Pay off mortgage and start having even more fun 😁

newgirly

We don’t seem to get much anywhere near on olio when we I’ve looked nearby Vix. GP, there were sprouts at the time too but you can have too many sprouts 😆 
Daisy, there’s not much heat to lose and to be honest the top floor seems to a do it’s own thing heat wise, the radiator (if it’s on) doesn’t do much hence I’ve bought the fan heater for when I get dressed. I just love being snuggled up but with cold air, the window is only open a little mind, im not crazy 😬

Well year’s eve was disappointing, I don’t like it much usually so no change there really, went to bed early with a tummy ache 🤣 saw ds2 and dil on New Year’s Day evening which was great. I’m a bit stressed out with family fallouts between some of the kids still ☹️ we have not taken sides and tried to help only when asked but it’s not improved, very difficult to not be upset about it, especially when it’s this time of year. 

Anyway, I need to give myself a slap around the chops and perk up for new year!  I’ve been trying to make a 2026 budget and it’s pretty impossible, I don’t know if all the kids will now be coming on holiday - that could mean a big drop in costs (and happiness😩) but conversely that flipping factory has not rented out still and come March we have to start paying business rates which will quickly tip us into an empty business account and then using the offset and therefore not really being mortgage free anymore 😕 it’s now 10k a year less than the two agents valued it at per year, we did another price drop in December to what one of the neighbours has been paying for a while now. 

It’s valued at maybe £500k ish I think they said last year ( but then their rental value has shown to be too high…) it’s currently up at £38k with a view to getting £36k unless we drop again. With a longer lease say 5 years  it’s usual to have a 6-9month rent free period, it’s the opposite to residential rentals where they are responsible for repairs to the building, upkeep etc. Obviously if we sell we take a big hit on tax - it’s in a ltd company. Also we will have to pay dad back 20k gave is to help pay the mortgage off in lockdown (he only wants it back if we sell, he basically doesnt ever really agree with selling). 

So it’s been advertised for ten months now, four months of those with it empty and freshly redecorated, we paid £220k I think for it in maybe 2013/14 ish so a huge jump in that time. This is a lot of detail I perhaps shouldn’t be putting on here, but honestly I feel like getting financial advice is probaly sensible and needed but then it will only be financial advice. I kind of feel like I need overall life, happiness and financial advice if that makes sense 🤣 
I don’t want us to blow everything that’s taken years for dh to achieve, but also he wants to retire early and we have a relatively small pension pot of £130k ish between us. The factory was going to be the pension (and it goes without saying something to pass into the kids), but after such a long time advertising it’s making me think it’s just too risky without a massive back up savings pot to fall back on which would take years to save. Also I’m yearning for do some longer travel trips sooner rather than when we are older just incase really. I think then heart surgery has changed my view on longer term planning really, even if it’s silly, I’ve been told I’m fine. 

So any thoughts on this would be appreciated really, it’s not my decision I see it more as dh’s one but weighing up the pros and cons is hard and it’s a really privileged place to end up in, it’s not something we would have ever had unless the business failed and we needed being forced to buy it and rent out to enable the new people to take over and keep it going - for a bit anyway 🤣 

Anyway, apologies for all the waffle and Happy new year 😊

MFWannabe

Are you able to put the unit up for sale as well as rent? Then whichever happens is fate? 

If this isn’t an option I’d be tempted to put it up for sale after this amount of time trying to rent it. 

To me I’d rather be financially personally stable, mortgage free and savings than have the stress x 

beanielou

Another vote to sell if you can & just get rid. 

Bargainhunter30

I'd say you'd get a decent amount of returns from investing the profit into index funds/pensions and none of the stress. You could invest some of the sale money into pensions and get 25% back, which would offset some of the capital gains.

Is it worth keeping it, if the factory is only going to be an inheritance, you don't really get a chance to enjoy the money and all your hard work? If you sell, you could take some nice holidays, have a travel budget without feeling guilty. My dad never got to travel due to early onset heart problems, so I get your concern. Remember the kids will hopefully have your house as an inheritance and maybe your parents?

South_coast

I think the other thing to take into account is that there will be other void periods in the coming decades and how these would impact on you 🤔?

TallGirl

If it’s not easy to rent as it is could it be split and rent that way? Obviously more tenants and potentially more hassle. I would be tempted to sell for an easy life. I would not worry about inheritance the kids will get the house. They might struggle to agree if they wish to sell or not doctor could be passing that headache on. 

greent

Haven't looked back since selling our (residential) investment property - so much less hassle. Appreciate its not the same as a commercial property, but I like the simplicity not having it brought us (even with the CGT hit for us both)

daisy_1571

been discussing with Mr d who came up with an interesting angle - your dad likes to hold property (and we can see the principle behind that as its an asset long term but its also a headache long term and can deplete your other assets) so would he be interested in buying it ?  If its worth £500k offer it to him for £450k.  I know he's not in the first flush of youth any more but if he doesn't grab it then he has no call in the future to say anything to you about you selling being the wrong choice.

I think you've had some great advice above.  Lots to think about.  I like the idea of advertising as sale and rent and see what bites first but you would need the facts first.

I'd say you need to talk to a business advisor or financial adviser as how it works.  Things owned by a company is beyond my experience but it sounds like winding up the company.  Selling assets, paying debts then how the rest is taxed is definitely something you both need up to date expert advice.   It could be that transferring funds into pension will actually make the decision very easy as per bargainhunter's useful knowledge. 

I'd agree there's no point keeping it as inheritance as there's 3 children and they might all have different ideas what they want to do.  Plus you both could live another 45 years, the children could probably do with a bit help now, not when they are becoming pensioners themselves. 

Bearing in mind how dh is with 'business cash' do you think he would genuinely be distributing large wedges of cash for holidays/pension income if it does get rented out or is he more likely to continue keeping the rent in the business accounts to cover future voids and costs?  You don't need to answer that on here, just something to ponder.  Its a hard mindset to get out of when all your life you've kept the money in for business costs.  Plus even if someone comes to see it tomorrow they likely won't be taking it on till march or even new financial year then if you have to give them 6 to 9 months free (!!!!!!? seriously ?  Wow that's amazing that new renter would get that amount of time free) you are looking at almost a year before you start actually start getting money in.


Its a shame dh went straight into a new job, it would be good to have had a couple of weeks or even months off together now properly looking at different options and exploring tax consequences etc with various professional advisors and accountants.

Lastly, any cgt is on the profit, yes it reduces what you will receive but like tax and ni out your paypacket, you are still left with the balance.   Same with the £20k to your dad, you've had the use of it when it counted and it will come out the profit (hopefully there's a proper mortgage paperwork to prove its a liability to be repaid before tax).  So I wouldn't get hung up on having to pay these things being a reason not to sell.

I agree it will continue to be a headache for years to come.  If you rent it and dh 'retires' then 6 weeks later the renter's business fails and you are left with an empty building again it won't be much of a pension scheme. 

Lots to think about and you both need a couple of serious talks with actual facts so you have concrete stuff to work with rather than you having it rattling around your head all the time.

Good luck with it all

Dxxx

newgirly

Thank you so much to everyone for responding, I really appreciate it 🙂

Theres so much to think about and we definitely need proper advice, but I don’t think dh is in a place yet where he’s ready to think about selling, I guess I’m trying to sew the seed that it could be a sensible option. Very much doubt my dad would be interested now and not sure he’s in a position to as everything is usually tied in in other properties. I will however see what dh thinks of this - I’m sure it would irritate him though 🤣

I think the idea of selling and renting at the same time would be ideal , however I don’t know if this will put off possible tenants to see it also up for sale, I’d have to see what the agents think. Sadly for commercial it’s usual to have long rent free periods but only if the lease is a decent length, but then with an earlier break clause (still a lot longer than residential usually) it’s still a risk. 

I think part of me just wants the easiest option for everything, however I have a massive gap in knowledge when it comes to pensions, it’s something I’m only now looking into. Priorities were always living, debts and mortgage. I’ll try and have a talk with dh again I think and see what he thinks. Thank you so much  😊

newgirly

Sorry just realized I didn’t answer the point of would it be good to split by tall girl. I’ve already asked the agents and the answer is it will reduce the interest and need money spending to change it, so probably unfortunately not.