Sell up or rent out?

[ch427]

Would appreciate any advise from people that may have been or are in a similar position.
Plan to move soon, present property is worth £140k with £38k left on the mortgage.
New property we are looking at is £230k.
Savings of around £40k.
Just wondered what others would do in my situation. Sell up and enjoy a comfortable living at an expensive time (marriage soon and maybe starting a family next year) or rent out and maybe not be as comfortable.
To rent my exisitng property out i would need to spend £7k on it to do some external repairs etc but could sell it as is. Rental income is estimated at £600 pcm.
With depostis on mortgages being so high these days im struggling to decide what to do!
Appreciate any advice.

[ch427]

What sort of deposit do the best rates come at?

[ch427]

IanA2 said:

How does CGT fit into this scenario?

Not sure how to calculate this.

[ch427]

I tried to make this a poll but it didnt work, just out of interest which way would people go?
Only thing im struggling with is why borrow more against the btl property when the interest rates are higher?
Likely scenario is that we put down a 15% depostit on the new property which will be raised by the btl mortgage.

[ch427]

Sarnie said:

ch427 said:

I tried to make this a poll but it didnt work, just out of interest which way would people go?
Only thing im struggling with is why borrow more against the btl property when the interest rates are higher?
Likely scenario is that we put down a 15% depostit on the new property which will be raised by the btl mortgage.

In answer to your question....you max out the BTL lending because it's being repaid by someone else (tenants) to reduce the the monthly payments and interest rate payable by you.....the rate is less important when its being paid by you. Also, the biggest debt will be the residential mortgage, therefore getting that on as low a rate as possible is the priority.

Also, technically, this would be a Let-To-Buy mortgage, not a BTL.

Feel free to drop me a line if you want any help with this

Thank you.

[ch427]

Good advice there thanks.
I cant see the house prices rising dramatically, it is a refurbished large 3 bed terraced in south wales.
Its really a long term investment as i have no pension in place, at the age of 41 now i think it may be worth hanging on to for 15-20 years. Its difficult not to think of also just selling up and putting the £100k down now.

Edited by ch427 on Tuesday 15th July 08:45

[ch427]

Retman said:

ch427 said:

Good advice there thanks.
I cant see the house prices rising dramatically, it is a refurbished large 3 bed terraced in south wales.
Its really a long term investment as i have no pension in place, at the age of 41 now i think it may be worth hanging on to for 15-20 years. Its difficult not to think of also just selling up and putting the £100k down now.

Edited by ch427 on Tuesday 15th July 08:45

Well if it's tied up in property and it's on a repayment mortgage at least you can't spend it on cars and the like so you'll have an asset at the end. I have similar as part of my (meagre!) pension planning. Good luck with the new house whichever way you go.

Thanks, i may still get to scratch my tvr itch too in a few years hopefully!