Property received in an inheritance?
June 5, 2021
Are you foregin-based landlord?
June 7, 2021
Are you tired landlord?
You don't need to worry about letting your property or wait forever to sell. There is a far better alternative. Rent and sell at the same time!
You are the lucky one and own some properties. They may bring you some income but you are just simply tired of owning them.
The reasons why are you simply tired of them might be various but let’s focus on a few:
- They bring so little money and you simply are not bothered about what is happening as you have bigger things to deal with.
- You have constant maintenance issues with the property which cost you money but more importantly wastes your time.
- You have few tenants who are difficult ones with a lack of rental payments and/or damage to the property.
- You simply are tired of dealing with these properties and want to sell them most efficiently and profitably.
Whatever the reason you simply are tired and want to get rid of the problem which is owning and managing the properties. Well, you can sell. That means you get rid of the problem. But why don’t you take the benefit of ownership of the property and make more money?
Prons and cons of selling the property now:
- you get less money now. Most likely you accept the offer below market value. Typically on property worth £200k, you are likely to sell for £190k
- The sale can take quite a long time and in case of the buyer pulling out of the deal you face an even lower sale price and another month of sale
- You are losing any capital raise and monthly income
Rent to Buy seems like a great option for many. It is a combined sale with rent. Typically the buyer exchanges a contract today with a deposit payment and rents the property for a few years before buying it for the higher price. We will Explain the figures and advantages below.
With selling unwanted property each person needs to look in detail into their circumstances and financial aspects. From a financial point of view, you don’t need to sell the existing property to get rid of the problem of managing it and thinking about it even if you need some money to withdraw.
As the example: You own the property which is worth £200k with a £110k mortgage on it. You have £90k equity but you need £50k towards other needs. As you see just you still have £40k equity left in the property so it just makes sense to think twice before selling it. Let’s say the buyer for your property has a bit of saving of £20k. And the other £30k can be withdrawn by doing a remortgage on the existing property. That way there is no need to sell the house now and you still get the amount you require.
Why Rent to Buy would be a great option for this scenario?
- The price you are likely to get is slightly ABOVE MARKET VALUE. It is due to completion taking place in a few years. So instead of selling property for £190k, you sell it for £205k.
- Over a few years, you receive rent which not only pays off your mortgage but leave you with a surplus. Let’s say it is around £100 a month so £4000 in 3 years.
- You also save money as you don’t pay any estate agent fee for the sale. It is another at least £2k.
So total savings are £21k in this particular case. And there is hardly any tax to pay as well due to the fact it was your residential property.
Are you tired landlord?
You don't need to worry about letting your property or wait forever to sell. There is a far better alternative. Rent and sell at the same time!
You are the lucky one and own some properties. They may bring you some income but you are just simply tired of owning them.
The reasons why are you simply tired of them might be various but let’s focus on a few:
- They bring so little money and you simply are not bothered about what is happening as you have bigger things to deal with.
- You have constant maintenance issues with the property which cost you money but more importantly wastes your time.
- You have few tenants who are difficult ones with a lack of rental payments and/or damage to the property.
- You simply are tired of dealing with these properties and want to sell them most efficiently and profitably.
Whatever the reason you simply are tired and want to get rid of the problem which is owning and managing the properties. Well, you can sell. That means you get rid of the problem. But why don’t you take the benefit of ownership of the property and make more money?
Prons and cons of selling the property now:
- you get less money now. Most likely you accept the offer below market value. Typically on property worth £200k, you are likely to sell for £190k
- The sale can take quite a long time and in case of the buyer pulling out of the deal you face an even lower sale price and another month of sale
- You are losing any capital raise and monthly income
Rent to Buy seems like a great option for many. It is a combined sale with rent. Typically the buyer exchanges a contract today with a deposit payment and rents the property for a few years before buying it for the higher price. We will Explain the figures and advantages below.
With selling unwanted property each person needs to look in detail into their circumstances and financial aspects. From a financial point of view, you don’t need to sell the existing property to get rid of the problem of managing it and thinking about it even if you need some money to withdraw.
As the example: You own the property which is worth £200k with a £110k mortgage on it. You have £90k equity but you need £50k towards other needs. As you see just you still have £40k equity left in the property so it just makes sense to think twice before selling it. Let’s say the buyer for your property has a bit of saving of £20k. And the other £30k can be withdrawn by doing a remortgage on the existing property. That way there is no need to sell the house now and you still get the amount you require.
Why Rent to Buy would be a great option for this scenario?
- The price you are likely to get is slightly ABOVE MARKET VALUE. It is due to completion taking place in a few years. So instead of selling property for £190k, you sell it for £205k.
- Over a few years, you receive rent which not only pays off your mortgage but leave you with a surplus. Let’s say it is around £100 a month so £4000 in 3 years.
- You also save money as you don’t pay any estate agent fee for the sale. It is another at least £2k.
So total savings are £21k in this particular case. And there is hardly any tax to pay as well due to the fact it was your residential property.
