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    • confused_yoda
    • By confused_yoda 11th Feb 18, 9:03 PM
    • 4Posts
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    confused_yoda
    Should I sell up and rent instead? Or is there a 3
    • #1
    • 11th Feb 18, 9:03 PM
    Should I sell up and rent instead? Or is there a 3 11th Feb 18 at 9:03 PM
    Hi, I have never posted on here before, but I am in need of some advice.
    10yrs ago my husband and I bought a property using a homebuy scheme loan. We were young and just agreed to everything our broker said and we didn't fully understand the implications of it. Anyway we have 2 children and are struggling for space (2 up 2 down small terraced cottage). Financially we have had tough times and this has affected our credit score.
    The homebuy scheme have told us that if we sell our property, we will have to give them 12.5% of the sale price to them (we bought the house for £127k and they have valued the house at £120k). So if we sell we have to give them £15k! Basically our deposit for our next home.
    We tried to see if we could get a new mortgage to cover the current mortgage and the £15k so that we could pay the home equity loan back and get a better rate. We were turned down and was advised to wait a couple of years to try again.
    We need more space now so we are thinking of selling our home and walking away with about £6k profit (after 10yrs this is painful, but at least that home equity loan will be gone). We won't be able to buy somewhere, so we could rent a bigger property instead. We have seen some properties that are perfect but will be about £200 more per month. I feel like it is a step backwards but at this moment in time we need to move out.
    But then I thought we could ask my MIL to rent our current property off us (she is looking to rent somewhere at the moment) and we go and rent somewhere. We could use my MIL's monthly rent to pay our.monthly mortgage and just pay for our rent as normal. I have never rented before and I have never thought about renting out our home either, so I feel quite overwhelmed by what I have read.
    Is it best to sell up and just rent going forward? Or can we rent our property out to my MIL (or even a stranger through an estate/letting agent)? Which would make the most sense? If we did rent, is it quite straightforward?
    Sorry for the long post, just feeling very confused. Thanks in advance for reading this.
Page 1
    • ProDave
    • By ProDave 11th Feb 18, 9:26 PM
    • 635 Posts
    • 677 Thanks
    ProDave
    • #2
    • 11th Feb 18, 9:26 PM
    • #2
    • 11th Feb 18, 9:26 PM
    Remember, if you sit it out and see it through you will eventually own the house.

    If you throw in the towel and rent, then my only advice is put a LOT more into your pensions, as you will need it to keep paying rent in your retirement.

    Plenty of people bring up a familly in a 2 bedroom home. There will come a time when you can move up, just not right now.
    • DCFC79
    • By DCFC79 11th Feb 18, 9:43 PM
    • 30,926 Posts
    • 19,560 Thanks
    DCFC79
    • #3
    • 11th Feb 18, 9:43 PM
    • #3
    • 11th Feb 18, 9:43 PM
    Are you able to rent a property you got via the homebuy scheme ?
    Cant see this being an option unless Ive read it wrong.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • Ms Chocaholic
    • By Ms Chocaholic 11th Feb 18, 9:48 PM
    • 9,055 Posts
    • 55,611 Thanks
    Ms Chocaholic
    • #4
    • 11th Feb 18, 9:48 PM
    • #4
    • 11th Feb 18, 9:48 PM
    Could you extend/loft conversion to give you more space without having to move.
    Thrifty Till 50 Then Spend Till The End

    You can please some of the people some of the time, all of the people some of the time, some of the people all of the time but you can never please all of the people all of the time
    • Jaymie kate
    • By Jaymie kate 11th Feb 18, 10:13 PM
    • 28 Posts
    • 53 Thanks
    Jaymie kate
    • #5
    • 11th Feb 18, 10:13 PM
    • #5
    • 11th Feb 18, 10:13 PM
    I'd say it's always good to have your own house unless distance from house to work factors in or other similar circumstances. Remember renting is favored only for as long as it let's you save more or when paying transpo is more expensive than renting.
    • Davesnave
    • By Davesnave 12th Feb 18, 5:53 AM
    • 24,264 Posts
    • 90,910 Thanks
    Davesnave
    • #6
    • 12th Feb 18, 5:53 AM
    • #6
    • 12th Feb 18, 5:53 AM
    Are you able to rent a property you got via the homebuy scheme ?
    Cant see this being an option unless Ive read it wrong.
    Originally posted by DCFC79
    Even with a 'standard' house and mortgage, lenders aren't keen to allow renting by family members anyway.
    'A society grows great when old men plant trees whose shade they'll never sit in.'
    • confused_yoda
    • By confused_yoda 12th Feb 18, 7:23 AM
    • 4 Posts
    • 0 Thanks
    confused_yoda
    • #7
    • 12th Feb 18, 7:23 AM
    • #7
    • 12th Feb 18, 7:23 AM
    We cannot extend upwards or even outwards (we are in a conservation area)
    • confused_yoda
    • By confused_yoda 12th Feb 18, 7:25 AM
    • 4 Posts
    • 0 Thanks
    confused_yoda
    • #8
    • 12th Feb 18, 7:25 AM
    • #8
    • 12th Feb 18, 7:25 AM
    I am not sure. Would need to check. I know we are limited to what we can do to the property ie. extens, so known my luck, we won't be allowed tl rent out.
    • confused_yoda
    • By confused_yoda 12th Feb 18, 7:27 AM
    • 4 Posts
    • 0 Thanks
    confused_yoda
    • #9
    • 12th Feb 18, 7:27 AM
    • #9
    • 12th Feb 18, 7:27 AM
    That is my feeling too. I think keeping this property could act as a safety net if anything was to go wrong with our rental place. Just need to see if we can rent (and also to get my husband to agree to rent it if we are able to).
    • csgohan4
    • By csgohan4 12th Feb 18, 7:40 AM
    • 4,285 Posts
    • 2,678 Thanks
    csgohan4
    don't forget the legal aspect when renting out, as well as the tax implications.
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • tori.k
    • By tori.k 12th Feb 18, 8:23 AM
    • 3,060 Posts
    • 7,382 Thanks
    tori.k
    If you haven't enquired and have space to extend it would be worth checking out, a house we are looking at this week is in a conservation area and has conditional planning for a additional self contained building at the rear, ( sadly it's only financially worth doing by the current vendor)
    Debit to Credit (stage 1) 3652.34 completed 15/10/16
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    Save 12k in 2018 #76 3000/6000
    • martindow
    • By martindow 12th Feb 18, 9:59 AM
    • 7,440 Posts
    • 4,194 Thanks
    martindow
    If you haven't enquired and have space to extend it would be worth checking out, a house we are looking at this week is in a conservation area and has conditional planning for a additional self contained building at the rear, ( sadly it's only financially worth doing by the current vendor)
    Originally posted by tori.k
    There was another thread recently about houses in conservation areas. Some CAs remove permitted development rights but others don't. If the latter an extension would be possible. It may be possible to check the details on your local authority web site.
    • Pixie5740
    • By Pixie5740 12th Feb 18, 10:59 AM
    • 11,669 Posts
    • 16,422 Thanks
    Pixie5740
    How much is your existing mortgage?
    • Mela322
    • By Mela322 12th Feb 18, 11:19 AM
    • 82 Posts
    • 71 Thanks
    Mela322
    Financially, it seems smart to stay in the house. Your main issue is size. I would look at different storage solutions.

    There are 6 of us in a 3 bed and it works.

    Examples:

    We used a sideboard as our tv stand. Enough space for tv and hifi equipment with loads of storage behind doors and and several drawers.

    Get the tallest wardrobes for storage and if you have space on top, use containers or baskets to make them look tidy.

    Keep clutter and nicknacks to the bare minimum.

    A tall bookshelf can house books and other bits neatly and in one spot.

    Get the smallest kitchen table you can.

    Bunks in the bedrooms with storage underneath.

    Have a ruthless purge of things not needed or not used. Go through one room at a time.

    If I was on the property ladder, I would only come off it if 100% necessary. Hanging on a few years will give you time to rebuild your credit and will put you in a better position later to try that remortgage again or move. All the best.
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