ATB'S Frugal Foray to Freedom

greent · 20 December 2017 at 9:20PM

I'd personally go for the latter option.

Option a = no costs, 10k realised at end

Option b = 2k + mtge/ c tx costs, 45k realised at end

Unless mtge and council tax costs = 30k I'd favour option b. Would also guess sale costs would be higher (based on %age of sale price)

Can you reclaim any of the wear and tear costs from the tenants if above what is deemed 'fair wear and tear'?
x

hiddenshadow · 20 December 2017 at 10:13PM

I'd also vote for option B - 6 months (ish) isn't that long as far as waiting to sell, and 30k+ is pretty big incentive.

Depending on how big the mortgage/council tax payments are, you can also drop the price to sell quicker. Price for 45k equity initially, and drop by X amount every couple of months until it sells. Presumably in the meantime tenants are covering part of mortgage payment, at least?

atypicalblonde · 20 December 2017 at 10:49PM

Thanks guys. Yes the mortgage is currently covered by the rent so no issues there. We could certainly try and recover some of the funds to put right the wear and tear from them, but I suppose how amenable they will be to that given that we are wanting them out would be anyone's guess!

I'm a bit puzzled and cross with myself as to why I didn't think of selling it before - I guess that I never thought DH would be on board so put it out of my mind completely.

Have just checked properly and the lease doesn't expire until September. Which gives us ample time to stash some cash for doing the work, & covering the mortgage whilst doing so. So an autumn / winter project for us beckons it seems! :T

HS - we would do exactly that, drop the price as required. I would have been delighted with £30k, so the suggestion of £45k is amazing!

Thanks again for your input I really do appreciate it. Only DH and my MFW friends know of this idea, keeping :lipsrseal from our nosy families for now!

Jessy103 · 21 December 2017 at 10:26AM

Good luck with saving, sprucing up and selling the rental! Hope you have a great Christmas and New Year! x

hiddenshadow · 21 December 2017 at 1:20PM

We had a similar debate with our house - we could hypothetically sell now with a tenant in place, but would potentially have to pay our lettings agent ~5k (very much do not wish to do this!), and lose out on up to 20k equity by selling as a BTL rather than a personal home. We may live to regret our decision (esp. if the exchange rate tanks in the meantime, lowering the value of our equity), but we've decided to wait until our tenants' lease is up (August 2018) to sell. We're hoping it won't take too long to sell and we'll be done and have lots of cash to roll around in. :rotfl:

atypicalblonde · 22 December 2017 at 10:56AM

Morning all,

I expect this will be our last update for the year, so here goes with some figures:

Starting balance at 1.1.17 - £137,510.72
Balance as at today's date 22.12.17 - £115,000
Total reduction this year - £22,510.72
Average monthly OP - £1,875

I am pleased with what we have achieved, although still too far away from five figures for my liking, I am loathe to use our remaining savings mine to inch us closer as we are now decided that we will sell the rental house this time next year. That money is therefore going to stay where it is for now to form the start of the 'spruce up the house to flog it' pot

Massive thanks to every single one of you who takes the time to read my drivel, it really does help to spur me on, encourage me and generally give me a boost through those inevitable dips in the rollercoaster that is a MFW journey.

Wishing you all a very very Merry Christmas and a peaceful and MFW style new year :T:T