[Closed] Property sales / rental question - HELP!!!

could you put it up for rent whilst it is up for sale? then if you find tennants, withdraw it from sale. also there are companies that will garuntee you (a lower) rental income, and try to find their own tennants. It is hard to tell without all of the figures though.

Renting: Unless you have a buy to let mortgage (which you obviously don't), I think your mortgage provider might be a tad miffed about you doing this... that's not to say you can't do it, but just be aware they might get a little annoyed if they find out.

I'd considered that - we can't rent while its up for sale unfortunatley, something to do with allowing tenants to live in peace.

With regards to figures, we're looking at £500 for a 2 bed semi with parking, garden, and 5 miles from town (Wrexham). Like l said, not making money, just covering bills.

Edit: The mortgage provider is fully aware what we are doing. We have consent to let on our current house, we just need to fin a tenant. We would be getting a second mortgage entirely for the new place.

Mosty people can't get mortgages so habe no option but to rent. So yes in general the lettings market is good, however like anything it depends on location.

What do you intend to do though? Are you going to let it out whilst still having it on the market, or are you going to take it off the market for a couple of years or so?

Of course to let it out you will need to sort out safety certificates etc, all cost a couple of hundred etc.

I wouldnt have thought you would get a good tennant who is happy to go month by month knowing that you want to sell the property.

We were in a simialr ish scenario 3 years ago, took the house off the market, let it out and now we are just putting it back on the market for £40k more than we bought it for 🙂

could rent the new place with an agreement to buy once your place sells?

Funkycdunc:

Your last sentence l think is the one l need to take heed of. I'll be investing around £16k in the new house, with an eye to selling ours in a few years minumum (if we can!)

Hmm....

"I think your mortgage provider might be a tad miffed about you doing this... that's not to say you can't do it, but just be aware they might get a little annoyed if they find out."

Did you not read the OP's original post? 🙄

Do not rely on selling the old house to cover loans on a new one, thats just crazy.

It's not loans, just savings. Never had debt in my life (apart from student loans) 😉

Did you not read the OP's original post?

I believe so, though admittedly I did skim it,[s]& re-skimming it I don't see the problem with my post (please educate me). I wasn't posting an answer to his overall position, I was trying to point out that most of the time you can't just start renting out your property willy nilly.[/s]

Opps yes I see now he say "[i]who have approved us for a new mortgage on the new house, and also will give us consent to rent on ours[/i]"

TBH though this does seem a little unusual, and I'd like it in writing before commiting & bear in mind it may be for a limited time only. My mortgage ppl just more than a little shirty when I talked about renting mine.

Don't forget that you'll have to pay tax on the rent you receive. That can make a dent in your income. You can offset items such as mortgage interest (but not capital) payments, wear and tear etc. though - check with an accountant rather than a random stranger on an mtb forum though!

If you can afford to pay for deposit and mortgage on the new place, and if rental on the old will cover the old mortgage, then it seems stupid not to do it. Unless you have something better to spend the money on?

I'd do it without question if the sums added up, but then I rent two houses so am already of that mindset.
There are responsiblities that you should read up on / be aware of, and it can go horribly wrong with the wrong tenants, so don't do it lightly. When its done right (good tenants, you being a good landlord) its pretty easy tbh.

Re: "just covering costs" - I wouldnt bother - undercut the local market by a bit (to gain the pick of the tenants), but not massively. The bills soon rack up if things go wrong, so tucking away a few quid will see you right.

Ws looking at doing the same thing ourselves. Unfortunately the dream house went just before we could get our backsides into gear.

Nearly everyone we spoke to said that the rental market is very strong at the moment because people are earning enough to be able to rent easily, but just don't have the funds in place to get approved for a mortgage for the sort of house they want to live in.

Personally I think it's worth doing. I take it the mortgage on the house you're looking at renting out will be interest only?

I take it the mortgage on the house you're looking at renting out will be interest only?

No it'll be capital repayments but we've extended the term as much as possible.

Unless you have something better to spend the money on?

It's my life savings... Eek!

We rent out four houses and are in the process of getting the fifth. I'd say in your circumstances it's a bit of a risk, as there doesn't seem to be a pot of contingency cash. If you are of a "why not?" mindset go ahead, if you are a worrier, there can be a lot to go wrong. Knowing a few mates and tradesmen who you can rely on helps a lot, as does having time to get round there and sort stuff out yourself. Legally, you don't need much, Energy Performance Certificate and Gas Safety Check are the basics. Landlord insurance from Simply Business is competitive. Check your prospective tenants out thoroughly, I now visit them in their current place to see how they keep it. Get a written reference from the current landlord and employer and follow them up with a phone call. Cross your fingers and make some money. However in your circs, I would sit on my hands until you've sold your house, then look for the next one, or even rent instead of buy, it is looking cheaper and better at the minute.

I have half the money again to cover contingency ie about 7k. But l guess its a bit like 'how long is a piece of string', ie will there ever be enough? I'm not too worried about that. Our current house seems fairly idiot proof...

I'd carry your plan into fruition...
Rent out your 'old' house, and buy the new one.
If you can afford it, and are confident that you can get tenants to cover all/majority of costs involved, then you can think of the 'rental' property as a pension pot...

My plan was to be in a similar situation to you - at present we rent out our 'old' house, and are currently renting where we live. The plan was to save another deposit to buy locally, but...a family bike and shoe habit, plus the bonkers costs of continuing to work (I shudder at how much me and the wife pay to 'continue education in work' and insure ourselves...) means our 'new deposit fund' is pretty stagnant!

DrP

[i]If you can afford to pay for deposit and mortgage on the new place, and if rental on the old will cover the old mortgage, then it seems stupid not to do it. Unless you have something better to spend the money on?

[/i]

or "All your eggs in the same basket"..., tbh they'll always be your 'dream' house up for sale - sell yours, and rent short-term if necessary.

So what did you do Crapknees?

We're in the same position and are thinking of renting out our current house and buying another. We can pay both mortgages if we can't find a tennant and have a slush fund in place for if things go wrong with the rental one. Rent should cover all bills with a bit on the side and the new morgage is in place.

We're third viewing the one we want tonight, just need to sort out the consent to let which original lender has provisionally agreed to.

Fingers crossed...

I'm doing the same thing at the moment. we were 50/50 about renting or selling ours but then found the house we want so are gonna rent our's out. We are also getting a 'consent to let' by our current lender. The rent we get should give us a small return each month after cost's which will go into an account for maintenance on the rental property. As for paying tax on the rent, you don't pay tax on all rent recieved and you can offset things against it, so keep the B&Q reciepts for stuff you do to your new house 😉

If you really want to sell consider the price of your house.

Realise there are lots of considerations (I don't know enough about your circumstances) but people will only pay what they think its worth.

Estate Agents will generally do the absolute minimum to 'sell' your house no matter what you may expect in return for their commission. Whenever I have sold property for the asking price or near to it I have done every viewing and made sure the house was 'dressed' for the occasion.

My last place I bought for £195k and at one point it was 'worth' £240k. It was marketed at £210 for 3 months with about half a dozen viewings. The house didn't look that great IMO as I had moved out and it had lost quite a lot of the stuff that would help a buyer visualise living there (some furniture etc).

Dropped it to £195 and sold within a week.

Moral of the story; if you want / need to achieve a particular price it's up to you to present the property in a way that will make someone want to part with the cash. If you want a quick sale price accordingly.

Good luck with whatever you choose to do though 🙂

Do it, the lovely thing is you can do it for a number of years, hopefully make some profit from the sale later, but be exempt from capital gains as you lived there.

Longer you keep it, the more capital gains you will be liable for though, you need to do your homework, as how long you are exempt from CG depends on years at the property.

just a tip, if you dont want too much of the hassle of landlord/tenant relationships then check with your local council housing department. They often run a letting agency along side their own property portfolio, they are always short of properties to let, they are up to speed on legalities and often do the work at very competitive rates including maintenance and will sort the taxation aspect too, plus no publicity so no problems with your property advertised all over the shop so any low life can squat if vacant etc etc. good luck.

being a landlord now is a bad idea,
the new bedroom tax can reduce your tennants benefits to the size of house they need (not the one they want / may be in today) bloke at work moaning his rental income is reduced and the single mother cant pay as unenmployed thus he cant cover mortgage bill, cant evict as she has child, has to wait for council to rehome her..
Landlords for far too long have made a profit from your taxes and the benefits system and forced housing prices beyond that attainable for many, expect BIG losses in property in the next few years..