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To Sale or not to Sale..

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Author Topic: To Sale or not to Sale..  (Read 1826 times)

McBride

Newbie
Posts: 2

I like property
« on: October 09, 2020, 05:58:18 PM »
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?

Thank you in advance

Hippogriff

Global Moderator
Hero Member
Posts: 3950

I like lots of things
« Reply #1 on: October 09, 2020, 11:21:38 PM »
Not the best time to be thinking of becoming a Landlord.

HandyMan

Newbie
Posts: 25

Landlord - always learning
« Reply #2 on: October 10, 2020, 02:49:49 PM »
Quote from: McBride on October 09, 2020, 05:58:18 PM
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.

McBride

Newbie
Posts: 2

I like property
« Reply #3 on: October 11, 2020, 12:50:32 PM »
Thanks for your response Handyman,

I currently live in the property but planning to move in with my partner
The interest rate is 4.8% currently with 24 yrs remaining on the mortgage, there's an annual fee of £375 to rent it out (need to double check early redemption)
I had work done on the property last year, so no major works needed (boiler service is due this month)
I would be expecting the rental income to cover the mortgage, but I would be able to cover it for short periods (say 3-4 months)
The property is in a block of flats and other properties are renting for £450,
I'm looking to use an online letting agent, to manage it for me.
The nerves being a landlord are centred on it being a new experience/venture, and ending up with a nightmare tenant who doesn't pay the rent, or trashes the property

I really appreciate your constructive feedback and I hear You, that ultimately I have to make the decision. Have a good day :)

Hippogriff

Global Moderator
Hero Member
Posts: 3950

I like lots of things
« Reply #4 on: October 13, 2020, 11:59:53 AM »
Quote from: McBride on October 11, 2020, 12:50:32 PM
I currently live in the property but planning to move in with my partner

And if that relationship breaks down then you'll want your property back and kick some unfortunate Tenant out. This is the kind of amateur / non-invested Landlord the industry needs less of. Just pack up and move on... clean break... if you need somewhere else to live in the future, due to a relationship breakdown, there is not the temptation to inconvenience others by retreating to your safe haven. This is not the money-making opportunity you possibly think it is (especially once any Agent's fees are taken) and, instead, it comes with a whole load of obligations and potential stresses you do not need. Besides, send the right message to your partner - go all-in.

Preferably get a new place together... then no-one has supremacy.
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