AIBU to sell my rental property to reduce our mortgage?

It’s not free money. The cost is the extra £350k mortgage they are paying on the main house.

Plus tax plus risk of tenants trashing the home plus risk of getting tenants out. It’s not an easily accessible £350k once you get tenants in again, have to allow a year from decision to money if the tenants leave on time.

Far too risky in your 50s with one salaried income.

This. OP would be able to stay with the same lender and no questions asked as long as they are not behind with any mortgage payments.

I would sell

Same here, too much hassle, such a weight off my shoulders when it was sold.

I would, being a landlord seems such a hassle with one property.

I would love to sell our rental flat, it would clear the mortgage on our house and I love the idea of being mortgage free. I have to grudgingly accept that it doesn't make financial sense. The rent we get covers both mortgages and the value of the flat has steadily increased. I think keep the flat if you can.

We might eventually encourage DD or DS, or maybe both, to move into ours in 10 years or so if they don't have their own place as adults.

I couldn’t sleep with that mortgage…

Some terrible advice on this thread.

What are your outgoings? Do you have any unsecured debt? Or other savings and investments what part of the country is the rental property in. Not all postcodes are born equal. Do you have pensions? What are they worth? How much do you contribute monthly? No one can give you better advice without knowing this.

Sell, sell, sell.
Don’t forget 55 is the new 65. If you lose your job in your late 50’s that might well be the end of your profitable working years.

what @Washingupdone says. So much depends on if you’re married, strength of your relationship and any ring fencing of your prior assets. If you’re cohabiting in England, your partner is flighty, or has lots of heirs who arent also yours … well, you’d be absolutely mad to put your money into a shared pot. Too many unknowns.

I would think about selling the main property (so no CGT) and then moving into the rental.
live in the rental for a few years and then sell that as your only property.

Use the proceeds of both properties to buy a mortgage free property - cheaper than your current hose, but more than your rental value.

unless you think the non working person will pick up another job soon, it will be much less stressful please to have no mortgage. Overall you could have a better life,

Who owns the rent property? If one owns it then sells, the money will go into the couples home, latter if, a split happens in the couple, the one who own the rental has lost their money in the couple’s pot.

Sell, that’s what we did 2 years ago. We were lucky that the rental paid off all our mortgage,but I still think it’s the right thing for you. Your income and mortgage outgoings don’t tally so must be causing so much strain on your finances.

Depends on where the houses are . If London, I’d keep both of them. Sentiment is low, but ignore it, there isn’t enough land and demand outweighs supply.

Sell your rental - it’s too much hassle to be a LL these days

You don’t get a new creditworthiness or affordability check on a remortgage with the same company, you just choose a new deal

Will you even have a choice?

Have you checked yet to see if anyone will remortgage you at over 6x your salary with less than 20 working years left?

I'm guessing you will be at the higher rate of LTV too with a mortgage that high, so interest rates at the higher end of the scale and nowhere near the 4%

Best off selling the rental and reducing your risk. You can't be enjoying much of a high earner lifestyle with mortgage payments that high, decrease the payments now to enjoy your pay while you can still earn it

Absolutely not. The rental property (once you get it on the market) is free money. You keep the equity and get money in to cover your existing mortgage. I would be taking 40k on the rental and using it to get it market ready ASAP.

the moment you sell the rental you are gaining nothing, keeping it means you are gaining every month that someone lives in it

I would check first of all whether you will be able to remortgage for £800k when your joint income is £130k.

You need tax advice OP

Absolutely! I would paint a decent chunk- whatever takes your LTV under a low interest rate. Then put the rest in s&s isa’s & GIA which have interest of 6-10%. The Rebel Finance School have a course beginning tomorrow. Financial advice to empower you.

If I were you, id consider moving into the rental property and selling or renting out the bigger house. (In present market and with the renters rights bill, id be more inclined to sell). Be mortgage free, and have a stash of cash and look to retire ASAP. Did you really want to work for another 15-20 years just to pay for a house when you could have a different lifestyle without the burden of mortgage payments? Not to mention, it sounds like you don't have a big buffer for unexpected eventualities.

I sold my BTL last year. We are mortgage- (and hassle-) free now.

Yep you need to sell the rental and pay off some of your mortgage. That mortgage is massive for your age and income. It doesn’t make sense having an asset just to service a massive debt.

Doesn’t sound like you have much choice? One of ours is about 650k and it’s over 4k a month on a repayment mortgage (about 17 yrs remaining I think). You won’t be able to afford the repayments on an 800k mortgage, unless I’m missing something?