Posted on 14 May 2012 by Jan
I have a flat and I'm mortgage free. I bought the flat for £150K in 2006, and now it is worth £110K (2012). I want to sell and relocate to London but I'm not prepared to lose £40K of my money. Am I able to rent out my property for the next few years inorder to make up for the loss in equity. Once I have earned £40K from rental income I can then proceed to sell the flat for £110K. I just don't not want to lose any of the money i've invested in the flat, thats why I'm thinking of doing this. I'm not interested in making any profit - I just want my £150K back. I don't know if I can do this legally. Please advise the best way to approach this.
As you are mortgage free there is nothing to stop from letting your property if you so wish. It is a decision that is not to be taken lightly and I would recommend that you speak to at least 3 different local lettings agencies about what is involved, your legal duties as a landlord, what services they offer, the cost and finally how much monthly rental they think you can anticipate.
With regards to your move to London, have you thought about where you are going to live and on what basis? If you are renting then it is possible that the rent you pay will be greater than the rent you are receiving and if you are buying do you have a sufficient deposit saved or are you going to need to raise that on your existing flat?
We have a lot of experience in arranging mortgages for a deposit and I believe you would benefit from speaking to one of our independent mortgage advisers. Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to help you find the right mortgage for your situation.
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