renting my house

flying_v

Hi

Ok here's my situation. I currently owe £20k approx on a mortage. I'm considering renting my property out and renting another place with my partner.

I know there are managed lettings services and was considering using my estate agent to sort this out for me. My only concerns are my lease which i know i should check to see if this is possible and my mortgage as I may have to pay a fee? I'm not too keen on selling my house at this stage as I want to stay on the property ladder, and I get the impression it will be easier to arrange this rental than go through the selling process.

Any thoughts, warnings? Thanks for reading..

beingjdc

Well, the main warning other is that you'll have to pay tax on the rent, which you won't get back on the place you rent, and you'll have two lots of friction cost to pay. What percentage of the total value is 20k? How much would that make in the bank if you did sell up ready to buy again later?

flying_v

Ok thanks. Total property value was £178,000 a couple of years ago so about 11%? Not sure how much i could get if all that was in a savings account?

beingjdc

flying_v wrote: »

Ok thanks. Total property value was £178,000 a couple of years ago so about 11%? Not sure how much i could get if all that was in a savings account?

Depends what tax rate you pay. 6% isn't unusual for a savings account so ((178-20)*60/)12= £790 a month, £615 at basic rate tax.