New job - Advice on what to do with existing property

robbie1990

Hi All,


Probably best outlining some background info (will help in answering the question)


Bought my first house 18 months ago on an initial 2 year discounted variable mortgage, 3% ERC if mortgage is redeemed within first 2 years.


Recently got a new job where I will need to be moving, but I'm not sure what to do with my property at home. Work will provide me with rented accommodation for up to 12 months whilst existing property is dealt with.


If possible I'd like to keep hold of my house and here are my potential options:


1. I just sell the house and buy another in new location.
2. I have approximately 17% equity in existing property, most attractive BTL deals do not happen until 25% equity is achieved. One option is me and a friend will joint ownership of my existing house (12.5% each) and rent the property out. The intention would then be for me to save up and purchase a house in the new location. Having a BTL property in my existing location would that have an effect on the amount I can borrow to purchase a house in the new location ?


Apologies for the long winded message.


Any advice would be appreciated

need_an_answer

How far away are you moving from the property?

Do you want to become a distant LL and employ an agency to manage your property?

Are you likely to want to return to the property full time?

How does rental income stack up verses mortgage outgoings ?

consent to let ?

Have you enough funds to deal with void periods where you need to cover costs in the absence of a tenant?

freehold or leasehold,leasehold will make you responsible for management charges so another outgoing to consider

Renting out may seem a good idea but if you don't really have the means behind you to support what could become an expensive mistake then your best option is to sell and take advantage of the option to rent for 12 months in your new job location.