When to sell - Fixed Mortgage 7 months left

Veeo

Hi all,

Please I am hoping some of your lovely people will give me some helpful advice.

I have 7 months (June 2017) left until the end of my fixed term mortgage. I am thinking of moving from my house into a rented property on the other side of the country due to work. So the plan is to rent my current house out (minimum let is 6 months) and sell it then buy another one where I move to. I wouldn't like to sell with a sitting tenant because it limits buyers.

So my question is when is the best time to put my house on the market? I was thinking maybe 3 months before the end my fixed mortgage as I believe it takes on average 3-4 months to sell a house.

Tia xxx

morwok

Well our flat was sold in august and the chain is still not ready and it is moving into January now!

3-4 months would be average timescales but it depends if you are prepared to stay longer than June if things get delayed but you can always be up front with buyers about your timescales and list earlier?

Ozzuk

It really depends on price/area/demand - you could get offers quickly in which case the sale process could take 2-4 months (average) or the house could be on the market for months.

You could also have nightmare tenants that don't pay/wreck the property/refuse to move out. You will find it very difficult to sell unless vacant possession and the tenants could cause issues with viewings. And of course your mortgage company will need to agree.

I'd find out exactly what penalty would be payable and work out if it is worth the hassle. Say it costs you 2k to close the mortgage early, are you likely to make that in rent profit (after tax).

AnotherJoe

I'm not sure I understand your plans. Are you looking to let it out almost immediately ? So there would be just one set of tenants for 6 months ? That's going to be a lot of hassle for very little overall return once you factor in costs, plus you'll still have trouble selling it until the tenants have left because not everyone will want to look at a property with sitting tenants.

Indeed just the fact they are there could easily depress the price by the few thousand you might take in rent. Then you've got tax, and risk. Suppose they are awkward about viewings, or moving out date, or worst, nightmare tenants?

I suggest you put your house on the market now and make sure people know you aren't looking to move until June. For many buyers that won't be a problem, for some it could be a benefit.

AdrianC

It takes about 3-4 months for the purchase to go from accepted offer to completion. You have to find somebody to buy it first. That might be a couple of days or it might be a couple of years, depending on the price, the location and your attitude.

So you get a tenant on a 6mo AST. Great. Will you be telling them upfront that the tenancy is exactly six months, not a day longer? Will you find a tenant to move in on day 1? What happens if/when the tenant decides not to leave at the end of the tenancy?

Or, to put it another way, what's the early repayment fee for the mortgage...? Can it be ported to your new property?

marksoton

Veeo wrote: »

Hi all,

Please I am hoping some of your lovely people will give me some helpful advice.

I have 7 months (June 2017) left until the end of my fixed term mortgage. I am thinking of moving from my house into a rented property on the other side of the country due to work. So the plan is to rent my current house out (minimum let is 6 months) and sell it then buy another one where I move to. I wouldn't like to sell with a sitting tenant because it limits buyers.

So my question is when is the best time to put my house on the market? I was thinking maybe 3 months before the end my fixed mortgage as I believe it takes on average 3-4 months to sell a house.

Tia xxx

Absolutely crazy plan.

Dird

AdrianC wrote: »

Will you be telling them upfront that the tenancy is exactly six months, not a day longer?

And that he expects them to show potential buyers around 3-4 months after they move in. This guy is asking to make an appearence on Can't Pay We'll Take It Away/The Sheriffs Are Coming

KRB2725

I can't see anyone willing to rent your home on the terms you are suggesting. Moving is inconvenient & expensive and they would know from the outset that they would only be there for 6 months, 3 months of which you would be expecting them to allow access for viewings.

If anyone was willing to take it on, I would be very wary about their intention of moving out when you wanted them to.

If you are even considering this, I suggest you read up on becoming a landlord and how much time it can take to remove a tenant should they decide not to leave.

Veeo

Thanks all. So I will try and explain this better.

I currently live in my own home in Somerset but just got a job in London so looking at moving out there before the end of the year. I can’t afford to rent a flat in London and continue paying my mortgage all at the same time, so I thought why not let it out.
Spoke to my bank and they said all I need to do is sign the “permission to let” document and then I can let my house out.
But I would also let to sell my house at the end of the fixed term (June 2017) in other to be able to buy in London. This then means I can only rent the house for 6months.
Spoke to an estate agent and she said they usual get people looking for short-term let when they are trying to get out of a chain so it is likely I will get someone willing to let me house.
So this is where my question comes in, if I am able to get someone to rent the house from Jan, when do I put the house on the market to sell with the intention of completing at in June?

marksoton

:doh:.........................

Veeo

marksoton wrote: »

:doh:.........................

Thanks for your helpful comments