We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
To Sell or Not to Sell. That is the Question
Options
DaffyUK
Posts: 6 Forumite
Hi All,
This is my first post on here so please be gentle!!
I currently have a 100k interest only morgage on my lease hold flat. The interest rate is now on the SVR of 2% so my monthly payments are £212. This has allowed my partner and I to save up a decentish deposit for a new home in the 300k region. My question is this: Should I sell the flat and use the estimated 25k profit to put towards my deposit on the new home. Or, keep the flat, rent it out privately in the region of £650 a month and use that income to either a. pay the mortgage on the flat or b. use the income to pay towards the mortgage on the new home. Obviously with the new Stamp Duty rules i incur an extra 8k cost in tax, so basically is it worth the hassle?
Any advice would be welcome.
This is my first post on here so please be gentle!!
I currently have a 100k interest only morgage on my lease hold flat. The interest rate is now on the SVR of 2% so my monthly payments are £212. This has allowed my partner and I to save up a decentish deposit for a new home in the 300k region. My question is this: Should I sell the flat and use the estimated 25k profit to put towards my deposit on the new home. Or, keep the flat, rent it out privately in the region of £650 a month and use that income to either a. pay the mortgage on the flat or b. use the income to pay towards the mortgage on the new home. Obviously with the new Stamp Duty rules i incur an extra 8k cost in tax, so basically is it worth the hassle?
Any advice would be welcome.
0
Comments
-
What's a decentish deposit?0
-
So about an 85% LTV mortgage to buy the new place then? I'd sell the current property and use the £45k savings, £25k proceeds from selling and the money for the 3% SDLT you wouldn't have to pay out to get a 75% LTV mortgage on the new home.
The government are taking steps to make BTL less attractive and it's a leasehold property so I don't think it's worth hanging on to as the gross rental yield is just ok, nothing special.0 -
Hi, yes thats correct, looking at 85%. I was rather hoping that a modest income from the rent would make it viable. But I suppose £4500 a year would not really have the same impact on us financially as 25k off the mortgage debt. Thanks for the advice, it is much appreciated.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.2K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.7K Spending & Discounts
- 244.2K Work, Benefits & Business
- 599.2K Mortgages, Homes & Bills
- 177K Life & Family
- 257.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards