If owning that house gives her more pleasure than traveling or doing other activities, then that’s fine. Always double check the tax implications of letting a property before you decide to go ahead, it may show you would be better off selling and investing your money in other assets in light of the high levels of taxation. As a landlord, you have two main options; either sell the house vacant or sell it as an investment with the tenants still in place. If you live in any part of the UK we are here to help. In addition, the terms and conditions may restrict how you let the property. The following guest post on the reasons to buy a house instead of renting is by Tejvan Pettinger from The Mortgage Guide UK.. T he UK has one of the highest property owning rates in the world. If renting to a family with children, it is likely the school catchment area is one of the most important considerations and if you are in the right one, it might not work. TV and phone packages tend to be quite competitive, but you should review them annually as prices can increase faster than inflation, so if you are notified of a price rise, make sure you double check you are on the best rate. You will be subject to regular visits by the agent to make sure you are looking after the property. And you will need to make sure the property meets current legal requirements. I have had the idea of selling my house, and renting a property instead and having the extra money I have to invest in savings. Mortgage issues when renting out your home, How to rent out your house (step-by-step), How to find reputable ‘we buy any home’ type companies, http://www.rightmove.co.uk/house-prices.html, https://www.gov.uk/capital-gains-tax/allowances, https://www.gov.uk/tax-sell-home/let-out-part-of-home, How to avoid capital gains tax when selling a house, Everything you need to know about Stamp Duty Land Tax (SDLT), https://www.gov.uk/tenancy-deposit-protection, Association of Independent Inventory Clerks, The ultimate home selling guide (step-by-step), How to Avoid Capital Gains Tax When Selling Your Property. According to tax rules, the house will then remain part of your estate on your death, even if you live beyond seven years. It is possible to deduct genuine purchases you make for your let. If you’re selling the property to anyone other than a landlord then offer your tenants the opportunity to continue renting from you until the sale goes through. Selling or renting your home if it needs repairs 5 Min Read. We have just agreed the sale of our house and and looking for a rental. When is the Best Time to Sell Your House? Know the costs and how you will abide by and keep up with the national and local laws. If selling isn’t an attractive option. Online vs. high street (who will get you the better price), Why the best high street agents get better results. Can a landlord sell a house with tenants? Be careful of the timing to check a new area to live in if it is affected by tourism. The key areas you can reduce the CGT you pay include: Step 1: Seek your lenders permission in writing to let your original home or choose a new mortgage. 20 September 2010 at 11:46AM edited 30 November -1 at 12:00AM in House Buying, Renting & Selling Hi there - really confused so hoping someone can advise. Many people have been led to believe that being a landlord is extremely lucrative. Understand what happens if the tenants damage the property or won’t leave. This includes ensuring a property is safe, taking into account: Learn more: All you need to know about HHSRS. To find out if this is a possible, first check your property can be legally and safely let and that the costs will be covered by rental income and check how much it will cost you to rent in the new area. The short answer is, it depends entirely on what your goals are. So your equity will be higher, and your mortgage will be lower. It’s far more difficult to get a mortgage if you have bad credit, but not impossible.eval(ez_write_tag([[336,280],'bowfin_co_uk-medrectangle-4','ezslot_6',109,'0','0'])); To get a mortgage with bad credit may mean you have to take out a mortgage on a higher interest rate. Talk to local letting agents who are members of ARLA, NALS and UKALA. 20 September 2010 at 11:46AM edited 30 November -1 at 12:00AM in House Buying, Renting & Selling Hi there - really confused so hoping someone can advise. This is something you need to discuss with a mortgage broker who will help you understand what your mortgage payments will be at different levels of mortgage interest rates. If you want to see if we can help you to sell your house or your property portfolio, please contact us. Everyone has an entitlement to an annual allowance, but this can only be used once each year. Forecast what your existing home would be worth in the future – has it already benefited from huge capital growth over the last few years and these rises are now slowing or is there a reason for a potential big uplift, such as new transportation? I think that I will feel happier in my life without the dreaded cloud of debt over my head. What are the advantages of selling your house and renting instead? Upfront fees to secure safety certificates such as gas, electric and possibly an Energy Performance Certificate (EPC). Transferring property to anyone other than your spouse you may incur Capital Gains Tax . Are you thinking of selling a property you currently rent out? The hotter your market the easier your sale, Discover the best way to sell your home quickly, I'm NOT an estate agent. Check the requirements with your local Environmental Housing Officer from the Council or a local letting agent that is a member of ARLA or NALs to ensure you know what is required. But when a client is bequeathed a property following the death of a family member, it can seem like the perfect opportunity to dip a toe into the rental market and earn an additional income to … Kirkpatrick, who retired as a software development … If rates have gone up during the fixed term, your mortgage payment will see an increase. 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