Moving back to a rented house?
Discussion
We've owned our current house for 9 years, and during that time we've done tons of work on it, extension, loft conversion, DPC, new floors, decoration, new bathroom etc etc.
Now it's nearly perfect for us and finished, we have itchy feet and face a potential need to relocate.
However the current financial situation means we can't get a new mortgage, so we were thinking of selling up, pocketing the equity, and going back to renting a house, until we can get a mortgage.
Anyone done it, pitfalls to watch, things to do? Our only previous experience of rented housing was when we were students / graduates, so cheap, close to a pub were the only criteria.
This time it will need to be a decent family home, with gardens, drive, garage etc etc.
Now it's nearly perfect for us and finished, we have itchy feet and face a potential need to relocate.
However the current financial situation means we can't get a new mortgage, so we were thinking of selling up, pocketing the equity, and going back to renting a house, until we can get a mortgage.
Anyone done it, pitfalls to watch, things to do? Our only previous experience of rented housing was when we were students / graduates, so cheap, close to a pub were the only criteria.
This time it will need to be a decent family home, with gardens, drive, garage etc etc.
You can usually port a mortgage to a different property, but that does mean you can't absorb the transaction costs by taking out a slightly bigger mortgage on the new place.
My wife and I rented a place for 6 months in 2005/06 while choosing where to buy; we were actually going to buy the rented place but she decided she didn't like it, so it was quite good to be able to try before we committed. I was fine with renting; family houses tend to be better value than terraced places, too; for instance £600/month would get you a two-up/two-down near me and £1000/month would get you a nice big 4-bed detached.
One potential problem is that rental properties generally won't allow pets. You've also got rather more to look after if you have gardens; your deposit could easily be retained in part if you don't weed the beds etc.
I would suggest renting something you wouldn't consider buying but would like to live in for a bit; maybe a penthouse apartment in the centre of town or a thatched cottage miles from anywhere.
My wife and I rented a place for 6 months in 2005/06 while choosing where to buy; we were actually going to buy the rented place but she decided she didn't like it, so it was quite good to be able to try before we committed. I was fine with renting; family houses tend to be better value than terraced places, too; for instance £600/month would get you a two-up/two-down near me and £1000/month would get you a nice big 4-bed detached.
One potential problem is that rental properties generally won't allow pets. You've also got rather more to look after if you have gardens; your deposit could easily be retained in part if you don't weed the beds etc.
I would suggest renting something you wouldn't consider buying but would like to live in for a bit; maybe a penthouse apartment in the centre of town or a thatched cottage miles from anywhere.
It makes a lot of sense if relocation is happening - family houses are less in demand so can be great value to rent, plus I always think it's best to spend some time living in an area and getting a good feel for places you want (or don't want!) to live in before seriously looking to buy.
SJobson said:
You can usually port a mortgage to a different property, but that does mean you can't absorb the transaction costs by taking out a slightly bigger mortgage on the new place.
1. If you are porting your existing mortgage you will be subject to the same credit & income checks you were when you took the mortgage out originally.2. You can increase the size of a ported mortgage, but you will be tied to your current lenders range, and you will pick any further borrowing from that range. That is assuming the value of the new place makes it possible to port the current mortgage in its entirity, and take on new borrowing.
Edited by scotal on Wednesday 4th November 10:30
scotal said:
GuinnessMK said:
However the current financial situation means we can't get a new mortgage,
Do you mean your personal financial situation? GuinnessMK said:
scotal said:
GuinnessMK said:
However the current financial situation means we can't get a new mortgage,
Do you mean your personal financial situation? I have just done exactly as you are intending and regreting every bit. I've gone from 300 pound a month for my fully refurbished house to a poxy 1,200 pound a month flat.
Stuck there for six monthe before I go back to Oz. Obviously London prices.
I do have 250,000 in my back pocket though so it's not all bad.
Stuck there for six monthe before I go back to Oz. Obviously London prices.
I do have 250,000 in my back pocket though so it's not all bad.
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