Sell Or Let??

Mrs_Optimist

I got completely sidetracked reading other threads before posting this one - its amazing how you can lose a couple of hours!

Anyway, advice/opinions please on a dilemma Mr O and I have at present. We live in a 3 bed terraced which is worth around 160k (possibly more) with a mortgage of 39k. FIL owns a 4 bed terraced worth 200k which is owned outright. We desperately want to move to the outskirts of town - prices in our area are ridiculous for not a lot of space. Outskirts are cheaper for more house and better quality of life (in country). Mr O is currently a student studying plumbing and is due to become a fully qualified plumber by end of this year. Then the fun of finding a job will start! I earn 14,800 per annum working part time. We have two children. We have to decide if by moving to a nicer house if we should sell ours, release the equity and have a large deposit (I should point out that my FIL wishes to put 100k min in the pot and have an annex on the side of the property we buy so that he can enjoy his retirement with the remainder of the equity in his house (if he sells) and also to help his son not to have such a big mortgage). Or should we release some of the equity get a Let to Buy mortgage and rent our house out? We are able to move in with FIL as he is scarcely there and normally at his girfriends so we could let our house quickly. The rental income would be around 750 per month which is mad - in my opinion- but if that is what people are willing to pay...

What would you do? Sell up and wait to find somewhere suitable to but, whilst living rent free at my FIL (so we would not have any mortgage payments in the interim) plus halving our living expenses (we would only have to pay one set of council tax, water bill etc)

Or take the equity out of the house, Let it and still live at our FIL rent free until we find a house to buy? I doubt we would get a mortgage without my husband earning at present - ideally we would like to be mortgage freee or have a mortgage similar to what we have now. Your valued thoughts would be appreciated! Thanks for reading my post.

Mrs_Optimist

Anyone? Please? I would really value some opinions!

lynzpower

Personally, Id sell it.

As you dont have a very high income At the mo, paying for voids, advertising, letting agent etc, could well make money very tight

Mrs_pbradley936

I would sell it too. but do not be too longer without a home of your own because while it may be attractive to live rent free being out of the housing market could cost you money in the long run.

As an example my mother sold her 4 bed house after she was widowed and moved in with my sister for almost a year before she bought a 2 bed flat. She ended up by paying about £12k more than had she bought a similar place a year earlier.

Mrs_Optimist

Thanks for your responses. I am concerned about being off the property ladder - especially with 2 children to house. If prices drop (and I hope that they do) we will be able to afford a much larger home where we want to be without having a huge mortgage to go with it. If we let our house we can release some of the equity in it and provided the rent will cover the mortgage we can sell later once we have found somewhere permanent to live. There are so many whys and wherefores, thats why I wanted some valuable impartial comments.

clutton_2

i would rent out your current house.