Sell .. Rent …

Eroll27

Hello ! 

We are in a very fortunate position where we are moving due to my husbands work to an accommodation all paid for job starting in August this year. 

 He has been in the position for over 8 years and his job is at a private school . We currently own a 2 bedroom semi detached house which has a 20% help to buy loan ( 68k). It’s worth approx 400k bought it for 335 in 2019.
 

I’ve posted on here before about whether to sell up or rent the property. We then put our house on the market with no luck. The rental value is approximately 1600 a month.

please can I have peoples thoughts on the following options …


1- Remortgage our HTB loan into the mortgage and do a BTL mortgage - the current best rate  is have is 4.22% with a 8k product fee ( 5.72% overall) so monthly repayments will be around £1050.

2- Ask for permission to sublet our property with BTL this would bring our monthly repayments down but we would be paying the interest on BTL (1.7% interest) but forgoing 20%of the increase in value of the hosue overall - I  can’t figure if this would work out better but I guess nobody knows how houses prices will change but obviously the interest is very low on this 20%.

3- try and sell now - we are probably heading down this route and putting the deposit into a high yield savings account. 

Are there are other options or things I should be considering? Any advice or thoughts would be very helpful as it’s a huge financial decision for us as it always is with everyone with selling or renting out their property thank you so much ! 

Eroll27

I’m fully aware you need permission to rent your property on HTB I would need to find out  

BarelySentientAI

Option 3.

Don't become a landlord.

smipsy

Honestly, with moving to a new area, new job, effectively new life, last thing you need or want is the additional stress and responsibilities of being a landlord.

Sell and put the money away and let it grow stress-free

ReadySteadyPop

Eroll27 said:

Hello ! 

We are in a very fortunate position where we are moving due to my husbands work to an accommodation all paid for job starting in August this year. 

 He has been in the position for over 8 years and his job is at a private school . We currently own a 2 bedroom semi detached house which has a 20% help to buy loan ( 68k). It’s worth approx 400k bought it for 335 in 2019.
 

I’ve posted on here before about whether to sell up or rent the property. We then put our house on the market with no luck. The rental value is approximately 1600 a month.

please can I have peoples thoughts on the following options …


1- Remortgage our HTB loan into the mortgage and do a BTL mortgage - the current best rate  is have is 4.22% with a 8k product fee ( 5.72% overall) so monthly repayments will be around £1050.

2- Ask for permission to sublet our property with BTL this would bring our monthly repayments down but we would be paying the interest on BTL (1.7% interest) but forgoing 20%of the increase in value of the hosue overall - I  can’t figure if this would work out better but I guess nobody knows how houses prices will change but obviously the interest is very low on this 20%.

3- try and sell now - we are probably heading down this route and putting the deposit into a high yield savings account. 

Are there are other options or things I should be considering? Any advice or thoughts would be very helpful as it’s a huge financial decision for us as it always is with everyone with selling or renting out their property thank you so much ! 

 The landlord route could be work, and you may have voids or repairs to cover, do you have the time/money to cover this? What happens if the job/accommodation situation changes in future, where do you live? I would be tempted to rent it out but be prepared for the many issues that can crop up.