SOA questions

saajan_12

https://forums.moneysavingexpert.com/discussion/comment/81934748#Comment_81934748

Well £210 cashflow isn't exactly huge when its accompanied by some significant risks - what if the property needed major repairs or the tenant stopped paying or a small mistake in landlord responsibilities caused a x000 penalty?

Also is the £210 after paying tax on the rental income?

I would sell the BTL and clear out a chunk of the debts. That'll reduce the monthly payments by more than £210 I expect and stop further interest.

SpireCaptain

https://forums.moneysavingexpert.com/discussion/comment/81935144#Comment_81935144

You're absolutely right, £210 gross before tax is completely unprofitable with the terrifying possibilities that accompany letting out a house. When I had two and rates were low it was more like £800 pcm but they were still below market rate rents. Last house got trashed, cost me a lot of money to get it saleable and vowed to get rid of the other one. Tennant has been in since 2015, grew up on the street and lives opposite her Mum so I feel morally obliged to sell it to her say at 10% discount. As long as I get back what I put in I'm at peace with that. It's non standard construction but with a brick cladding so they have a certain ceiling price anyway.

Any money I would get after CGT and fees etc I'd have to used to furnish a rental house and also by a cheap runaround car as my relationship has ended with 3 sons to provide for. And so I'll still have to enter a DMP and hope for full and finals in a few years after renting.

SpireCaptain

https://forums.moneysavingexpert.com/discussion/comment/81935073#Comment_81935073

Since the last rental got trashed I've always wanted to sell especially as I'm more risk adverse now. If they were just normal tenants I'd have no qualms it's just they said to me 2 years ago outright you're not thinking of ever selling this are you? She's model tenant and asked me for the bond back to put towards new kitchen worktops.

I need to build the courage and ask her if she'd be in a position to buy it. Or ask her if she knows any landlords that would but it and rent back to her.

ArtyJ931

Update - 7 months later and 3 of my debts have defaulted so far.

I have pots built up for all my ongoing regular and irregular costs, plus a decent emergency fund. I’m building up my fund to make settlement offers down the line too, though as I am now covering all my ongoing costs without using credit, this is a slower process.