Should I sell or rent out my property?

iwantbargains

Hi

I have a property that I need to sell but the market is pants! Do I carry on with selling it or should I rent it out?

I've heard the rental market is flooded with property that can't sell so am in two minds as what to do.

Any advice or experiences will help no end.

pinkshoes

Why do you want to sell/rent it?

It is a pants time to sell, so expect low offers.

Do you have enough equity to be able to get a buy to let mortgage?

nig0609

do a search on this board, this has been discussed many times in the last month or so

iwantbargains

Wow that was quick! Thanks :-)

Luckily I bought the property to do up so yes there is equity but could do with selling to pay for the debt doing it up!

Cashpig74

DO NOT CHANGE YOUR MORTGAGE TO A BTL MORTGAGE! You dont need to, you are entitled to rent your home out anyway so long as you originally bought it to live in and now you've decided to do something different after a reasonable period of time.

i rent mine out, have done for 3 years now - the bank does not care where the money comes from, so long as its in full and on time.

test the rental market and see what you get from it.

iwantbargains

Thanks Cashpig74.

You are right... The BTL mortgages are a con! They charge way over the odds for them. Also they don't lend so much.

I have spoken to my mortgage company and they have sent o form to fill in regarding letting the property. You are right about they don't care where the money comes from especially now a days. Problem is the debt and how to clear that.

lynzpower

I want bargains please remove the advertising from your signature- advertising is NOT allowed on MSE.

Personally I think it is terrible advice not to change to a BTL mortgage.

Can you afford to pay the mortgage whether the tenant pays or not?

lynzpower

Cashpig74 wrote: »

DO NOT CHANGE YOUR MORTGAGE TO A BTL MORTGAGE! You dont need to, you are entitled to rent your home out anyway so long as you originally bought it to live in and now you've decided to do something different after a reasonable period of time.

i rent mine out, have done for 3 years now - the bank does not care where the money comes from, so long as its in full and on time.

test the rental market and see what you get from it.

Absolutely not true and incorrect advice.

Lenders vary, some simply need a 50 quid admin fee to change to BTL some need more.

iwantbargains

Sorry about the signiature! I forget it's there! Changed it :-)

The bank want to charge me £100 to allow to let it out but this is cheaper than the 2.5% total borrowed fee I would have to pay if I changed to BTL!

pinkshoes

Can you fill us in on some of the maths...?

1. How much do you owe on the property? (i.e. mortgage and other loans)
2. How much are other properties in area selling for (selling, not asking price)?
3. How much rent do you think you could achieve? (look on rightmove.co.uk)

Cashpig's advice is dodgy... You MUST get permission from your lender before renting, and some will require you to change onto a BTL mortgage once your current fixed period finishes. It varies from lender to lender.

iwantbargains

pinkshoes wrote: »

Can you fill us in on some of the maths...?

1. How much do you owe on the property? (i.e. mortgage and other loans)
2. How much are other properties in area selling for (selling, not asking price)?
3. How much rent do you think you could achieve? (look on rightmove.co.uk)

Cashpig's advice is dodgy... You MUST get permission from your lender before renting, and some will require you to change onto a BTL mortgage once your current fixed period finishes. It varies from lender to lender.

Hi Pinkshoes

1)My mortgage is £80000
2) Similar properties are selling for £125-130k
3) Rental 575-600pcm