Moving in together, should I sell my flat?

Sticky77

Hello, i have a question please. I'm moving in with my partner and wondering whether to sell my flat or keep it to rent out (as an investment, not for security that we might break up!)
Iv been given consent to let but what iv been advised my flat woul achieve will just cover my mortgage.
The LTV is 90%
I can afford to over pay 250 a month.
so if I sell I will hopefully have a few grand profit or should I keep it?
If the mortage company say I have to change to a buy to let in a years time do I need to have a 70% LTV to qualify for a btl mortgage? And if I don't have 70% will I be made to sell it?
Thank u in advance.
Betti

dimbo61

Will you be able to sell the flat quickly ?
If not then maybe rent out for 6/12 months and see if the market ( housing ) improves
You have been given consent to let and if you get the right Landlords insurance, and rent to the right !! kind of people ( ones who pay the rent and dont wreck the flat) then IT might go up in value while you are paying down the mortgage.

Sticky77

Thanks dimbo61. They do tend to sell quite quickly round there but I could hang on and see what's happening with prices. I just worry the mortgage company will suddenly demand a btl mortgage and I can't afford that.
Thanks again

opinions4u

The key for me is what makes you think that the property is a good investment?

What makes you feel that house prices will give you a better return that other forms of investment?

How comfortable are you at having an investment funded by debt? If the rate of interest on the debt, combined with the cost of maintaining the property, exceeds the income and capital growth generated, what's the point? It's also an all eggs in the same basket situation.

Personal view - it'll be years before house prices show sustained appreciation. I'd sell.

Thrugelmir

Sticky77 wrote: »

Iv been given consent to let but what iv been advised my flat woul achieve will just cover my mortgage.

And if interest rates rise?

Investments produce a return (hopefully), they shouldn't require subsiding.

Sticky77

If interest rates rise above 7% I prob wouldn't be able to afford it. I'm probably niave to all this and just been thinking of when iv paid my mortgage off I will sell, but that won't be for another 20 years. I suppose the letting game is more for people who have a low ltv and can afford the rises.

Thrugelmir

Sticky77 wrote: »

If interest rates rise above 7% I prob wouldn't be able to afford it. I'm probably niave to all this and just been thinking of when iv paid my mortgage off I will sell, but that won't be for another 20 years. I suppose the letting game is more for people who have a low ltv and can afford the rises.

Also only the interest element of your mortgage repayments are allowable against rental income for tax purposes. So you need to factor this in, when thinking that the rental income will cover the mortgage.