Hi All, can I have your advise please.
I have a flat which I bought in November 06 which I spend no time in as i stay at boyfriends. My mortgage payment is £535.00/month on a repayment mortgage of approx 89k.
I can get a three year no void deal which will service the interest but not all of the capital so would cost me approx £100.00 month. My mortgage company says I can keep current deal.
I bought it for 100k and they are now selling for 120k but I would have to pay £1500.00 in redemption fees to mortage company on top on solicitors and estage agent fees.
What does everyone think I should do, rent it out for a long term investment or sell and put money on deposit in bank.
Thanks
2007-07-05 01:28:10 · 7 answers · asked by Lilly11a 2 in Business & Finance ➔ Renting & Real Estate
Rent it. I did the same. Pensions in the UK are up the spout, so it's part of my pension plan. Plus why pay redemption fees? If you are paying interest and capital on the current deal from your lenders keep that. Paying interest alone is never the best option. If it is worth more than you bought it for, it is likely to hold it's value; not as strange as it sounds. There was a news report last night that flats are not holding their own in the current UK market.
Bear in mind too that it is your property, not your boyfriend's and you will always have something to fall back on if things (unfortunately) go belly up with him; sorry but got to think of all possibilities. A house (though it may never seem like it!) is an asset. If you have one, you can borrow against it.
Keep your foot on the housing ladder girl, I don't need to tell you how hard it was for you to get on it in the first place!
2007-07-05 01:37:03 · answer #1 · answered by politicsguy 5 · 0⤊ 0⤋
oh my dear. ok keep the property with you considering house prices are increasing £100 a day average in london. ok. if you still want to sell the house then you have to pay early redemption fee. if have insurance on building and contents for the life of mortgage then you might need to pay them some extra money as well.
the best way is put it on rent with an estate agent and do it a property management contract with them. they will responsible for all repairs and bills. and you will get your rent every month in your bank account. regardless if the property is vecant on rented.
say about next year near easter time when properties are on peak every year you sell your house and then manage to get 155k. then you can invest that money in buying couple of flats in France or Itly. you can rent them there and rend you will get is double the amount from UK.
hope it helps. good luck.
2007-07-05 08:40:24 · answer #2 · answered by Kesh 3 · 0⤊ 0⤋
If you do'nt need the money then rent it out.Make sure you have the right insurances in place and that the rent covers all your outgoings with a bit extra for wear and tear etc.
2007-07-05 10:14:33 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I would go with renting. It is always better to have a property than not. It will still go up some more. Stick with it.
2007-07-05 08:32:23 · answer #4 · answered by Tom S 3 · 0⤊ 0⤋
Rent it out. that way if things dont work out with the boyfriend you have something to fall back on.
2007-07-05 08:36:42 · answer #5 · answered by Lucie 3 · 0⤊ 0⤋
rent it, real estate will gain its cost more and more and this way you will benefit in the long term.
2007-07-05 08:41:18 · answer #6 · answered by Micky 2 · 0⤊ 0⤋
rent it - you will make more money in the long run by far
2007-07-05 08:31:10 · answer #7 · answered by Tiger01204 5 · 0⤊ 0⤋