I'm looking for some advice....
I have put my property on the market for £50,000. I have an offer for £45,000. The mortgage remaining is £42,000 and I can rent it out for £450 pcm, but I am a bit nervous at the thought of being a landlord. Is it better financially to keep the property?
You have not provided enough information for anyone to offer you any sensible advice.
Here are some questions that immediately spring to mind...
Do you live in the property at the moment, or is it a second home?
What is your mortgage interest rate?
What rate would your mortgage lender charge you if you let the property (often 1% on top of the above rate)?
How many years do you have left on your mortgage?
Is there a cost associated with redeeming the mortgage early?
Will you be dependent on the rental income to pay the mortgage?
Will you be able to cope with voids between tenants, or initially good tenants who then find that they are unable to pay the rent?
Does any work need doing on the property before it can be let?
Will the Gas Safety check and EICR reveal any problems that need fixing?
Have you considered
all the costs associated with letting the property?
How certain are you that you can get £450pcm in rent?
Are you going to manage the let yourself? If not, is the £450 before or after deducting agent's fees?
What are the things that make you nervous about being a landlord?
Only when you have the answers to all these (and maybe some other questions too) will
you be able to do the maths and decide whether it makes sense for
you to sell up or let the property.