Buying residential property, can I keep buy to let?

Ojb

Had an AST signed for the first year but not done anything since so i believe it's now a SPT.
Any way does any one have any views of keeping the flat is a good idea as an alternative pension?
I've heard people say before not to sell your assets.

PersianCatLady

Ojb wrote: »

Ok well I have a full time job with income between 25-33k a year. The buy to let flat is worth 210k with a mortgage of 83k. I am looking to buy a house between 200-250k.
I though eviction is 2 months?

Either you are a wind-up merchant or you are inb for a very big shock when your tenant drags out the eviction process.

PersianCatLady

Ojb wrote: »

Surely most evictions don't take this long, most people are decent and will honour the 2 months notice?

Stop it, you are making me laugh so much my sides are splitting!!

PersianCatLady

OP - Seriously now I have a question for you.

Do you know who can legally end a tenancy? (There are two answers)

Pixie5740

Ojb wrote: »

Had an AST signed for the first year but not done anything since so i believe it's now a SPT.
Any way does any one have any views of keeping the flat is a good idea as an alternative pension?
I've heard people say before not to sell your assets.

You answered your own question in your OP. You cannot afford to keep the flat and buy your new home because you don't have enough money for the SDLT and you need the equity in the rental property but are having issues releasing equity by remortgaging.

Ojb wrote: »

After moving back home for a few years and letting my flat I now want to buy a small freehold house to live in

My tenant doesn't want to move but I'm finding it impossible to sell to an investor in the current market. So if I sell she will have to go.
I have no pension plan and had thought the flat could replace that.

However I am finding it difficult to refinance the flat in order to release the equity to buy the house. I would also have to find the 3% stamp tax

So based on the above should I try and keep the flat or sell it, no longer be a landlord and have much more equity in the house I intend to buy?

This point was then reiterated by 00ec25.

00ec25 wrote: »

since you give no meaningful indication of your financial standing, other than you are finding it "difficult to refinance the flat" and find 3% SDLT then it strongly suggests you are not cut out to be a LL as you have no idea how to business plan or set a budget.

there is a huge difference to being a LL with a 10K income and one with a 100K income, where are you on that scale?

If you have to sell the flat to finance the purchase of your next property then you will have to sell it.

Why do you not have a pension? Do you think a single BTL is a suitable retirement plan because it sounds like putting all your eggs in one basket to me but it's really a moot point since you need to sell the flat to get your money out of it.

Who are these people you've heard say not to sell your assets?

HampshireH

If you cannot afford to buy then you will need to sell in order to have the money to do so. Surely thats basic math?

No point in having your "pension" tied up in a property if you are putting yourself into more debt to have somewhere to live. I.e. better off paying off your house now than having a high mortgage later in life and a property someone else is living trapping 10s of thousand with no quick release of the funds to put food on your plate.

All of this of course depends on your age, your direction in life, whether you intend you intend to get a pension etc

You seem to have paid off a fair chunk of your flat so why not take the equity put it towards your house and then put all the other cash you are paying out to in management fees/service charges/agency fees/maintenance/compliance/landlords obligations/eviction (whichevrr of the above are applicable) into another type of investment/savings/pension.

kingstreet

Ojb wrote: »

However I am finding it difficult to refinance the flat in order to release the equity to buy the house

What is the problem and how do you know?

Crashy_Time

Ojb wrote: »

Surely most evictions don't take this long, most people are decent and will honour the 2 months notice?

Of course they will, that is not your main problem, treating property as a pension could be your main mistake IMO.

Smi1er

Ojb wrote: »

Ok well I have a full time job with income between 25-33k a year. The buy to let flat is worth 210k with a mortgage of 83k. I am looking to buy a house between 200-250k.
I though eviction is 2 months?

I'd be taking that £125K equity and sinking it into buying a nicer home. All very well having a BTL but a bit pointless IMHO if you don't have a nice home.

Sound your tenant out about moving, if claiming benefit then they will probably need to be evicted.

Crashy_Time

Ojb wrote: »

Ok well I have a full time job with income between 25-33k a year. The buy to let flat is worth 210k with a mortgage of 83k. I am looking to buy a house between 200-250k.
I though eviction is 2 months?

I thought you were finding it impossible to sell?