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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To want to improve our lifestyle today and sell the property?

172 replies

preparingforthepileon · 14/10/2025 13:34

I have NC for this because I am including a fair bit of financial info and I also think I am going to get a fair amount of stick. I am aware we are in a privileged position but I think these decisions of 'jam today vs jam tomorrow' are pretty ubiquitous and not income / wealth dependant (within reason) so I am hoping for some useful advice (and a different perspective) as well as the expected abuse

I work and my DP doesn't. I earn about 140-150k a year and he used to earn the same. We have two small kids. We don't live in london anymore but have a flat there which we used to live in. It's been valued at £1.35m and we have a £625k mortgage on it. At current interest rates it doesn't really generate any income once we have maintained it, paid the agent etc. but has appreciated in value a fair bit since we bought it.

The mortgage on our PPR is about £470k / 2.5k a month and I put everything over 100k into a pension so my take-home is about 5.5k.

We can just about manage (we don't have any car loans) on my salary with the current situation but it's tight.

I think we should sell the flat in London, pay off our current mortgage and invest the rest. That would give us a great standard of living now, even though only one of us is working. He thinks we should try and hang onto it. I am not a spendthrift but I am more 'jam today' and he is more 'jam tomorrow'.

Just to add we are both in our 40's (him late, me 40). He has about 500k in a pension, I have about 200k (I've only been contributing to mine for a few years) but we also have about 900k in other investments.

So my view is our situation is good and we should enjoy the lifestyle a bit more now.

What do you think? (hard hat on)

Am i being unreasonable to want to sell the property?

OP posts:
didntlikeanyofthesuggestions · 14/10/2025 13:37

Why doesn't he work? Is he planning to work again?

childofthe607080s · 14/10/2025 13:39

Slightly puzzled about what you are not doing now that would be enabled by the flat sale ? You have an amazing income and more than enough savings to replace a dodgy boiler …it almost sounds like it’s not a cash flow problem but a willingness to spend problem
?

CinnamonCinnabar · 14/10/2025 13:40

You should talk to a financial advisor- the capital gains tax will be massive.

foobio · 14/10/2025 13:41

What is your mortgage rate on each property vs what return are you typically generating on your investments after tax? If you're earning more than you're paying on the mortgage, then it doesn't make sense to pay it off.

(This wouldn't necessarily be the case if you didnt have much in savings, as you need to have enough to ride out a market crash)

Bavariamaria · 14/10/2025 13:42

You're putting a huge amount into your pension.

Why doesn't he work?

Is the rest of your income going on nursery fees/bills?

winter8090 · 14/10/2025 13:43

I think living on 100k with the level of debt (mortgage) isn’t giving you much jam today.
That said you have sound investments.
i would be uncomfortable carrying the level of debt on your current income therefore I would probably sell the property.

noidea69 · 14/10/2025 13:43

Do you have kids or just the 2 of you?

Original poster
preparingforthepileon · 14/10/2025 13:43

didntlikeanyofthesuggestions · 14/10/2025 13:37

Why doesn't he work? Is he planning to work again?

He's looking after the kids mainly and managing a bit of renovation work. the youngest goes to school in 3 years. Obviously he could work now but we've decided it better for the whole family if he takes time out and spends more time with the kids. I guess he will go back to work but I am not sure when and how much.

OP posts:
Original poster
preparingforthepileon · 14/10/2025 13:44

noidea69 · 14/10/2025 13:43

Do you have kids or just the 2 of you?

2 preschool kids - the youngest will go to school in 3 years

OP posts:
Original poster
preparingforthepileon · 14/10/2025 13:44

CinnamonCinnabar · 14/10/2025 13:40

You should talk to a financial advisor- the capital gains tax will be massive.

We lived in it for a lot of the time so it wont be too bad.

OP posts:
TooExtraImmatureCheddar · 14/10/2025 13:48

My answer depends on your DH’s future plans. If he isn’t intending to go back to work, or not much, I wouldn’t sell for jam today. If he’s intending to go back at approx £150k pa, then I would be more inclined towards the jam now.

CinnamonCinnabar · 14/10/2025 13:48

preparingforthepileon · 14/10/2025 13:44

We lived in it for a lot of the time so it wont be too bad.

Show quote history

That could sway me to sell sooner - depending on how the market is just now for that type/location of flat. Is it likely to be easy to sell at a good price?

minipie · 14/10/2025 13:48

I see the flat generates zero net income after costs. This is unlikely to change, if anything being a landlord will get more expensive. So it depends on what you think the chances are that the future increase in value of the flat (net of CGT) will beat the net value you could get from that capital invested elsewhere.

Personally, I think the days of big property price rises are over. I also think it’s unhelpful to have so much money tied up in one single illiquid asset. But that’s just my view.

However. Right now is not a good time to sell anyway - nobody is buying expensive properties due to all the possible property taxes being floated. Wait till after the budget and reconsider. The equation may look rather different post budget, depending on what is brought in.

Original poster
preparingforthepileon · 14/10/2025 13:49

childofthe607080s · 14/10/2025 13:39

Slightly puzzled about what you are not doing now that would be enabled by the flat sale ? You have an amazing income and more than enough savings to replace a dodgy boiler …it almost sounds like it’s not a cash flow problem but a willingness to spend problem
?

Good question - we couldn't afford an expensive holiday at the moment on my income. I'd like to visit family abroad next summer in the US but realistically it'll be 10k and we can't afford that out of my salary. I'd like to buy a VW campervan but we can't afford to do that. I'd like a few more meals out and possibly a few weekends away. Pre kids and when we were both earning, if I saw something I liked and it was a few hundred pounds I'd buy it. I can't do that now.

I'd also like to contribute to pensions for the kids but we can't do that out of my income.

OP posts:
orangemapleleaves · 14/10/2025 13:50

Are you going to live in it again? If there might be a time in the future you feel like living in London I would hang onto it. Or your kids might want to live there one day for work. Also is it likely to suddenly cost you a huge amount in repairs? Or is it a solid property?

I am probably cautious because I know that money can disappear very quickly once liquid and not tied up in property if there's someone in the equation who is big on living it up eyes husband and kids

Bavariamaria · 14/10/2025 13:51

What is the £3,000 going on? Is your husband looking after the kids? That seems a huge amount if doesn't include any school fees.

Original poster
preparingforthepileon · 14/10/2025 13:52

CinnamonCinnabar · 14/10/2025 13:48

That could sway me to sell sooner - depending on how the market is just now for that type/location of flat. Is it likely to be easy to sell at a good price?

Show quote history

It's a good flat in a good area and its not leasehold. It's not a good market but it will sell. every year that goes by our CGT liability goes up (because the proportion of time we have lived in it goes down) even though the price isn't really moving at the moment.

OP posts:
FirstdatesFred · 14/10/2025 13:52

Do your other investments of £900K not generate income you can use to have a better lifestyle and more wriggle room now?

But basically you'll be fine if you sell, you'll be fine if you keep it.

Personally I think I'd like to be without the hassle and would sell now, but OTOH if you have investments already makes sense to have some money in property and keep thing diverse.

Original poster
preparingforthepileon · 14/10/2025 13:54

minipie · 14/10/2025 13:48

I see the flat generates zero net income after costs. This is unlikely to change, if anything being a landlord will get more expensive. So it depends on what you think the chances are that the future increase in value of the flat (net of CGT) will beat the net value you could get from that capital invested elsewhere.

Personally, I think the days of big property price rises are over. I also think it’s unhelpful to have so much money tied up in one single illiquid asset. But that’s just my view.

However. Right now is not a good time to sell anyway - nobody is buying expensive properties due to all the possible property taxes being floated. Wait till after the budget and reconsider. The equation may look rather different post budget, depending on what is brought in.

Thank you.

I agree - we are talking about it now but the budget will impact things and we won't be putting it on the market before then regardless.

OP posts:
minipie · 14/10/2025 14:00

Bavariamaria · 14/10/2025 13:51

What is the £3,000 going on? Is your husband looking after the kids? That seems a huge amount if doesn't include any school fees.

This. You have £3k a month after mortgage pension and tax, and you (presumably) have no childcare costs or school costs. Where is the money going if you have no headroom for holidays, treats and weekends out? Are you really spending £700+ a week on bills and food? Are you paying for some expensive hobbies or lifestyle services or what?

If your DH wants to keep the flat then I would be suggesting he needs to find ways to shave the budget elsewhere so you can afford more treats; or he needs to go back to work.

Original poster
preparingforthepileon · 14/10/2025 14:01

Bavariamaria · 14/10/2025 13:51

What is the £3,000 going on? Is your husband looking after the kids? That seems a huge amount if doesn't include any school fees.

Household bills - 500
Nursery - 400
Food - 600
Cars (insurance / maintenance) - about 250
Travel (to london once a week) - 400

That's a little over 2k then petrol, activities, trips, meal out, buying clothes or equipment for the kids easily eats up the rest.

As I say, we can manage but it feels unnecessarily tight given our broader financial situation (IMO)

OP posts:
childofthe607080s · 14/10/2025 14:02

But you have 900k in investments - that’s what you could use for some big purchases like vans and posh holidays?

then the question is - which is giving the better return overall the flat or the investments and that should answer the question which is better using for the big fun stuff

like you have already saved it so why are you not spending some ?

AlphaApple · 14/10/2025 14:04

1000% sell. You will still have investments and tbh property is becoming more and more unattractive. The government is threatening to tax rental income even more, and CGT relief is going down.

Is your H thinking you might live in it again one day?

Original poster
preparingforthepileon · 14/10/2025 14:05

@childofthe607080s @FirstdatesFred

Sorry - I should have said. The 900k is not liquid and doesn't generate in income. I don't want to go into details. I included it because I appreciate our broader financial situation is relevant but from a cash flow / liquidity perspective it can be ignored.

OP posts:
Original poster
preparingforthepileon · 14/10/2025 14:06

AlphaApple · 14/10/2025 14:04

1000% sell. You will still have investments and tbh property is becoming more and more unattractive. The government is threatening to tax rental income even more, and CGT relief is going down.

Is your H thinking you might live in it again one day?

Not really - he just thinks it would be better financially to hang on to it and keeping investments / spending less on day to day living is more his default position.

OP posts: