Sell flat to clear main home mortgage?

[Sounbelievablydull]

Would really value an objective opinion on this.
We have a 200k mortgage on our main house.
W.E also inherited half a flat a few years ago and bought my sister out of her share.
This flat is now worth approx 200k
W.E have been renting it out but by the time we pay tax letting agent and end less endless bills for this flat we really only just break even.
I am keen to sell it if We can find a buyer and pay off a chunk of our mortgage. Give the kids a bit for deposits etc.
My husband thinks W.E should just hold on to the flat as it’s an asset and would be a good source of income when we retire.
The flat is in an outer London borough where prices have always been low.
Any thoughts gratefully received - I do realise how fortunate we are re this .

If it is only just covering costs, what happens if you get the kicking that most landlords get eventually? Do you have rent guarantee and legal cover that works?

Your own house is the asset. When the current tenant decides to leave, sell up. Costs and risks for landlords are only going one wah.

Just covering the costs sounds like a terrible location for such a large investment. As it’s unlikely to make you any money for a few years (either through rent or capital appreciation), I’d consider investing elsewhere. You’ll need to see how much you’ll get stung for CGT and factor that in. I’d your mortgage rate is low, I’d probably look towards investing the pot rather than paying the mortgage off. For example, Look at your pensions, ISAs etc.

Turn it around and ask yourself the question...

If you were mortgage free on your main home, would you buy the flat?

If not, sell it. You can always buy a property to rent out in the future, ideally without any mortgage.

I would keep the flat, it would make a great retirement earner. Also house prices might fluctuate but rent prices will either stay the same or rise..