Selling to rent, a bad move?

AdrianC

FaceHead said:

The cost of a repayment mortgage and rental cost aren't directly comparable as you get something quite different from each. 

You get... accommodation.

You have a finite budget - the same proportion of that goes to putting a roof over your head.

Yes, long-term, there can be differences. But, as the OP has found with this s/o property, that is a long way from guaranteed...

Crashy_Time

eamyers said:

Thanks Numbercruncher unfortunately we have to sell our flat for what the rics surveyor values it at, no more or less which is another huge downside of s/o. 

It’s a small flat yes, we can make it work but then the thought of a garden and 3 bedrooms and the ability to save 300 a month seems like a great idea on face value, but totally appreciate timings and this is one of my concerns. Also, unfortunately we don’t have any family that could house us. 

Seems like whatever we do we’re stuck! I know we’re lucky to be on the property ladder but I don’t feel too hopeful about ever getting out of here!

Not sure I agree with that, you seem to have overpaid for part ownership of an unsuitable property and think you might struggle to sell and move on? S/O was never designed to help you, it was designed to help property developers sell overpriced property.

MovingForwards

Renting is hard after being in your own home, do you want to give up that stability to move somewhere you might get 6 months in, maybe a bit longer.

Children do share bedrooms, it's been that way for years and perhaps only the 'lucky' ones didn't have to as the parents did have that bigger property.

Of that £300pm you will be saving, how much will then go on the commute costs for your OH?
How much of his time will be spent commuting? Although his time isn't paid for, where he works now means he's got minimal commute and more free time for the family.

If you are already unable to account for where your income is going, it's even easier to 'lose' £300 each month.

First of all start writing down everything you spend your money on, find out where it's going.
Then after a few months you will have a clear picture and see what options are available.

eamyers

Thanks, lots to think about. I’m worried about staying here as they’re continuing to build more flats and the lack of space concerns me too. I know that sharing a bedroom is of course reasonable but we do have very little storage space, our kitchen has one work top etc etc. Renting seems in the short term seems to me our best option for the garden alone(!) but I also take on board that we have/ or will have equity one day, maybe?!
I know that some people benefit from s/o but right now I see no advantages whatsoever!

eamyers

With regards to commune costs it would be an increase in petrol but that’s if my husband stays where he is, his job allows him to move if he needs too, he has the qualifications too

MovingForwards

There was very little storage and only one worktop when you moved in, so nothing has physically changed with the property. 

Can you scale down possessions, tuck things on top of wardrobes and look at space saving ideas?

Although, it sounds like you've made up your mind anyway, so start saving for one month's rent and the same again for the deposit, plus extra to cover any potential shortfall to pay the solicitors, EA and HA. 

yllop1101

Are you able to get permission to rent your place out, say for a year or so? Would that cover the costs of the mortgage? It may be an option, in the hope prices go up in that time, and it frees you up to rent somewhere bigger. 

Crashy_Time

MovingForwards said:

Renting is hard after being in your own home, do you want to give up that stability to move somewhere you might get 6 months in, maybe a bit longer.

Children do share bedrooms, it's been that way for years and perhaps only the 'lucky' ones didn't have to as the parents did have that bigger property.

Of that £300pm you will be saving, how much will then go on the commute costs for your OH?
How much of his time will be spent commuting? Although his time isn't paid for, where he works now means he's got minimal commute and more free time for the family.

If you are already unable to account for where your income is going, it's even easier to 'lose' £300 each month.

First of all start writing down everything you spend your money on, find out where it's going.
Then after a few months you will have a clear picture and see what options are available.

Why would they only get six months in their rental property?

MovingForwards

@Crashy_Time perhaps the LL wants to sell the property or any other number of reasons.

It's fine for you to tell buyers there's a recession, they are paying too much for a property and any other negatives, but it's not ok for me to point out a potential negative to renting so OP is aware it may not be all 3 bedroom house, garden and sunshine.

You've been around long enough now to not play silly games, counteract my comment with saying they may get a long rental like you have, it saves derailing yet another thread.

Angela_D_3

My cousin was in rented for 3 years and had to move every 6 months.  The game some LL’s like to plsy with single parents or those on fixed incomes is to move them into a place with reasonable ish or even below market rent. Then put it up £200 a month when they’ve decorated,  recarpeted,  settled in.  

Or of course sell it