Any constructive advice, we've run out of ideas!

lessonlearned

To sell or not to sell

You mention that you need £150K to clear the mortgage and that you would walk away with nothing.

If you can let it out so that the rental income covers all or nearly all of your outgoings then I would hang on till the market improves. It seems such a pity to "give it away".

Obviously if you cannot make the figures work and you would be letting at a loss then you would perhaps be better to sell.

I know one or two people in a similar position to yourself and they have gone for the letting out option. They are covering their outgoings so it is costing them nothing.

You'll just need to drill down into the figures and see what's best.

Selling an asset at knock down firesale prices is not a good idea if you can avoid it. It all depends on your own particular circumstances.

Sometimes you have no choice and you just have to take the hit and walk away.

I had a lovely holiday apartment in Spain and had to sell it because of my husband's illness. I had to take a loss of £40K.

It was painful at the time. However it transpires I did the right thing because the Spanish property market has completely seized up now.

Good luck with whichever way you decide to go.

SuzieSue

kandg wrote: »

I hadn't really thought of sharers being interested as its in a quite rural location ( if that isn't a too odd a statement!!) . Useful info to speak to the EA about. The 3rd bedroom is a double and I currently use it as a dressing room so we will re arrange that. Cheers

Most EAs won't encourage the idea of sharers because if one leaves in the future it is much easier for you to find a replacement using sites such as Spareroom without using an agent.

And you'll need a shower in both bathrooms.

GDB2222

It's a really nice flat, in a nice location. However, a house/flat bought to live in is rarely a great rental proposition. You're obviously an accidental landlord, so you can't help that, but don't expect the numbers to add up so that the rent covers the mortgage, etc.

You are on the market right at the top end of the range of 3 bedroom properties in your area. There are houses available for the same money and other 3 bedders available for £450 a month, ie a third cheaper. To cap it all, yours is presented as a 2 bedroom flat.

Of course, yours is a particularly nice flat, but that does not count for much in the rental market, I'm afraid. What counts in rentals is that it needs to be near the station/place of work. That sort of practical thing.*** Close to the Peak District is way down at the bottom of most renters' priority lists.

My guess, and it's purely a guess, is that you'll need to drop the rent considerably - maybe to £500-550 - if you want to let it fairly quickly.

I have no idea what you can sell for. There's a 2 bed flat in your block on the market at offers in the region of £132.5k. You can check prices actually achieved here http://www.nethouseprices.com/index.php?con=sold_prices_street_detail&street=WILDSPUR+GROVE&locality=NEW+MILL&town=HOLMFIRTH&cCode=EW&year=All&house_style=All&house_age=All&search_radius=&outcode=HD9&incode=1JB&isSearchPostcode=1

The only recent sale was number 6, at £70k. How does that compare with yours?

Above all, you need to be realistic. If it won't sell or rent out for the figures you feel you need to achieve, that's useful information, and you can stop trying.

*** "I put my apartment on the market with a local EA about 18 months ago as I needed to move closer to work."

kandg

Again, thanks for the feedback

This morning I have contacted the EA and told them that I need a floorplan adding and asked them to contact the hospital and university to let them know it is available for any of their staff.
We had a viewing at the weekend and they loved it and are interested in renting it though they need to get a completion date on the sale of their property first......( fingers crossed)
I intend to make changes inside and get photos redone.
If I do rent it I will cover my mortgage and some of the maintenance payment, I dont expect to make a profit off it! The feedback from viewings is that it is rightly priced but people want houses rather than flats and thats something I cant do anything about.
I did look into holiday lets ....maybe I need to go back to that idea though most of them have private outside space.
The property for sale at 132k has been up for about 18 months, its quite small and doesnt have a private garage. The house in the complex has been reduced from 160k to 150k after being on privately for about 8 weeks. My apartment is bigger than the house.
You have all given me lots to think about.....!

GDB2222

I would tend to ignore how your flat compares with other properties that also aren't selling. The key point is how does your flat compare to the one that sold for £70k? That's the one that surveyors will compare with for mortgage valuation purposes.

Out of interest, what will you do if you do manage to rent your flat out?

kandg

The one that sold for 70k is 1 bed with shower room, kitchen/living room and a shared garage. Its less than half the size of mine. Its on the ground floor and overlooks the garage roof
If I dont rent it in the next few weeks I will go back to a " sell it quick" company I think or try and online EA

lessonlearned

kandg wrote: »

If I dont rent it in the next few weeks I will go back to a " sell it quick" company I think or try and online EA

Using a "sell it quick company" will mean you will have to take a massive hit.

I've been mulling your situation over whilst I went shopping in Sainsbugs. Well shopping is boring and it was good to have a problem to think about.

There might be a third way.

You say you need to move because you need to be nearer to work. I do understand this. Commuting can be hell.

However, now is not a good time to sell (as you've found out) and it seems such a shame to have to slash the price and practically give your home away before you have explored every possible option.

If you still like your home and you are happy enough there - apart from the travelling - then why not try and hang on to it - at least until the market picks up and you can get a decent price.

Now my idea for a "Third Way".

What is your job, how flexible are your employers. Can you work from home a couple of days a week to reduce travelling time.

Failing that another option to consider is - how about ståying over in a B&B or modest hotel two or three nights a week. Yes it will cost you in the short term but it's better than losing tens of thousand of pounds.

You could then work late two or three nights a week and then perhaps alter your Monday and Friday hours to make the travelling easier, say starting a bit later on Monday and finishing earler on a Friday.

A cheaper way would be to do a "Monday to Friday" stint as a lodger in someone's house. There are plenty of websites for this and it can be very cost effective.

Of course all of that depends on your job, how flexible your employers can be but more importantly how flexible and open minded you can be.

You need to think creatively about this one. Don't just settle for a "Knee-jerk" slash the price sell it quick solution. You will lose a lot of money doing this. Try to think long term and protect your investment and your financial future.

Recessions don't last forever, banks will lend again, mortgages will be easier to come by and the property market will start moving again.

All you need to do is try and ride it out.

It would be such a shame if you had to walk away with nothing or, even worse, end up still owing money to your lender for a property you don't even live in.

All your hard work and investment will be for nothing.

As I mentioned before I have been forced to take a £40K hit on a property in the past. I had no choice, I was backed up against the wall.

You're not in that position. You still have options.

Good luck with the viewers who came at the weekend. That would be a good outcome for you.

Fire_Fox

kandg wrote: »

Again, thanks for the feedback

This morning I have contacted the EA and told them that I need a floorplan adding and asked them to contact the hospital and university to let them know it is available for any of their staff.
We had a viewing at the weekend and they loved it and are interested in renting it though they need to get a completion date on the sale of their property first......( fingers crossed)
I intend to make changes inside and get photos redone.
If I do rent it I will cover my mortgage and some of the maintenance payment, I dont expect to make a profit off it! The feedback from viewings is that it is rightly priced but people want houses rather than flats and thats something I cant do anything about.
I did look into holiday lets ....maybe I need to go back to that idea though most of them have private outside space.
The property for sale at 132k has been up for about 18 months, its quite small and doesnt have a private garage. The house in the complex has been reduced from 160k to 150k after being on privately for about 8 weeks. My apartment is bigger than the house.
You have all given me lots to think about.....!

You do know you need to register for income tax? You can write off the mortgage interest and service charges so probably don't have to pay any but you still need to register and probably complete a return. As you are finding what a place will rent for does not directly relate to what your costs are.

GDB2222

kandg wrote: »

The one that sold for 70k is 1 bed with shower room, kitchen/living room and a shared garage. Its less than half the size of mine. Its on the ground floor and overlooks the garage roof
If I dont rent it in the next few weeks I will go back to a " sell it quick" company I think or try and online EA

So, the £70k price does give you some sort of a benchmark as to what yours will value up at, ie hopefully a bit more than double that price.

Sell it quick companies are hopeless for you. Whatever they say, they need to buy it cheaply enough from you that they can sell it on quickly for a profit. That means they can only pay around £100-120k, so they'll gazunder at the last minute.

One sensible strategy is the one you suggested at the outset. Put it on the market for £150k (or maybe £152k, to leave a tiny bit of wiggle room), and see if it sells. If it does, you've achieved your aim of moving near your work. If it doesn't sell, you've gained some insight into the market.

Nan_Dingle

Having disposed of my own 2-bed terrace house, I've found that the selling price is what will give the BTL LL a 5% to 7% return.

OP, you'll need to find a rental price that will attract interest, from that you could work out what capital a BTL LL would put in.

It makes sense that the mill conversions are favoured by empty-nesters/early retirees who can enjoy the location, not worry about a garden and have it maintained under the management fee.

Maybe worth trying classified ads in Country Life, Spectator, The Oldie etc?