Page 5 | To want to improve our lifestyle today and sell the property?

preparingforthepileon · 2025-10-14T12:34:25+00:00

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?

Happyjoe · 14/10/2025 15:32

preparingforthepileon · 14/10/2025 15:13

I know - we did plan to get married but covid scuppered that and we haven't got around to it as we've since had kids. I think we should go to the registry office, he thinks we should have a big party but equally he's not organising a big party so we're not married! He's coming around to the registry office idea though.

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Registry and big party - it's the fun way imo! Hope you guys get round to it soon!

Anxietybummer · 14/10/2025 15:48

I’d sell, pay off the mortgage and reinvest in a mortgage free BTL. Put that in DH name so it’s tax efficient

Wethers121 · 14/10/2025 15:49

If you want to increase your income I would slightly reduce your pension payments. A third of your salary going into your pension is massive, especially given you have other investments and a DH with a healthy pension pot. I’d do this temporarily until DH is back at work and kids in school. Then your household income will increase, London property will have increased and you’ll have better standard of living.

YourPeppyAmberTraybake · 14/10/2025 15:53

Wethers121 · 14/10/2025 15:49

If you want to increase your income I would slightly reduce your pension payments. A third of your salary going into your pension is massive, especially given you have other investments and a DH with a healthy pension pot. I’d do this temporarily until DH is back at work and kids in school. Then your household income will increase, London property will have increased and you’ll have better standard of living.

DP not DH.

Member984815 · 14/10/2025 15:59

On a much smaller scale but we are in a similar position , property we used to live in rented all through the proper channels . Lovely tenants no hassle but it's costing us more to keep it through taxes and upkeep we really don't make anything out of it , I'd love to sell but dh wants to keep it. I hate being a landlord it's not something we thought would happen but covid hampered the sale of it and now there are sitting tenants I wouldn't evict them , they are lovely people but just wish it had sold when we tried.

QuaintGreenFawn · 14/10/2025 15:59

Sorry to put a slightly depressing spin on it but you don't know what's round the corner. Yes planning for the future/retirement is important but you should also enjoy your life whilst you are relatively young and presumably relatively healthy. I have unfortunately seen family members and colleagues work hard and save hard with the intention of having a lovely retirement but either not making it or not being in a position to travel and do all the things they thought they would.

TessSaysYes · 14/10/2025 16:08

With 700k in pensions and in your 40s, that's a good start. If the finances hold up I d keep the property and wait and see. Barring some kind of disaster, you can alway revisit the decision and sell next year?
Do you have kids who might like to live in the property one day? Or you could turn it into house deposits for them, or fund travel/unis later on.etc.

Original poster

preparingforthepileon · 14/10/2025 16:11

Wethers121 · 14/10/2025 15:49

If you want to increase your income I would slightly reduce your pension payments. A third of your salary going into your pension is massive, especially given you have other investments and a DH with a healthy pension pot. I’d do this temporarily until DH is back at work and kids in school. Then your household income will increase, London property will have increased and you’ll have better standard of living.

I know it looks like a lot into the pension but I don't have a big pension (given how much I earn) and also the difference in take home between 100k and 125k is only £9.5k. I understand that paying tax is a privilege so I am not moaning but it feels more sensible to maximise the pension at this level.

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Original poster

preparingforthepileon · 14/10/2025 16:21

TessSaysYes · 14/10/2025 16:08

With 700k in pensions and in your 40s, that's a good start. If the finances hold up I d keep the property and wait and see. Barring some kind of disaster, you can alway revisit the decision and sell next year?
Do you have kids who might like to live in the property one day? Or you could turn it into house deposits for them, or fund travel/unis later on.etc.

We could wait but every year we own in the CGT bill goes up (because the proportion of time we have lived in it gets smaller) and all the while we are paying 4.5% on the current mortgage. It only really makes sense to keep it if London property is going to have another boom time. As it stands the value has been flat for a couple of years. Obviously we don't know what the future holds but I feel like our situation is sufficiently good that we don't need hunker down on the off chance the market picks up.

We do have kids but they are very young so whilst we definitely do want to help them, I feel like we could still do that in 20 years regardless.

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HarryVanderspeigle · 14/10/2025 16:26

So you have two mortgaged properties and an illiquid product as assets. Ignoring the pensions for now as you can't access them for years. Do you actually have any savings that can be accessed if you need something like a new boiler? You don't actually seem to have much readily available spends given your ages and historical income. Although none of us have as much as before kids of course!

I would personally go with selling the flat and pay off the mortgage where you live. Then you can use more of your income for saving and spending, instead of mortgage payments.

Original poster

preparingforthepileon · 14/10/2025 16:28

AlphaApple · 14/10/2025 15:07

Just read that you are not married. Ouch. You need joint and separate financial advice.

On the camper van - this is an excellent time to buy a van! Lots of people got them after covid lockdowns and are now fed up of #vanlife.

On the camper van - this is an excellent time to buy a van! Lots of people got them after covid lockdowns and are now fed up of #vanlife.

Ah!! Good intel, thanks

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Original poster

preparingforthepileon · 14/10/2025 16:29

User94816 · 14/10/2025 14:45

I'm not a financial adviser, but I've done a lot of personal research on finances myself over the past 5 or so years and find this sort of stuff fascinating!

Firstly, i'd definitely consider talking to a financial adviser and probably an accountant too if you don't have one already. For various reasons, I personally don't have a "pension", but instead put money into private investments which are similar to a pension but much more accessible. In simple terms, if you took the £700K you two currently have just in your pensions alone, and instead invested in an ETF/S&P500, year on year you'd get a much higher return (conservatively, 8% a year which, of course, compounds). I should add, it depends person to person what is best - often on MN people are insistent on 'a pension' but very few people I know in real life put their money into an actual 'pension' for various reasons. They opt instead for other investments where they can eventually live off the interest paid.

You'll need to consider tax liability when/if you sell the flat. A friend of mine just sold a property (3 bed house) worth about half of what the flat is worth, but her capital gains and various taxes on it were eye watering - in her situation i think they maybe got about 50% in reality of what they sold it for). There are ways of mitigating that liability (I'm not suggesting you do this, but you could set up a company run by your husband which 'buys' the property and then you sell via the company - this is a very basic, very dumbed down explanation of something you could do, and I don't know your exact financials and personal positions, so I couldn't advise if that was a good idea or not, but if you're already doing a property renovation, you could run some of the costs through 'the business'.) Also your DH would be 'employed' so wouldn't miss out on his national insurance stamps and could make a voluntary contribution (if he isn't already doing that).
There are stipulations on this, so if you were to sell the house, you might be liable for capital gains even if it's been your primary residence, but I know of a few people who do this and that's how they are able to renovate their houses.

As PP have said, you need to make sure that if you sell the flat, you don't just 'fritter' the money, and I'd have a plan in place where you invest it in a trust, say, for your children and then you live off the interest for your year to year expenses (ie, a holiday perhaps, but the kids still have their 'pot' there waiting when they're ready.) You'd also get around inheritance tax this way as the trust can be in their name. With 500K in a trust, you'd get about 50K a year back (you'd pay tax on it but could afford to get a bloody posh holiday out of it!)

I personally wouldn't buy a depreciating asset like a VW camper van. It's a monthly liability and how often realistically would you use it?!

That said, if you hypothetically did run your "property business" as a corporation, you can get grants from the government for buying electric cars and they'd be tax deductable.

I'd be hesitant about having a second property to let out - the B2L market isn't as good as it used to be and i worry about being a landlord in this day and age.

Thank you for all these comments and ideas - much appreciated.

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PeloMom · 14/10/2025 16:32

If you don’t see yourselves moving back to London in the next 10yrs or so I’d sell.

spoonbillstretford · 14/10/2025 16:34

preparingforthepileon · 14/10/2025 15:13

I know - we did plan to get married but covid scuppered that and we haven't got around to it as we've since had kids. I think we should go to the registry office, he thinks we should have a big party but equally he's not organising a big party so we're not married! He's coming around to the registry office idea though.

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Just get married then worry about the big party later.

Beachtastic · 14/10/2025 16:36

Oooohhhh, I'm very much a "jam today" person, OP - you never know what's around the next corner.

What a lovely jammy position to be in!

Love your username 🫣😆

Horserider5678 · 14/10/2025 16:36

preparingforthepileon · 14/10/2025 13:44

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

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I think you’re being unreasonable you have a salary many would only dream
if and have the nerve to complain you’re hard up! Reduce what you are putting in your pension by around 20k, you’re still going to have an excellent pension. Sell the flat before the government changes the rules on capital gains tax and hammers you! Finally stop being so dramatic!

Original poster

preparingforthepileon · 14/10/2025 16:41

Beachtastic · 14/10/2025 16:36

Oooohhhh, I'm very much a "jam today" person, OP - you never know what's around the next corner.

What a lovely jammy position to be in!

Love your username 🫣😆

😂

It's been less of a pile on than i was expecting tbf but maybe I've still got it coming 😬

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minipie · 14/10/2025 16:51

where you invest it in a trust, say, for your children and then you live off the interest for your year to year expenses (ie, a holiday perhaps, but the kids still have their 'pot' there waiting when they're ready.) You'd also get around inheritance tax this way as the trust can be in their name. With 500K in a trust, you'd get about 50K a year back (you'd pay tax on it but could afford to get a bloody posh holiday out of it!)

Pretty sure you can’t put money/investments in a trust for someone else but then get the interest/income yourself. Definitely not if you want it to work for IHT avoidance.

However, I agree with investing the flat proceeds in a way that generates income, and using that income to benefit your lifestyle, rather than just spending the proceeds. Ideally you’d put it in something that generates income and may appreciate in value (at least enough to offset inflation) eg equities that pay dividends.

QuaintPanda · 14/10/2025 16:58

Haven’t read the full thread.

I‘d want to sell the flat to pay off the mortgage on the house. That would make the mortgage payments available to spend elsewhere and give you security should you lose your job and there‘d be no money coming in. Or the freedom to explore different careers/ working part time for you both / set up a business. Whatever you want to try for a good work/life balance.

I‘d want to be investing at least some of the freed up mortgage payments in this plan.

Baninarama · 14/10/2025 17:12

Take the jam today and have fun. I've just had a couple of friends and relatives either drop dead or be diagnosed with something very life limiting at 60, and I think the universe is trying to tell me that pinning all your time for living on retirement is a mug's game.

ShinyAppleDreamingOfTheSea · 14/10/2025 17:19

YourPeppyAmberTraybake · 14/10/2025 14:55

Would your DP be happy to use proceeds for a joint sale to pay off a mortgage for a property that is solely in your name?

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They can transfer to joint ownership if they choose (and would assume the DH would want this), especially when paying off the mortgage with proceeds of a joint property.

Ionlymakejokestodistractmyself · 14/10/2025 17:20

Sell the flat! It's crazy paying 4.5% interest when the other place won't be appreciating in price at that rate and CGT is going up. You'd have £2.5k more a month to play with, save, whatever plus more in the bank making interest that again will probably appreciate more.

ShinyAppleDreamingOfTheSea · 14/10/2025 17:23

preparingforthepileon · 14/10/2025 15:13

I know - we did plan to get married but covid scuppered that and we haven't got around to it as we've since had kids. I think we should go to the registry office, he thinks we should have a big party but equally he's not organising a big party so we're not married! He's coming around to the registry office idea though.

Show quote history

Do the legal bit and you can have a party later if you wish. You have a lot of money floating around in quite a complex way not to have any legality around your relationship .

pinkbackground · 14/10/2025 17:28

I’d sell it and pay off your mortgage. Financial peace.

Orpheya · 14/10/2025 17:34

inamo · 14/10/2025 15:06

Am I the only one thinking, OK can't buy a camper van but I have £900k stashed away plus a flat worth £1million and asking why not?

The future is a different country. It's OK to plan for it via pensions and investments, but it's healthy to spend some now and again and it's good for the economy too!

It doesn't make any sense, does it. I know people on 35 k who live truly well and visit the USA every second year