To sell or let out?

Allie_Z

I have a big decision to make...

Going to buy a house with my partner, selling his, using equity/savings for deposit, hoping to keep mine and rent out.

Mine is only valued at £100k, mortgage of £87k. The mortgage (int only) is currently only £250 pcm, I could rent out for £500+ and start paying some of the capital off. But I'd need a consent to lease, and am fairly sure the lender would only offer this consent at a higher int. rate. (I've reverted to a really low (2.5%) LIBOR linked rate after my fixed ran off).

I have a friend who is looking to rent soon and my flat would be ideal for him.

I just don't know whether it's going to be worth all the hassle, or do I just stick it on the market and hope for the best? I'd love to keep a second property for the future, retirement plan/inheritance for my daughter. I'm certain to lose out at today's prices taking into account what I've spent on it.

I just don't know what to do! Help, please?

mynameisdave

If your lender doesn't give consent to lease then you will need a BTL mortgage and you won't get a decent rate with 87% LTV. You could need to put in another 8K or so to start looking at the best rates.

£250pcm sounds like a low amound. Obviously everybody has different circumstances but I would suggest overpaying on the mortgage (if it is permitted) to reduce the LTV

sarahevie

You won't get the best btl rates with 80% ltv as the previous poster suggested.

The mortgage works are offering a product with only 20% deposit required but most btl mortgages require a 25/30% deposit.