home owning or letting??

rob77_2

Hi

Could anyone give me their opinion on my situation. I bought a 3 bed semi in Nov 2003. The place needs a complete face lift. Although I live by myself and do not really think I need all this space at the minute. So my idea is to cut my monthly outgoings by renting a room at my parents place and letting my house out. I think I should save about £200 a month with not having the bills to deal with. My plan is then to use that money to make overpayments on the mortgage or save it so when I do decide to move back in I can get the house modernised all in one go. Or I might sell up in 6 months when my current mortgage deal finishes. My house has increased in a value by about £20000, but everyone says I would be silly to either downsize or step off the property ladder. Any advice will be greatly appreciated! Is letting out pretty straight forward??

Thanks

Poppy9

If there is plenty of room have you considered taking in a lodger. You will not have to pay tax on all their rent so you may still be £200 per month up and you have retained your independence.

Also if you are living in the house with a lodger you may be more inclined to refurbish it.

rob77_2

Thanks for the advice. From my calculations I would need to take in 2 lodgers and move myself into the box room for it to save me more than the option of renting the whole place out. Also the thought of sharing with strangers doesn't really appeal.

Natelle_2

It might be of help in reaching your decision to get hold of a copy of "The Which? Guide to Renting and Letting"