Selling house & moving to rental. Any advice?(13 Posts)
Been divorced 3 years & currently living in an ex council house, 4 bed that is solidly built & lots of potential etc etc.
Complicated set up but basically family have helped me buy it & do it up (was a repo) and I had a lodger for 18 months which really helped.
However despite advertising extensively I have not replaced him since he moved out at Christmas, work has been sparse (s/emp) & Ex has been arsing about with maintenance.
The advantage of moving to rental depends on how much equity I could get out of the house as most of it goes back to my family but in the calculation I have allowed for legal fees, EA fees & moving expenses, deposit & a few months rent. I won't move for less than a certain figure.
The town I'm considering moving to would mean more work, less travellling to get the DC's to school plus better transport links for social life of us all. Not where I want to stay forever but as a stop gap while I reassess my life. (again!)
The problem is I have had evaluations by 3 EA - 1 part of a national chain & 2 local & the estimates vary from 15% less than I paid for it to £30k more!!
So I am getting 3 more estimates from bigger EA's just to get a ball park figure as I'm confused as to who is way out & who is realistic.
I have lived in our small rural community for nearly 20 years so I think I know how popular it is (sought after location & all that) so I'm sure it'll sell despite being ex-LA, you don't get 4 bed houses for under £200k locally. Problem is selling it at a good enough price to clear the debts.
I'm keen to move on as I've hung on here for the sake for the kids but living near to Ex while easy for them has been a strain & isn't improving or I'd wait until the youngest has left home in a few years.
Just thinking out loud really....anyone else done this? Pros & Cons?
Pros are those that you listed but massive massive con is security. Rented can chuck you out at any time. I wouldn't rent again unless tenancy was guaranteed for as long as I wanted ie council.
You are more freely moveable when in rented and they deal with maintenance provided they're not crap landlords which isn't a given but the inspections, never feeling like the house is really yours, unable to decorate in certain ways etc would really really put me off.
Would it be possible to rent out your home instead of selling it and renting elsewhere so you still had security?
Hi, wishing you good luck with yr decision , it's a tough call. Not sure where you live, but we have just moved from north to south, renting for 8 months due to job change etc, a necessary move. I would not want to rent voluntarily again, though understand your reasons, especially the need for a fresh start for you etc. renting certainly gave us a 'breathing space', but the cost of renting here was easily double if not treble what we would have been paying on a mortgage, criminally expensive, so check out the costs of renting an equivalent style property. Our tenancy was for a year with break clause, but We all felt v insecure living there, ESP last few months, you feel quite vulnerable(greedy landlord). If you could sell and buy on you would have security and control, but renting would give you freedom to assess your needs and finances.
Jazz that is my main worry as I don't know if I could cope with the move again!
Lots of long term investment properties around us & long term lets popular so I shall make sure it's one of those rather than someone who is renting because they can't sell. Otherwise I'll have to risk it as can't afford to maintain this property AND pay rent sadly.
guinea I know rental prices are high around here too ( Lincolnshire) compared to a mortgage but I won't have enough equity left after paying back the family (& they need it just now as their circumstances have changed-not pressuring me but it would dovetail nicely if we can make it work) to consider buying just yet. Don't really want to buy inthe location we're heading to either, its just for ease of access to school for DC's & chance to boost my income.
Also my income is rather erratic which I know might be a problem for a rental agency although I'm hoping if I can provide a guarantor plus a few months rent up front that might help.
Haven't done this for over 20 years so things have changed so much, I don't know how anyone rents who is on low income & s/employed as you don't seem a good credit risk on paper!
Although I'm loathe to I might have to look for a private landlord IF I can't meet the agency's criteria. gulp this is terrifying!
I've been nosey and seen you have pets on your profile picture (your cat looks gorgeous!) but would they be moving with you? From everything I've heard about, renting with pets just makes everything ten times harder.
We did this - sold and rented in a new area. This was 4-5 years ago now and worked brilliantly for us. It was a way of getting to know a local area, the plan was to buy quickly again but we didn't buy for 2 years. For us, the rent was less than the mortgage would have been, the landlord used an agent (which was an estate agent about 50m down the road) so responded v quickly to issues, maintained at landlords expense. Had a year's tenancy which continued on a month to month basis, never felt threatened that the landlord would serve notice (we were good tenants so it was in the landlord's interest to keep us in). Also meant that when we did come to buy, we could move quickly, weren't in a chain etc. So those are all the positives...
Negatives - if you're strapped for cash, then once you're off the housing ladder and have used the equity to pay back relatives etc, its going to be difficult to get back on without being able to save for a deposit. That means you're in rented accommodation for the foreseeable future. It worked for us as it was a means to an end for a finite period. Sounds like you need a boost to your income though and if moving areas will do that, I think its definitely worth considering.
Start looking at the rental market in your "new" area. Asking rents go up and down seasonally and within seasons, according to demand. Rentals are often available at quite short notice (advertised 4-6 weeks before available, or even later), so you can be confident letting your house sale almost go through before you sign a contract (and no-one can chuck you out of your current house if there's a last minute hitch with the rental).
Check out your legal rights at Shelter so you know what to expect, and if you can get a written list of charges up front, you won't be stung for unexpected fees - just expected ones!
Teeb- yes a dog & 2 cats so prepared to find that a barrier. I will be offering a bigger deposit & annual professional carpet clean. Most agents say its worth asking the LL as they can put a "pet clause" into the contract. Luckily they are all older pets so beyond the destructive phase but not old & smelly yet!
If you move into rental and your income is low might you qualify for any housing benefits? Just a thought... Might be worth making an appointment at CAB if you have a lot of debts.
It sounds to me like there would be a lot of psychological benefit in making a clean break and moving on.
Thanks Sussex. Yes there is def. a psychological benefit to be had I think. I have been battling depression for years so a new start would be s step in the right direction.
Hi Bossy. We are in the same position as you. I lost my mum late last year, she was the only thing keeping me here. Dh and I have decided to sell up, clear debts and rent in a new town close to MIL. We got an offer last week and are praying survey will go well because buyer has offered us a good price which will allow us to have a deposit for buying a house in the future. Only problem is that rentals in the new town are few and far between. All snapped up really quickly. We viewed one at the weekend, needs work but willing to negotiate. Nerve wracking isn't it?! Wishing you the best of luck.
You say you are in a 4 bed house currently. Personally I would sell and buy a smaller 2 bed flat in exchange. That way you can sell, pay back family, and then buy smaller with remaining. Giving you no/ a much smaller mortgage.
It will be security and affordable. And will mean if you end up with less work you can still afford
Thanks allgood good luck to you too!
forever I would as houses are relatively cheap where I'm going but I'll never get a mortgage with my inconsistant income and lack of deposit.
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