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  • Sell or rent conundrum
  • andyl
    Free Member

    Can’t decide what to do…

    Tenants are moving out shortly as I was planning to sell to free up the money to buy somewhere (now on hold). Mortgage runs out in November so can’t sign anyone up for 6 months. Got some repair works to do which will take about a month (tanking failed on one small area).

    Flat was extensively refurbished 20 months ago before the (excellent) tenants moved in. New combi boiler, rads, new floors, consumer unit, tanked, etc etc and is furnished to a good standard (not student like).

    Figure wise:

    Was valued at £200k a year ago, smaller flats in near but not as nice streets seem to be up for £225k now so estimating £220k.

    Looking at £650pm mortgage (repayment, BTL) and £850-900pm rent with £80 maintenance and insurance so i come away with £120pm + £290 paying off the mortgage so effectively still being banked.

    Or if I sell a good wedge to put in the bank until we are ready to buy but I will be lucky to see £3k per year after tax on that amount.

    I am tempted to sell just to get rid of the hassle and in case of any dips but the temptation to keep riding the increase in value is also hard to ignore and the income from the flat is a bonus as I am self employed and don’t have a regular income.

    Another option for a better gap in the figures is short term corporate lets. Looks like a potential £1500-1600 per month but with some risk of being empty and I would need to put a new washing machine in and some decent appliances (kettle, toaster, microwave, possibly TV etc)

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