Sell house and rent to be debt free?

AdrianC

HappyMJ wrote: »

I do not pay any income tax on the rent. Any profit I make (which is only £30 per month) is well within my annual personal allowance and if it wasn't the tax would only be £6 per month.

I hope you're not counting your rent elsewhere as an expense against your income.

If you've got a mortgage, then I hope you've got CtL.

HappyMJ

AdrianC wrote: »

I hope you're not counting your rent elsewhere as an expense against your income.

If you've got a mortgage, then I hope you've got CtL.

No that wouldn't be permitted and yes I have CtL. A Virgin One Account current account mortgage with consent to let.

Mallotum_X

Spare room? Take in a lodger and over 4K in rent is tax free. Keeps your equity safe and some extra towards the bills?

hazyjo

How many years left on your mortgage? Will you retire/will it end when you're 65? How do you plan to pay the bills when you retire? Pension? You'll prob find it much harder to find money for rent and bills when you retire rather than just bills (presuming the mortgage ends when you retire).


I would be thinking about after retirement rather than right now. Seven years will fly...


Jx

ScorpiondeRooftrouser

How much equity?

duchy

If you have a spare room the obvious solution would be to get a lodger in. My friend is a similar age to you and does just this and it is working very well. Her lodger is a man of a similar aged - divorced and a bit of a workoholic - They respect each others space and it's very amiable. It has meant she can stay in the property she loves rather than downsize to something less desirable.

If you can find someone who works different hours to you (I used to have a nurse as a lodger - we never both wanted the bathroom at the same time which was great ) so if you work 9-5 look for a shift worker -or maybe a weekday lodger who is working in your area but goes home to family at weekends etc.

It may not be ideal but taking the long view it will preserve your investment until you are ready to sell and move abroad when the equity you have could make a massive difference to your choices.

westernpromise

If you don't own the roof over your head, you aren't debt free. Instead of a mortgage, you have the cost of all the future rent you'll have to pay. That's just as much a debt as a mortgage, only worse, in that it tends to go up over time whereas a mortgage is eventually paid off.