Sell or rent out a gifted house ?

Allis72

Was gifted a house by my parents 10 years ago - i have now moved in with my partner & need to decide if im best to rent it out or sell (from a tax perspective)
Value is approx £180k 
obviously any informal & non binding advice or suggestions would be gratefully received so that i can look into my options with others knowledge

thank you so much in advance - im totally new at this

BikingBud

Allis72 said:

Was gifted a house by my parents 10 years ago - i have now moved in with my partner & need to decide if im best to rent it out or sell (from a tax perspective)
Value is approx £180k 
obviously any informal & non binding advice or suggestions would be gratefully received so that i can look into my options with others knowledge

thank you so much in advance - im totally new at this

How much investigation have you put into understanding the benefits and issues of being a landlord?

What do you anticipate you might get from renting?

What do you think you could realise from selling?

What would you do with this cash?

Are you buying into your partner's house or just lodging?

What age?

Long term plans? Marriage, moving, kids?

What happens if you split?

Many other questions that might/should influence your decision.

Mark_d

Renting it out would likely incur a CGT liability when you eventually come to sell.  You would pay income tax on your rental income.  It would cost you to bring the property up to a standard to be rented out, and then it would cost you further for maintenance of the property whilst it is rented out.  If you're unlucky, you could have issue with the tenant or other unforeseen issues with the house whilst it is rented out, costing you more money.
If I were you I would sell the house and invest the proceeds in S&S ISA, Premium Bonds and the rest stock & shares/funds

Allis72

Mark_d said:

Renting it out would likely incur a CGT liability when you eventually come to sell.  You would pay income tax on your rental income.  It would cost you to bring the property up to a standard to be rented out, and then it would cost you further for maintenance of the property whilst it is rented out.  If you're unlucky, you could have issue with the tenant or other unforeseen issues with the house whilst it is rented out, costing you more money.
If I were you I would sell the house and invest the proceeds in S&S ISA, Premium Bonds and the rest stock & shares/funds

Though i assume i will have CGT if i was to sell now too

RAS

Did you live in the house at any time in the last 10 years? 

Stubod

..sell, sell, sell, sell......you really don't want to be a single property landlord...IMHO.....

Allis72

RAS said:

Did you live in the house at any time in the last 10 years? 

moved out 12 months ago - its been empty since while waiting to make sure we had made the right move

RAS

In which case you will be paying CGT on 3/120 x (increase in value since you were gifted the property- £3k), if you sold today.    

Albermarle

Mark_d said:

Renting it out would likely incur a CGT liability when you eventually come to sell.  You would pay income tax on your rental income.  It would cost you to bring the property up to a standard to be rented out, and then it would cost you further for maintenance of the property whilst it is rented out.  If you're unlucky, you could have issue with the tenant or other unforeseen issues with the house whilst it is rented out, costing you more money.
If I were you I would sell the house and invest the proceeds in S&S ISA, Premium Bonds and the rest stock & shares/funds

Or also increase contributions to your pension/add lump sums ( depending on what sort of pension you have, if any). 

RHemmings

I will take a contrary view here as a 'devil's advocate'. I could see that the OP could be emotionally attached to the house, and want to keep it. Because of an emotional connection to the house. Not saying the OP should - just wondering if that's part of the equation. 

One thing you (OP) could do. You could pay to join the National Residential Landlords Association (about £100) and then read every bit of their advice/guidance/forms. If you recoil at the idea of paying out £100 and doing the work of reading, then I suggest that is even more evidence for: sell.