Need help to rent my property

cooboy123

Hi, I've lived away from my flat for over a year in rented property and have the majority of bank accounts etc registered at my rented address.

I'm at the stage I need to either sell my flat as I can't afford the mortgage AND my rent, or rent my flat out. However, I need to spend 4k or so on improvements before I can do this. I reckon I've got a 80K mortgage and flat is worth 95K.

I've a relatively poor credit score and anyone I approach to either get a loan or free up the small amount of equity I do have seem have a problem "identifying home address" as I obviously have 1 address with a mortgage and 1 with my back details etc.

Could do with some advice but ideally I'd like to keep my flat and get income back but need some ££ to do this. Thanks

bryanb

Why can't you live in your flat?

PasturesNew

Why can't you sell your flat?

poppysarah

Sell the flat as is.

Why waste the money doing it up? Just knock 4k off the price....

cooboy123

My job is 200 miles away and not keen on selling as I'd be off "the ladder".

BitterAndTwisted

There is no "ladder"!

Just sell the damned place as is and be done with it

sequence

If you can't afford the rent and mortgage now, how will you afford it during void periods right after the boiler's broke costing you 1K ?

Disaster waiting to happen, sell it.

tbs624

cooboy123 wrote: »

Hi, I've lived away from my flat for over a year in rented property and have the majority of bank accounts etc registered at my rented address.

I'm at the stage I need to either sell my flat as I can't afford the mortgage AND my rent, or rent my flat out. However, I need to spend 4k or so on improvements before I can do this. I reckon I've got a 80K mortgage and flat is worth 95K.

Do you mean you think it's worth that before or after you spend 4K on it? As you are probably aware it is only worth what the punters are prepare to pay at the time that you actually want to sell.

Presumably you bought this flat on a residential mortgage, so you would need to apply to your lender for Consent to Let. The less equity you have in the property the less likely they are to agree, and even when/if they do agree there will be a fee to pay and sometimes an increase in interest charges: there is a greater risk for the lender's funds if the property is tenanted.

If you are already struggling financially you need to be selling it IMO - yes you may get lucky with a T who is reliable but equally you may get one who pays the deposit & first month's rent upfront, then loses his job or just decides he'd rather spend his rent money on other things and is stuck there for several months with you paying the mortgage and no regular rent coming in.

If you are 200 miles away how would you handle the let? Pay an LA? LL insurances, gas safety certs if gas CH/appliances, EPC, - all more ependiture on your already tight budget

Don't forget that rental income also has to be declared to HMRC and that you can only set down the interest portion of your mortgage against the rent not the whole payment. There are obviously other bonafide expenses but many new LLs merely see "can rent for 650, my mortgage is 595 = easy) You'd also need a contingency fund for repairs.....

Sell........or look for a job transfer back there. Have you left it standing empty for the past year btw?