Driving myself nuts thinking about this and could use some outside perspective.
We own a 2 bed flat in London which we bought for 345k in 2015. I fell pregnant with DD in late 2015 which was completely unplanned and unexpected (I didn't think I could have children). She is now 4, starts school in September and we have completely outgrown the flat. It's got no garden and the second bedroom is a single. It went on the market at 375k (lowest of 4 valuations I received) just before lockdown and we had a lot of viewings which now have completely dropped off. We now average maybe one viewing at week at most and the feedback is mostly that the second bedroom is too small and there is no garden, which I can obviously do nothing about. Price has been dropped to 365k to no effect and we are preparing to drop it again to 350k next week but from a look at rightmove it seems that flats without gardens in my area just aren't shifting no matter what price they are. #
We are desparate to move (just outside of London to be near my sister who is seriously ill). We have 260k left on the mortgage. We also have 40k of savings. In this situation (assuming it doesn't sell any time soon) would you:
- Hang around in the flat for as long as it takes to sell it
- Get a buy to let interest only flat on the mortgage and let out the flat (I'm well aware of all the associated costs of being a landlord!) while also renting another property in the area we want to live in. If we did this we would aim to overpay the mortgage on the flat.
- As above, but buy another property in the area we want to live in. This would be significantly smaller than what we would want as we would only have 40k to play with and would need to pay stamp duty as it would be an additional home, but we would at least be able to get a garden and probably also a third bedroom. But it would make me nervous as would wipe out all our savings.
Obviously my preferred option is to sell the flat ASAP and move but that just isn't happening.
I should mention that DH and I are both in well paid, secure jobs.
WWYD?!