Question on whether I should rent out my property

feras14123

we're thinking rather than selling our property we could rent it out instead, however as I was researching I was reviewing the tax bracket being 40%. I wasn't sure if it was worth it..

The current mortgage is under my wife and I and it's roughly £1000 a month if we were to rent it out we'd be getting £1300 a month.

My annual salary is £60k and hers at £17k, would we fall into the 40% tax bracket from the rental income or is that separated? 

born_again

Will your mortgage provider let you rent it out? As many will not on a std mortgage, or for just a short period.

Also look at just what is involved in renting out. As it is not just as simple as many think.

feras14123

That's correct it would be a consent to let from the bank. born_again said:

Will your mortgage provider let you rent it out? As many will not on a std mortgage, or for just a short period.

Also look at just what is involved in renting out. As it is not just as simple as many think.

pramsay13

If you haven't been a landlord before or currently I would say just sell it based on those figures. 
£300 a month extra is not a lot when you have to figure in redecorating, repairs, insurance, gas and electric checks, fire safety etc. 
If it doesn't rent immediately do you have a few thousand to service the mortgage for however long it takes to find someone? 
What happens if they stop paying?

caprikid1

"The current mortgage is under my wife and I and it's roughly £1000 a month if we were to rent it out we'd be getting £1300 a month."

You need to remember that only the interest is tax deductible so if you have mortgage interest of £300 you could easily find yourself paying 40% tax on a £1000 or more that income.

So without an interest only mortgage it would almost certainly be cash negative on those figures.

HouseMartin567

With the information given it certainly doesn’t seem that the numbers would stack up. Additionally, assuming you are buying another property you would incur the extra 3% stamp duty on your new purchase.

And that doesn’t even factor in the mental stress of being a landlord (been there, done that).

propertyrental

and if the renters reform bill becomes law......

https://publications.parliament.uk/pa/bills/cbill/58-04/0015/230015.pdf

feras14123

Thank you everyone here for providing some insight regarding this  .