What options do i have

BACKTOBACK

I live in a detached bungalow in a cul-de-sac that i am trying to sell. The bungalow is nice, my cul-de-sac only has a few other properties with mostly retired people so its quiet. But i hate living in this area and am getting depressed here.

Im lucky in that its owned outright with a value of around £225k. It could be rented for around £1k a month.

I want to move to a new area in the South East. Properties in the new area would be around £100k more, like for like, and i would just about be able to afford that without a mortgage.

There are about 5 other similar properties to mine in the immediate area that have been for sale for a few months and not sold. This makes me think its the current market more than my property price.

Initially i would be moving to the new area without employment with a plan to do any type of work as soon as possible.

It really feels like my life is on hold now and in a place where i am not happy.

I don't understand mortgages or home loans as i have been lucky enough to never need one. But just wondered if there is an option where i could rent my current home for £1k a month and use that money to get an interest only mortgage for the bungalow value being £225k and get on with my life.

Is there any other suggestions or options so i can get on with my life in a new area?

El_Torro

Getting a Buy To Let mortgage on your property and renting it out is an option. You will need a deposit of 25% for most (possibly all) lenders to consider it. A 40% deposit or higher will give you better interest rates though. 

If you've never been a landlord before you need to consider if you really want to get into Buy To Let, including the risks that come with it. 

RAS

Do the numbers stack up. Tax on rental income, LA fees, EIRC, gas certificate, wired smoke monitor, carbon monoxide, ERC, inventories before you think about damage or unpaid rent?

ReadySteadyPop

BACKTOBACK said:

I live in a detached bungalow in a cul-de-sac that i am trying to sell. The bungalow is nice, my cul-de-sac only has a few other properties with mostly retired people so its quiet. But i hate living in this area and am getting depressed here.

Im lucky in that its owned outright with a value of around £225k. It could be rented for around £1k a month.

I want to move to a new area in the South East. Properties in the new area would be around £100k more, like for like, and i would just about be able to afford that without a mortgage.

There are about 5 other similar properties to mine in the immediate area that have been for sale for a few months and not sold. This makes me think its the current market more than my property price.

Initially i would be moving to the new area without employment with a plan to do any type of work as soon as possible.

It really feels like my life is on hold now and in a place where i am not happy.

I don't understand mortgages or home loans as i have been lucky enough to never need one. But just wondered if there is an option where i could rent my current home for £1k a month and use that money to get an interest only mortgage for the bungalow value being £225k and get on with my life.

Is there any other suggestions or options so i can get on with my life in a new area?

It is likely that all the properties are over-priced, the market is just normalising to historical levels of borrowing rates, why do you think someone would rent the property if you don`t like the area and houses in the area are not selling? What is the main type of employment in the area? I think an interest only mortgage based on assumed rent is unlikely.

SarahB16

Bungalows are usually in huge demand.  Are you using a High Street Estate Agent and not somebody like Purple Bricks.  My initial thoughts are make sure there is sufficient advertising of your bungalow and try and sell it before you consider other options. 

BungalowBel

It does seem odd that there are bungalows that have been for sale for months and not selling.  Have you had many viewings?  If not, it suggests the price is too high.  If you have had viewings but no offers, what feedback have they given?

I would be very wary of renting out, there are so many rules and regulations that an inexperienced landlord can fall foul of.

BACKTOBACK

BungalowBel said:

It does seem odd that there are bungalows that have been for sale for months and not selling.  Have you had many viewings?  If not, it suggests the price is too high.  If you have had viewings but no offers, what feedback have they given?

I would be very wary of renting out, there are so many rules and regulations that an inexperienced landlord can fall foul of.

I know its very unusual but there is 4 bungalows including mine for sale between £200 and £245 the others have been for sale longer than mine. A couple have been reduced but still no interest

youth_leader

Good luck.   I understand why you feel depressed if you are in a cul de sac.  I live alone in a bungalow but I'm on a very popular dog walking route, so there is always someone passing the house.  I bought in March 2021 for 237,500 and Zoopla have just said I 'could' get £324K.  It's just a logarithm to be taken with a pinch of salt.  I did have the place valued last year at £250-300K.  I told the agent as an older person I wouldn't be happy to view a place with that sort of pricing - they said to market at £285K. 

What are the other bungalows selling for?  Are you on a big estate? 

I went down to Exmouth searching and ended up at a terrible place called The Marles - all bungalows, very very hilly and just waiting for god, argh it was a terrible place.  I was on foot from the bus stop and if I'd have had any shopping I wouldn't have made it home, about a 1:16 gradient.

BACKTOBACK

I will post links to four bungalows in my area, all been for sale weeks or months just for opinions and positive feedback. Its hard to say there is a problem with any one property when nothing is selling though.

https://www.johnsankey.com/property/booth-avenue-pleasley-ng19-2/
https://www.johnsankey.com/property/crookes-avenue-pleasley-ng19/
https://www.rightmove.co.uk/properties/165431285#/?channel=RES_BUY
https://www.rightmove.co.uk/properties/166521761#/?channel=RES_BUY

Herzlos

Those all look like pretty nice bungalows, though I noticed they are Council Tax band B's which means they were pretty cheap at some point. 

I'm not familiar with the area but from Google maps the location seems pretty handy. Does Pleasely have a poor reputation?

poseidon1

BACKTOBACK said:

I will post links to four bungalows in my area, all been for sale weeks or months just for opinions and positive feedback. Its hard to say there is a problem with any one property when nothing is selling though.

https://www.johnsankey.com/property/booth-avenue-pleasley-ng19-2/
https://www.johnsankey.com/property/crookes-avenue-pleasley-ng19/
https://www.rightmove.co.uk/properties/165431285#/?channel=RES_BUY
https://www.rightmove.co.uk/properties/166521761#/?channel=RES_BUY

One of the major things I look to identify when property hunting ( anywhere) is risk of flooding.

If the following link can be believed the entire ward of Pleaseley is high risk. From my perspective that would eliminate that entire area from my search parameters.

https://www.getthedata.com/flood-map/pleasley

However, I am not representative of the general population who from what I can gather, are not particularly cognizant of this factor when property  hunting. Other factors must be at play in Pleaseley.