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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

AIBU to sell my house?

66 replies

coffeelover39 · 01/08/2019 09:48

DH and I took out a 25 year mortgage to buy our flat in London three years ago and have two years left on the current fixed term.

When we reach the end of the term in 2021, assuming the value of the flat is the same as when we bought it, we would make approximately £200k if we were to sell it and rent.

I know there are a lot of benefits to owning your own home and there's no way DH would let us do this anyway - but AIBU to fantasise about selling up and banking the £200k?

I can't help thinking of all the lovely holidays and treats we could have that we can't afford at the moment.

We both earn a decent wage and can cover the mortgage payments, but we can't afford big holidays or a car.

Downsizing isn't an option as we're at the lower end of the market as it is - and we don't want to leave London. Increasing the mortgage term isn't possible either due to our ages.

Any thoughts?

OP posts:
Wishihad · 01/08/2019 10:38

But I do think that life is for living so why spend it tied to a property?

Because you need a home? Perhaps a top up in retirement? It's good to have a back up plan?

Once the 200k has gone, what happens then when you are spending a fortune on rent every month.

Living mortgage free will enable you to top up pensions, save more etc.

What's the point in paying a fortune in rent and having nothing asset wise in a few years?

Untamedtoad · 01/08/2019 10:43

I don't think yabu to dream of this, and have had similar thoughts myself. We moved up the property ladder last year and bought a house at the top end of our budget. I adore our house, and the mortgage payments aren't that bad, but sometimes I dream of selling up and banking the equity we have which is about 150k, so we can live a nicer lifestyle. DH would never agree, and I know it wouldn't be a great long-term solution, but money is tight right now, and it's frustrating to know we have so much tied up in the house. We also extended our mortgage over a reallllly long term to keep the monthly payments down, so not as if I can even see an end in sight, and couldn't consider an equity release. I know I should be grateful we're on the property ladder when so many friends can't, and this is our second owned home, but sometimes I think renting and freeing up the cash would be so lovely. In reality probably not so much though! Maybe for you, considering your mortgage term isn't huge, extending it could reduce your payments each month, freeing up a bit of cash? Or is moving away from London an option? You could probably get a similar property for a lot less and free up some equity in the meantime, obviously have to factor in the huge cost of moving though.

Original poster
coffeelover39 · 01/08/2019 10:45

If you are both working and not paying rent or mortgage the money you save is that you use for holidays and treats.

Eh? We will be paying rent or mortgage!

What's the point in paying a fortune in rent and having nothing asset wise in a few years?

We won't have assets but we'll have money to spend on great holidays and experiences. If you can afford to do both then great, but we can't unfortunately.

OP posts:
IncrediblySadToo · 01/08/2019 10:48

YANBU to dream about it

But you’d be an absolute fucking idiot to actually do it

Honestly you’ve been very lucky to buy two properties that will give you good returns don’t go throwing that away for a fucking holiday

Be grateful your DH has more sense.

Tennesseewhiskey · 01/08/2019 10:49

Eh? Wewillbe paying rent or mortgage!

I dont think you are being clear.

We won't have assets but we'll have money to spend on great holidays and experiences. If you can afford to do both then great, but we can't unfortunately.

Yeah and that's amazing. Planning on having kids, with little to no security?

What if one of you becomes ill and you cant work? And you cant afford your rent? Which will be more than a mortgage.

Experiences are great. Unfortunately, swopping it for security, is often a silly idea

BlueSkiesLies · 01/08/2019 10:49

We won't have assets but we'll have money to spend on great holidays and experiences. If you can afford to do both then great, but we can't unfortunately.

Huh?

The mythical £200k is a finite amount though, which you won’t be able to replace if you’re spending income on rent and the £200k on ‘treats and experiences’.

Then in 30 years time when you’re trying to retire... and you’re rent is crazy high and you have no savings.... yeah, sounds great. Crack on and enjoy a few years of ‘treats’ 🤨

Wishihad · 01/08/2019 10:54

Private renting is great and not at all expensive.

It's not like landlords can decide to sell, leaving you have to face moving costs and facing every increasing rents.

Its not like some people end up moving every couple of years because their landlords sells up. Oh wait.....

I am sure that experience will eat into your 200k.

OP, I do get it. I am the same. I have a property with a decent amount of equity.

But I bought for security. That hasnt changed

Original poster
coffeelover39 · 01/08/2019 10:56

I dont think you are being clear.

Well, I did say in the OP that we would sell it and rent, but apologies if that wasn't clear.

What about a PP's suggestion - we use £100k to fund a nicer lifestyle and the other £100k to buy a small retirement property somewhere cheap?

Anyway, like I say we'll never actually do it. But a girl can dream!

OP posts:
hadthesnip2 · 01/08/2019 10:58

Hi OP.

There are 2 separate issues here.

  1. If you sell & rent, using the £200k for luxuries then you will be renting for evermore. The 25 year mortgage was just that. 25 years. After that time you wont have anymore housing costs. By renting you will have housing costs for the rest of your life.
  1. The £200k. When you moved out Saudi you out down a £160k deposit. Why..?? If you want your luxuries& holidays then why didn't you hold back some & put down a lower amount. You had a great big wad of cash right there then.

I expect the answer is that you needed all the money to get you a bigger property & your incomes wouldnt stretch to a bigger mortgage. Is that right....??

My answer is for you to look at remortgaging when you're at the end of your 5 yr rate & increase the mortgage by taking out some of the equity (assuming your financial situation hasn't got worse in those 5 years & your incomes have gone up).Or downsize. Dont sell up & rent just because you think you have £200k available.

Wishihad · 01/08/2019 10:59

Well, I did say in the OP that we would sell itand rent, but apologies if that wasn't clear.

Or you could be mortgage free. You will never be rent free

What if you cant get a retirement property for 100k? Do you mean a buy to let? Or trying to get a mortgage when you retire?

You will own a buy to let, but spend a fortune in rent?

Original poster
coffeelover39 · 01/08/2019 11:03

Like I say, it's just a silly fantasy really and not a great idea in the real world. I'm glad that a few other posters do at least see where I'm coming from though!

OP posts:
Yabbers · 01/08/2019 11:26

The idea of entering old age with no equity in a house and your savings gone is not attractive

I have elderly relatives who found themselves in that situation. They had to move from the lovely big 3rd floor flat they had been renting their whole married lives because they couldn’t manage the stairs.

With no equity, they ended up having to rent a tiny ground floor retirement flat. They are not happy there at all but are trapped.

Poetryinaction · 01/08/2019 11:45

Can you extend the term of your mortgage? Then you'd pay less each month and have more disposable income. But essentially, at retirement age you would hopefully have a lot more than £200k to spend or pass on.

Hont1986 · 01/08/2019 11:48

Surely once the mortgage is paid off, you will have more disposable income per month to use for holidays? What is the point selling your house to get a lump sum to use for holidays, when you will still have to find money every month for rent?

bernietaupinspen · 01/08/2019 12:45

Eh? We will be paying rent or mortgage!

You said you would have paid off the mortgage in 5 years. Forgive me for thinking you were talking about selling it in 5 years, as per the figures you gave.

Almostfifty · 01/08/2019 12:54

How about re-mortgaging, adding on £10,000 to the mortgage and having a few good holidays with that?

Original poster
coffeelover39 · 01/08/2019 13:33

You said you would have paid off the mortgage in 5 years.

No I didn't - I said we took out a 25 year mortgage three years ago and that we have two years left on our current fixed term.

OP posts:
Original poster
coffeelover39 · 01/08/2019 13:34

How about re-mortgaging, adding on £10,000 to the mortgage and having a few good holidays with that?

We can't extend the mortgage unfortunately due to our age!

OP posts:
NewName54321 · 01/08/2019 14:01

Start saving. £10 per week each is £1000 by the end of the year. £3000 by the time the fixed-rate finishes and you would have been buying that holiday.

Original poster
coffeelover39 · 01/08/2019 14:04

Start saving. £10 per week each is £1000 by the end of the year. £3000 by the time the fixed-rate finishes and you would have been buying that holiday.

Thanks Newname. It really adds up, doesn't it?

OP posts:
RonniePasas · 01/08/2019 14:24

This reply has been deleted

Message withdrawn at poster's request.

bernietaupinspen · 01/08/2019 14:27

You said you would have paid off the mortgage in 5 years.

No I didn't - I said we took out a 25 year mortgage three years ago and that we have two years left on our current fixed term.

To be fair OP, a lot of your posts are misleading. I took the below to mean that you would have paid off the mortgage in 5 years, because that is exactly what you wrote.

So £160k plus the £40k we'll have paid off the mortgage in five years = £200k.

hadthesnip2 · 01/08/2019 14:30

@coffeelover39.

You dont need to extend the term of your mortgage. What I & @Almostfifty have advocated is simply releasing some of the equity. You didn't answer my earlier question either - when you bought this property why did you put down such a big deposit...?? Why didn't you keep back £20k for holidays etc..

As an aside this is always my response to those people who have this over powering urge to pay off their mortgage asap by making overpayments. Better to put the extra money into a savings account & when its built up into a decent lump sum then use it to pay a chunk off the mortgage if you want to. However, you may find during that time that something else crops up that you need the money for. It's all well & good paying off your mortgage early & having equity in the property, but getting at the equity isn't as easy as popping into the bank & drawing out £10k when you need it. What are you going to do.......sell off a few bricks here & there...??

Original poster
coffeelover39 · 01/08/2019 14:34

No Bernie - I didn't write that I'd have paid off the mortgage in five years. What I wrote was this:

"Plus the £40k we'll have paid off the mortgage in five years".

You clearly read my sentence wrong!

OP posts:
bernietaupinspen · 01/08/2019 14:35

I know I did. I just said that.

I'm not the first person to find your posts slightly confusing though, so rather than acting all defensive, perhaps be a bit clearer about what you mean, because that sentence absolutely could mean that you will have paid off the mortgage in 5 years.

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