Hello, I want to offload a property and this may create an opportunity for someone here. I’ll explain the situation as comprehensively and honestly as I can.
I own an apartment in a highly unique and affluent area of North Leeds (LS29 6RS). I purchased the property as a personal residence in October 2022 for £215,000. At the time, the market value was about £225,000.
The property is leasehold (DOV in place to reduce ground rent to £250 p/annum), and service charges are about £180 p/month.
Due to a change in personal circumstances, I needed to relocate to Manchester so in summer 2024 I tried to sell the property with a list price of £215,000. Interest was slow so I put it on the rental market and secured a tenant immediately for £1195 p/month.
As my mortgage is a 95% residential repayment mortgage, plus service charges etc, I am losing £300 p/month, which is fine, but not ideal. Clearly with an interest only mortgage at 75% or less, the property would be nicely cashflow positive.
I cannot switch to a buy to let as I am currently in an IVA. I expect to clear this by October 2025, but I still won’t be able to switch as it’ll be on my credit file.
My current mortgage balance is £194,000 with a £9700 early repayment penalty (I know, I know……).
I know Zoopla isn’t particularly accurate, but for context, they’re showing an estimated value of £237,000.
The property is beautifully appointed and needs nothing. It was freshly decorated before the current tenant moved in.
My aim is to sell for £210,000, so I break even after fees and walk away.
The property is not financially attractive to me due to my situation, but it would make a good investment for a cash buyer or someone with a standard buy to let. Most of the other apartments in the building are occupied by tenants, not homeowners, so it appears to be an attractive rental proposition.
Open to other suggestions too, or just your general thoughts.
Thank you!