Does this sound like madness to you ?

Bella79

Hi,

Long story made short , me and oh had a business doing really well, brough a lovely big house with large morg, business went down pan, now where really struggling, house been on market for few months not even a sniff, its a new build quite large 6 bedrooms, we need to move because

1) we cant keep struggling like this to make ends meet (cant get anymore income at mo, hes working all hrs he can in a low paid job)

2) need to move areas to be nearer my parents , they have ill health want to be more hands on with caring and helping out.

3) dd starts ft school in sept, dont want to really start her here, if we move areas she will have to go to another school

So, we are looking into renting this out, untill the market picks up, it would mean we rent this for £950 pcm morg is £620pcm, and then rent somewhere smaller (we need to downsize) in the area we want to be, therefore the rent would be cheaper for us and we would make a small amount on the rental of this large house (prob save incase of probs)

Are we mad to be thinking of doing this ? ive only ever heard of ppl renting there houses out when there moving on to bigger better things ?, we would be renting smaller and cheaper than the house we own ?

We also have a lot of cash in this house , house is worth £230k morg is only 130k, all that cash jst stuck in this house that we cant sell.

We just dont know what to do, or if where doing the right thing ?

A few local agents have said the rent is realistic and theres demand at the moment for this type of property, also we would take out a rent garentte scheme that would cover the rent for 12 months on the house we own if we where left without tennants ?

As you can prob tell where new to all this, and need to some good mse advice
Thankyou xx

sooz

Are there just the three of you?

If so, you have a few spare bedrooms? Have you considered getting a lodger or two in under the rent a room scheme?

RAS

You will need permission from your mortgage provider; will they provide it.

LLs insurance, gas Safety certificates and perhaps 15% fees to an managment company.

Suggest you join the LL associations and learn the ropes quickly.

Bella79

ive looked at some of the ll insurance schemes, its seems about 100 py for the gaurentted rent and ive got a quote for £200 per year for the buildings insurance, the house will be unfurnished so i wont need contents ?
the fee to the managment company is 10%, will need to look into gas saftey certs too, i want to do this all above board and properly, its jst confusing !

And i dont really want a lodger, due to the fact i have a 4yr old little girl and wouldnt feel comfy, and we still wouldnt be in the area we want/need

pinkshoes

It sounds a sensible plan to me!

Would you not need contents insurance in case of a fire and the kitchen or bathroom suite needing replacing?

ps - if it's not had any interest, then perhaps it's not worth £230k? Dare you post a rightmove link for constructive critisism???

Bella79

Hi, yes i will post a rightmove link, its priced well, theres jst lodas for sale round here, new development, lots avail, but ours is one of the largest

http://www.rightmove.co.uk/property-for-sale/property-29927620.html

sooz

pinkshoes wrote: »

Would you not need contents insurance in case of a fire and the kitchen or bathroom suite needing replacing?

If you turn the house upside down, & it doesn't fall out, it's covered under buildings.

Caroline73_2

Personally, if I was that desperate to move, I would drop the price to £200k, sell it quickly and use my £70k equity on something smaller. If you are struggling with the mortgage now, how would manage if you couldn't find a tenant or they stopped paying rent?

Bella79

HI,

Thanks to all for advice, still not sure what we are going to do,pros and cons for both sides really

x

BitterAndTwisted

If you're struggling to pay the mortgage now, there aren't any pros. All you will need to tip you over the edge into disaster is one non-paying tenant. That's a risk too far in my view. Drop the price, sell it and take what equity you have left.

DannyboyMidlands

"until the market picks up"

I have friends who have been saying this since 2008 but unfortunately it's just wishfull thinking and a refusal to face up to reality. Since they've been renting and waiting the value has probably dropped by another £30k, inflation is wiping off an additional 5% per year, the tenant is 2 months in arrears and has turned the place into a complete mess (it was freshly decorated when they moved out).

I don't claim to have a Crystal ball. Prices could rise, fall or stay the same but you need to consider all eventualities.