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Should i let out my property instead of selling it?
baby_frogmella
Posts: 1,556 Forumite
Hi
Sorry to ask this question for the billionth time on these forums but i would appreciate some advice regarding my current scenario.
At beginning of May i found a new build property i fell in love with in Scotland and decided to reserve it. I have already accepted missives (exchanged contracts) on it, paid a 12k deposit on it and it is due for completion end of July/beginning of Aug. My current property also went on the market at beginning of May and since then despite having 3 viewings its not been sold. I was super duper confident that it would be sold by end of June but now realise it was foolish to think like this and i will only sell it fairly quickly if i lower the price drastically which i'm hesitant to do. This leaves me one other option; assuming my mortgage lender agrees, i could let it out and take out a completely new mortgage on the new build property. I currently pay 950 pounds mortgage, i'm hoping to get around 800 pounds rent pm....does this sound reasonable? How easy is it to find tennants? And is the rental market also in decline? This is the property i'm selling:
http://www.rightmove.co.uk/viewdetails-17792176.rsp?pa_n=1&tr_t=buy
Would appreciate your thoughts
Thanks
Sorry to ask this question for the billionth time on these forums but i would appreciate some advice regarding my current scenario.
At beginning of May i found a new build property i fell in love with in Scotland and decided to reserve it. I have already accepted missives (exchanged contracts) on it, paid a 12k deposit on it and it is due for completion end of July/beginning of Aug. My current property also went on the market at beginning of May and since then despite having 3 viewings its not been sold. I was super duper confident that it would be sold by end of June but now realise it was foolish to think like this and i will only sell it fairly quickly if i lower the price drastically which i'm hesitant to do. This leaves me one other option; assuming my mortgage lender agrees, i could let it out and take out a completely new mortgage on the new build property. I currently pay 950 pounds mortgage, i'm hoping to get around 800 pounds rent pm....does this sound reasonable? How easy is it to find tennants? And is the rental market also in decline? This is the property i'm selling:
http://www.rightmove.co.uk/viewdetails-17792176.rsp?pa_n=1&tr_t=buy
Would appreciate your thoughts
Thanks
0
Comments
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why would a lender lend you money to buy a liability that you have to subsidise by £150 a month PLUS all the rest of a landlords expenses - CORGI certificate, repairs, voids, insurances, etc etc etc etc0
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Your lender may not be happy to agree to you letting, if the rent does not cover the mortgage. They may also have regard to the amount of equity you have in the property before giving permission.0
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Don't BTL want 125% ? So rent is 125% of the mortgage cost?
So was it cheaper to rent than buy when you bought it?0 -
baby_frogmella wrote: »I currently pay 950 pounds mortgage, i'm hoping to get around 800 pounds rent pm....does this sound reasonable?
I assume the £950 you pay is a repayment mortgage? What is the interest rate on your mortgage?
You could rent it out if it meets the lenders criteria regarding mortgage multiples - typically 125%0
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