Considering renting out my house

katskip18

Looking for advice/opinions, please. I own my house outright and my partner and I have just bought a house together on a mortgage. We have been living in my house for a good few years. The idea was to sell my house and repay the mortgage in a year, the minimum time we can have it for. My house has been on the market since last October, but has yet to sell. I'm considering renting it out for a while, as we are moving to the new place and I don't want to leave it empty for too long. We have had to pay £4800 extra stamp duty, which I will get back if I sell my house within 3 years.
The couple we are considering renting it to are looking for a long term rental, as they love the area. We would start on a 6 month trial period first, then assess things at that stage. I think they will want to rent it for longer than 2 years, but I want the option of putting it up for sale to get the extra stamp duty back, and also to repay the mortgage rather than keep having the extra expense. They will make ideal tenants, but I have to put my interests above theirs, but I also understand their point of view.
Should I insist on the 2 to 2 1/2 year rental period, then try to sell the house again? They may not want to rent the house under those terms, but I know I have to put myself first, really. Thanks in advance!

Cakeguts

Reduce the price of your house until it gets to a level where someone will pay you for it. A house is only worth what someone will pay you for it. It isn't worth what you think it is worth or the imaginary number that an estate agent gives you it is only worth what someone will give you for it.

I feel sorry for the tenants that you are considering letting your house to. They want a long term rental. We have tenants who have rented for more than 10 years. 2 to 2 and a half years is not a long term rental it is a short term rental.

Generally speaking the reason why a house doesn't sell is because the price it too high.

katskip18

Thank you for your reply. I have not done this before, hence why I am asking for advice.

G_M

Your house is over-valued. Price it right and it will sell.

Do you understand what is involved in letting? Make sure you fully understand before deciding to go ahead.

This will get you started:



** Tenancies in Eng/Wales: Guides for landlords and tenants This thread is intended to provide information to both landlords and tenants relating to Assured Shorthold Tenancies (ASTs) in England and Wales.

Topics covered:

* Repairing Obligations: the law, common misconceptions, reporting/enforcing, retaliatory eviction & the new tenant protection (2015)

* Deposits: payment, protection and return

* Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?

* Rent increases: when & how can rent be increased?

* Repossession: what if a LL's mortgage lender repossesses the property?

* New landlords: advice, information & links

* Letting agents: how should a landlord select or sack?

AnotherJoe

katskip18 wrote: »

The couple we are considering renting it to are looking for a long term rental, as they love the area. We would start on a 6 month trial period first, then assess things at that stage. I think they will want to rent it for longer than 2 years, but I want the option of putting it up for sale to get the extra stamp duty back, and also to repay the mortgage rather than keep having the extra expense. They will make ideal tenants, but I have to put my interests above theirs, but I also understand their point of view.
Should I insist on the 2 to 2 1/2 year rental period, then try to sell the house again? They may not want to rent the house under those terms, but I know I have to put myself first, really. Thanks in advance!

No, because they might not move out on time in which case you'd lose out on getting the SDLT returned. You've simply assumed you'll tell them to go and they will. They could in theory hang on for up to 40 weeks and cost you a lot of money in court and bailiff fees. And why shouldn't they given your planned duplicity ?

Do not let it out, lower your price to a realistic one (if its been on since October without nay buyers you are asking too much money) and save yourself a lot of hassle and risk. You dont even have any assurance that in 2 years time you'd get more for the house than now, or what you think its worth now, how do you know you wont get less.