? sarahp24 - 2021-02-07 19:20:00 |
| 2 | Yes you can terminate a fixed term tenancy under the 'old' rules if it is signed up before 11 February. Next week. Otherwise there are ways to end a tenancy, fixed or not. But they are more restrictive than at present, so you will need to study them very carefully to see if you can work with them. artemis - 2021-02-07 19:27:00 |
| 3 | Best to leave it empty. pcle - 2021-02-08 08:34:00 |
| 4 | sarahp24 wrote: what does your property agreement say that you signed up when you bought the property to cover this exact situation. ..? gabbysnana - 2021-02-08 08:42:00 |
| 5 | Her half might not buy another house outright, but it would be a massive deposit. thumbs647 - 2021-02-08 08:45:00 |
| 6 | sarahp24 wrote:
A short term is 90 days or less, otherwise it's a normal tenancy that will be subject to the new tenancy rules (given it won't be happening by the 11th Feb ;) Edited by desi1969 at 12:21 pm, Mon 8 Feb desi1969 - 2021-02-08 12:19:00 |
| 7 | If you do rent it out - will you then be subject to the 5yrs tax? pcle - 2021-02-08 12:25:00 |
| 8 | gabbysnana wrote:
It doesn't say anything about this specific situation. Only that the house can be tenanted if we both agree, and of course there is the clause that says I can give her one month to come up with the means to pay me out or we sell and split the proceeds. But she's my sister, and I want to give her more time than that. It's a new relationship that is taking her out of town, and I'd hate to sell the house and then have her relationship fall through or something. But at the same time I'm not keen on being a landlord when neither of us live within 5 hours drive of the house, and neither are in a position to put lots of money into the house if it's damaged etc. sarahp24 - 2021-02-08 18:23:00 |
| 9 | pcle wrote:
I believe I am anyway, since I've never lived in the house. She wouldn't be, though. We've owned it for 3 years now, so another 2 to go... sarahp24 - 2021-02-08 18:24:00 |
| 10 | thumbs647 wrote:
It would be an ok deposit, but she's on a very low income. When we tried to get her a mortgage on her own a few years back, no bank would take her. I imagine it would be worse now, even though her equity has gone up a lot. Plus the house is in a relatively cheap town as far as real estate goes, but she would likely want to move back up north. sarahp24 - 2021-02-08 18:27:00 |
| 11 | sarahp24 wrote: Yep, she's used it as a residence for over 50% of the time, so the main home exclusion should apply for her. sparkychap - 2021-02-08 19:06:00 |
