what to do in my position?

ttaylor

Hey all,
I'm a single bloke of 36. I currently live at the parents. I own one flat which is let out and managed myself. The tenant has been there 2 years or so and wants to stay.
My property is worth around 220,000 with a mortgage of 115,000. I have about 12,000 in the bank. The rent is 750 a month on an interest only mortgage of 245 a month.
I originally let the property out as I didn't especially want to live there but thought it was worth hanging on to as an investment as I don't pay into a pension.
I thought by now I would have bought another property which I could live in but this hasn't happened, due to things like stamp duty on additional properties, mortgage fees etc which has put me off. Also I have a lot of money loaned to friends/family so I don't have the capital right now to get enough deposit for a second property.
So I am unsure what action to take:
-leave things as they are but be stuck at the parents at my age
-rent a flat myself which doesn't make much sense when I already own one
-sell my flat to another landlord if I can find one
-evict my tenant and move back in my flat (not sure how she will take to this and may not be as easy as a 2 month notice)
Any advice on what to do?

BrassicWoman

ttaylor wrote: »

Also I have a lot of money loaned to friends/family so I don't have the capital right now to get enough deposit for a second property.

I'd get that repaid and then decide.

ttaylor

Its being repaid monthly /weekly but will take a few years so i cant wait that long really

Jenniefour

Another option - cut down drastically on expenditure and start saving like mad to buy yourself somewhere to live, to add to your £12k. I assume you're working, yes? And resolve never to sabotage yourself again by lending money to anyone when you have plans of your own that you need your money for.

Mickygg

Build up your savings more before doing anything. Try to get debts repaid from family/friends quicker.

Do you work? Why is pension not an option? i would always recommend a pension.

saajan_12

ttaylor wrote: »

Hey all,
I'm a single bloke of 36. I currently live at the parents. I own one flat which is let out and managed myself. The tenant has been there 2 years or so and wants to stay.
My property is worth around 220,000 with a mortgage of 115,000. I have about 12,000 in the bank. The rent is 750 a month on an interest only mortgage of 245 a month.
I originally let the property out as I didn't especially want to live there but thought it was worth hanging on to as an investment as I don't pay into a pension.
I thought by now I would have bought another property which I could live in but this hasn't happened, due to things like stamp duty on additional properties, mortgage fees etc which has put me off. Also I have a lot of money loaned to friends/family so I don't have the capital right now to get enough deposit for a second property.
So I am unsure what action to take:
-leave things as they are but be stuck at the parents at my age- do you pay rent to parents? If not, you're taking in ~£300 from the rent (after tax, other expenses) + salary with little expenses so could build savings fast, and put together a deposit. Then when you're ready to buy, remortgage the current BTL to release some equity.
-rent a flat myself which doesn't make much sense when I already own one - this is tax inefficient, and a 'worst of both worlds' as you end up dealing with issues on two properties, having to deal with your LL / tenant. However can work as a short term trial of where you want to live before buying in an area.
-sell my flat to another landlord if I can find one -
yes, though this restricts the market, so you may get a lower price.
You could also evict the tenant and then sell to an owner occupier.

-evict my tenant and move back in my flat (not sure how she will take to this and may not be as easy as a 2 month notice) Assuming you've done everything correctly (e.g.
deposit protected, there's a whole checklist) then you can serve a Section 21 notice giving 2 calendar months notice (expiring after fixed term ended) of your Intention to evict. Then you apply to court for a possession order, wait for that to expire, apply for bailiffs and they evict the tenant.
Any advice on what to do?

Advice on your ideas in red above. Depends on what you want really..

hazyjo

If I had a tenant I didn't trust and thought they would be difficult when it came to eviction, I would be starting the eviction process now! You'll more than likely take a substantial cut if selling with the tenant - and she doesn't sound worth it to me!


Are you getting interest on the money people borrowed? If not, why lend it over a long period of time?


You seem too generous and kind for your own good A lovely trait, but not when it means you get taken advantage of.

Pixie5740

I'm getting a sense of deja vu. There seem to be a number of 36 year old posters who still live at home with their parents, who have loaned considerable sums of money to family and friends, and let a property that they don't want to live in for £750 pcm.

https://forums.moneysavingexpert.com/discussion/5716854

https://forums.moneysavingexpert.com/discussion/5616836

https://forums.moneysavingexpert.com/discussion/5507418

lisyloo

not sure how she will take to this and may not be as easy as a 2 month notice

Do you have any particular reason to think she'll be difficult?
Have you actually discussed it with her.

We were given notice on a flat and found somewhere else within 2 days.
We do live in London and don't have kids/furniture and are willing to pay market price, but nevertheless it shows it can be done and it sounds like she's single.

ttaylor

I believe shes single but with two kids and furniture plus paying low-ish rent and working part time she would struggle to find somewhere else in this area. I think ill try and sell to a buy to let wannabee i think theres still some out there who want an income.

Red-Squirrel_2

36 and living at home when you don't need to? Madness.

Get the tenant evicted, go and live in the one home you own, that's what most people do!

If you don't like living there after a bit, sell it and buy somewhere else. Again, that's what most people do when they want to move.