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PRS is making quite a comeback in the UK new housing market. I've recently been involved in something where there was a mix of private owned, affordable and private rental sector properties. There are quite a number of them coming onto the market in the SE.
Estate/crown housing - is private rental it was just administered differently basically it was renting off your employer back then
Read the poor had no lawyers by andy wightman if it remotley interests you how scotland came to be as it is . Warning it reads like a university review text but is very interesting and fully referenced
I see this has descended into something of a STW splitting hairs/personal differences/political leanings/conjecture debate..
Anyways.. [b]can someone advise me?[/b]
I own a house (or rather the rights to pay the mortgage!) on a property recently valued at £149k near coastal mid-Wales. I've since moved away and am now renting, but also have been renting out my old house as a landlord. I put down something like £23k deposit on the property when I bought it 3 1/2 years ago. It's value has risen (apparently) by a £k or a few since then.
So... I'm now in a situation where being a landlord doesn't suit - the last tenants ran up 3 months rent arrears, caused damage and did a runner - and I am strongly considering selling as the better option. Selling the property means biting the bullet for 6-9 months 'till it sells (?) - and continuing to pay a mortgage on the property, while continuing to pay the rent where I live now. I will also probably have to fork out another £3k getting the place renovated, so that it sells promptly.
I gather I may own more equity on the house - now that I've paid 3 1/2 years payments on a 35 year mortgage, so I will (possibly) recoup more of the selling price, but then fees and all that vampire crap will eat into this. I'd feel I'd like to be able to get my deposit money back, but I'm not sure that will even be possible.
So... according to STW [b]should I stick or twist? (continue to be a landlord, or sell up now?)[/b]
First time buyer by the way - so I literally have no idea what I'm doing.. 😯
Insurance job
I gather I may own more equity on the house - now that I've paid 3 1/2 years payments on a 35 year mortgage
You'll be looking at pennies. Your repayments in this period will be largely paying the interest, not the capital.
You'll probably get some of your deposit back but I doubt you'd walk away with £25k imo.
If your valuation is right then I'd suspect you won't recover all of your deposit after fees. That doesn't mean selling is a bad as it'll cost you money to keep it. Depends how well it rents. I don't imagine coastal mid Wales is a rental hotspot or likely to see much in the way of property price rises. I think I'd sell, live with losses and do something else with the money but it depends on your situation.
I was/sort of am in the same position NID. Only difference is I now live in home provided by my employer so the numbers make a bit more sense.
To be honest I'm not sure I would continue in your position and would cut your losses if you are able to look to buy where you are now. If you get a good tenant you are still liable for tax on your income from the house (and the repayment part of the mortgage payment does not count as an outgoing so making a profit to be taxed on is easier than you might think) and you will pay capital gains tax for the years you are renting it out if the house goes up in value irrespective of if it costs money just to keep the house at the same standard it was when you bought it. I would say it only makes sense to carry on if you couldn't possibly afford to buy where you live now as it still keeps you in the housing market.
TheBrick - Member
Insurance job
^ That - I wouldn't rent out a property without malicious damage cover, heard a few horror stories running into £10k+ including unpaid rent & damages (mate actually turned up in a van with a few of his mates in the dead of night to perform an "eviction" only to be confronted by the tennant with a video camera in one hand & a phone ringing 999 in the other... knew his rights apparently)
Okay... cheers guys. That's STW decided it then, I'll sell the house.
This whole thing makes me feel a bit sick, wish I'd never got into it now.. 😐
mcj78. Lame eviction attempt then. If someones not paying and wrecking the place get a phone jammer and heave ho. Id bet they won't have the cash to get a lawyer and after the event the police won't be that arsed. If anyones crying about their rights offer them a bed