House selling or renting?

misssaver12

Hi,

I am looking for a sounding board as my head is spinning about what is the best option to do.

I got married in the summer and moved into hubby's house, we rented out my place earlier in the year and got an agency in ( which ended up costing a bit. Lesson learnt). All was reasonably well until Christmas when one of the tenant did not pay and I had to chase up payment and they finally did. They decided to hand in their notice to leave at the end of march ( end of contract ) The agents underpriced the house so I know that rental could go up and as it's in a great location, near Heathrow airport but I am wary of using agents to get a hefty bill back, I struggle to find time to show tenants ( we live some way away) and hubby has talked about buying a place near
the sea closer to my parents,if we sell up we could purchase a place there and have a place to use as a place to relax.
Worries are that I have to now pay the mortgage once the tenants
are out, even if we sell and would rather the house was not empty. If I aim to get tenants they could be there only a short time and what assurances do I have over the state the house is left, without
paying out agents to find tenants.
Confusion is sell or Rent out long term again.what's best option especially with saving money...

Any suggestions would be appreciated. This is my first house so I suppose there is some emotion with it, but I don't see myself living there again.it's currently pretty empty, needs some fences fixed in the storm.
Selling will give me a healthy profit and houses sell well in the area
I am told... But how long could the time I have the mortgage to pay?

Much thanks

Annisele

It doesn't sound like you actually want to let the house. So, if you can sell it now, I think you should.

Kynthia

Don't put tenants in if you're putting it up for sale. They don't have to allow viewings, they don't have to keep it tidy, they don't have to leave without you getting possession through the courts, buyers don't like properties with tenants, etc.

sandsni

Once tenants are in they do not have to leave until you go through the legal eviction process (even if there is a fixed-term contract or whatever). So if you got tenants who know their rights you could be stuck with them for months beyond their contract.


If you don't want to be a LL, and I don't blame you, then you would probably be better off selling asap, even if it means an empty house for a few months.

Blue264

I'm watching this interest as I'm a very similar predicament. Do you have friends nagging you to let your house so that you have an income from it?

G_M

Either sell it or let it. Don't try to do both.

Read:

[FONT=&quot]Letting Agents [/FONT][FONT=&quot](Tips for selecting, and tips for sacking them)[/FONT]

[FONT=&quot]New Landlords[/FONT][FONT=&quot] (information for new or prospective landlords)[/FONT]
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misssaver12

Thanks for information so far. Worried if I sell I have lost a long term investment income as well but I plan to buy another property and enjoy doing them up.

A agent called this morning and went through everything with me, even showing that I can sell with a fix fee rather than the 1-2percent quoted by local agents. He is coming to look at the house this week, take pictures and have it on line by the end of the week for an open day the following week. His current estimate is more than I expected and will put me in excellent postion to buy without or with a smaller mortgage a place further from London. He seemed to feel with the way the property Market was going at this time that the house would sell quickly as there was nothing on the Market in the area and 3 previous properties around the corner sold in a few weeks for the marketing price he suggested for my place. But if I left it later into April there is more properties coming up for sale.

Tenants current in the house did not seem to concern him as long as there was a leaving date.

Still a little niggle inside that I am selling and losing an investment property but weighting that up with reducing my mortgage to almost minimum if not at all and getting another property without all the hassles of the tenants , having to get things fix and those costs especially when I will be living a considerable distance away.

misssaver12

Blue264 wrote: »

I'm watching this interest as I'm a very similar predicament. Do you have friends nagging you to let your house so that you have an income from it?

Not really, I am still working on my friends to make them more money savvy.

I have people interested in renting it once the tenants move but underneath and prompted to think about it I realise that selling is a better option, I am a country born girl and living in a busy populated town is not my ideal. I worked hard over the years to sort out the debt issues and live more money savvy I wonder if I am selling out on an investment for the future or saving myself stress and hassle..

Blue264

Precisely what I'm thinking.
My mortgage is less that 40% of the value of the house, and I'm very aware that I could rent it out and pay off the mortgage in 7years. But, it's 240 miles away from where I'm now living. Do I really need the hassle? I think not.

But my OH and all my friends say that I would make a bigger percentage profit on my investment from renting than from any savings options at the moment if did sell and invest. They do have a point.

misssaver12

The thing that is swaying me the most at the current time is weighting up the paying off my mortgage with several factors. As i have been out of the property just under the year then i have 6 months before capital gains tax comes in which i would have to pay or move back into the house - can i see myself doing that? not really
Also at the current time my mortgage repayments are at a low level but if the interest rates rise then so with the repayments and i could get to a position where the rent does not cover the mortgage - for a few years i could do well with the overpaying but also need to declare the extra money to be taxed as revenue.

There is also the growing things to be done in the house, when i was there I would tackle them straight away but the tenants seem to leave them until they need to be replaced rather than mended. ( fences which blew down in the storm - could have been taken down and replaced when over but have been left to become battered and smashed.)
If I sell we can pay off the mortgage on the current property and also have a very good deposit to put on another place, then we can sell later on the other property and pay off the mortgage, therefore being mortgage free...or we can keep a property on renting it which although with give us a sum at the end - whose to say the property will hold or increase its value ?

I just worry that i am selling out early and losing the rental potential.

Blue264

Thank you!

You've made some excellent points there, and raised issues that I'll need to look into further. I'm going to run this by my OH this weekend and, hopefully, come to a decision.

I'm very impressed with your idea on the fencing. It would never have crossed my mind, and I refenced the garden a few months ago.