Should I sell for a loss and use sale money as deposit for next property?

Theresonly1

I currently own a 1 bedroom property (when I bought it when I was single) and now wanting to move to a bigger family home (let's say 4+ bedroom).

Should I sell my 1 bedroom property even at a loss? & use the recouped funds as deposit towards my next property? Or does it matter at all? Does the loss considered as a loss given that all the revenue generated by the sale would go as deposit for my next property so would be a bigger deposit meaning I would likely borrow less for my next mortgage?

...If I sell I would incur approx £30K loss (based on recent valuation). 

Or because I'm selling at a loss, is it better to keep my existing property and letting it out instead?

Mr.Generous

How on earth can you lose £30k on a 1 bed?? They are good landlord properties, plenty of demand round my neck of the woods. When did you buy and how long have you had it?

Theresonly1

Mr.Generous said:

How on earth can you lose £30k on a 1 bed?? They are good landlord properties, plenty of demand round my neck of the woods. When did you buy and how long have you had it?

7 years ago. 

Since then a lot of new builds 1 beds have popped up so there's more supply in my area now hence the drop in valuation.

Mr.Generous

Where abouts is it?

NameUnavailable

There is usually a premium for a new build but even so, 30K loss?!!! Are you sure? Prices everywhere have increased quite a lot over the past 7 years.

However, if you really did 'lose' £30K consider how much rent you would have otherwise had to pay in that time for a similar flat.

Mr.Generous

Ah a flat, I was thinking of 1 bed houses. My bad.

housebuyer143

If you keep it, you will incur additional 3%or 4% stamp duty on your next purchase. As it's likely to be a big property that will cost you into the tens of thousands. That's a real loss. 
For that reason j don't suggest you rent it. If you want to move I would reluctantly take the loss and move on.

Shelldean

I can't help with your decision OP.

BUT to NameUnavailable and Mr.Generous.
I know of a 1bed flat brought early 2017, 245000. Sold late 2021 225000.

So these losses do unfortunately happen.

This was outer London borough

user1977

Unless you think it's suddenly going to shoot up in value (by any more than whatever you buy next) then why not just sell? There's no law that you must make a profit on property. As already said, you owned it primarily as a place to live, not as an investment.

Theresonly1

user1977 said:

Unless you think it's suddenly going to shoot up in value (by any more than whatever you buy next) then why not just sell? There's no law that you must make a profit on property. As already said, you owned it primarily as a place to live, not as an investment.

i don't know. maybe it will rise... property have been rising over the last 30-40 years... 
or I could hold onto it forever and leave it for the next generation?

Theresonly1

Shelldean said:

I can't help with your decision OP.

BUT to NameUnavailable and Mr.Generous.
I know of a 1bed flat brought early 2017, 245000. Sold late 2021 225000.

So these losses do unfortunately happen.

This was outer London borough

Yes I understand. 1 bed flats especially new builds are at a premium and are highly inflated hence it common for these loses to occur.