I’m thinking about selling my rental flat and would love some input from you all.
My situation:
I used to live in my flat, I currently rent and plan to buy within the next few years and would need to sell the flat to do so.
I’m aware the laws are probably changing next year so that I’ll find it difficult to evict my tenant when I want to do that.
There’s communal heating in the building so my service charge has gone through the roof and my return is sitting at 3% per year - I can get this much at the bank.
It feels like the obvious thing to do is sell, especially since property prices look like they’re going to drop. I just want to make sure I’m not making a mistake since I’m not a professional landlord.
Thanks so much for any advice you have to offer.
Yeah, in those circumstances I would sell. If you have a current tenant, give them plenty of notice as it’s tough out there.
Yes, given your situation, I would probably do the same. There’s not really going to be much difference in the advice you’ll receive on this. You want to buy a property, therefore you need to sell your current one being rented out to afford it, that’s assuming you don’t want to live in the current rental yourself.
If you are not confident about the correct processes of giving notice to your tenants, I would consult / join NRLA. Alternatively, you are most likely going to use an estate agent for the sale, and a good one will be able to advise you on appropriate next steps with your tenant. Good luck!
You would still be able to gain possession as it was your home previously providing you have given notice of this in the tenancy agreement. That said in your situation I would sell up if you are only getting 3% return.
Factor in capital gains tax into your sums.
I would drop it immediately and in future don’t go near anything with service charges or communal bills. also ensure they are freehold or 999 year lease. with plenty left on it.
exaactly what i do Tony 9 . Spot on
Mitra. I would be very interested to know the bank that pays 3% , or do you have to strap it in for 3/5 Years.
There’s is nothing wrong with properties with long leases (80 years plus). 999 years is simply not necessary, plus it’s very rare. Maisonettes typically have zero service charge and easy to revert to zero ground rent. They are perfect rental properties.
I’ve seen one year deals at 2.95% (Gatehouse Bank and Ford Money) so you do need to tie in but I’m good with that amount of commitment. Thanks for sharing your thoughts on what to do!
My places are freehold and I have bought and kept and bought and sold places with 999 year leases with about 90 years gone. I would not consider an 80 year place as they have got you by the ear lobe. But everyone will have a different priority.
Just check sold prices, totally free. I suppose if people can’t google this free info then might be useful, to a few
Selling is definitely on the cards, however, be careful of CGT and any ERC on the mortgage. What is the area of the rental? I am investing if anyone has anything of interest.
I hate to break it to you, but property prices have already dropped.
Ultimately nobody here will really be able to give you a definite answer because too much depends on your personal circumstances. If you need the money to buy a new place and you’re sure you’re going to do that in the foreseeable future then it makes sense to sell. It could take quite a while to sell in the current market. But it will be easier for you to buy if you’re a cash buyer rather than someone in a chain.