Rent out or sell ?

[Jenkibuble]

Unsure whether this is best place to post this - have also posted under property/DIY
Youngest has finished education now - 18 , and so I am no longer tied to where I currently live. Their dad remains in the area so in holidays he and sister can still return etc. To add I bought him out the house .
My job could be done completely remotely (currently do it hybrid)
I have been discouraged from renting it out - responnsibilities mainly and non payment of rent / risk of the house getting trashed etc.
Mortgage is 800 a month and been told I could get 1200-1300 rental. The area I live in is subject to licenses for landlords so would have to pay 900 for one (lasts 5 years ) as well as rental insurance and agency commission.
The alternative is selling = is it a good time to do this . I have got the benefit of not being in a rush so could hold for a half decent price . The areas I would look at buying in would be more expensive (though can downsize on space !)
I am loathe to come off the housing ladder completely (leave something to the kids )
I have 24 years left on mortgage . I am 44
I feel I have waited for this time (to be able to relocate ) and now in so much uncertainty .
Any current / previous landlords advise etc.
TIA

I would urge you to look into and really understand the information in the post by @TimetoGetUpNow
Mortgage interest is not treated as a deductible expense but you are given a 20% credit against the mortgage interest.

If you are a higher rate tax payer or the total rents you receive make you a higher rate tax payer your tax will include 20% on the mortgage interest you pay. The reality of this can mean landlords having a tax bill on a loss.

The capital repayment part of your mortgage is never deductible and tax will be due on it.

People who think they have no tax to declare because they are charging 1k each month and their (repayment) mortgage is 1k each month are entirely wrong.

Another effect of this is that your income from property (without deducting mortgage interest) is shown on your tax return and makes your income look higher than it actually is (as you have had to pay the mortgage interest).

If your kids go to uni the help they get for living (not fees) will be means tested based on your household income. Your household income will appear as all your rent receipts less your maintenance expenses /insurance/agent costs etc. Your mortgage interest will not be deducted from this income. E.g. if you receive 15k of rent in a year and have 3k of expenses disregarded then this will add 12k to your household income and as such reduce the help your children can receive at uni - while it is actually difficult for you to lay your hands on any of that cash because most of it has gone into your mortgage.

If you are a lower rate tax payer - and will still be a lower rate tax payer when receiving rent, if your kids aren't going to uni or won't get means tested help anyway (kind of conflicts with first point) and if you can afford to pay your own rent even if your tenants don't pay theirs it's not too bad an idea.

If you go ahead please at least use a tenant finding service - I would also say a managing agent. Choose tenants that can afford to pay their rent and have good credit and references unless again you can afford it when they don't pay or damage the property.

Your current mortgage isnt buy to let, so no point using that in your figures, you need to look how much an actual BTL mortgage would be.

Yes, some lenders give temporary consent to let on a standard residential mortgage but its not guaranteed and usually has a time limit

I will remain in basic tax rate even if I rented it out.

Both kids will go to uni in September , yes. That is a valid point I had not considered !

I’d sit tight
with tax,fees ,maintenance,test certification possible interest rates rise,new laws ,having to gave house upto energy rating and possibility of nightmare tenants
that margins too tight you might not even break even

You can take a look at how different incomes affect the maintenance loan here.
https://www.gov.uk/student-finance-calculator
The loan is based on your household income for the previous year.

These screen shots show the maintenance loan for a student outside London, living away from home, with a household income of 25k, 35k and 45k.

If your house was rented out and your children were living with their dad when they come home then you should probably consider if you should declare his household income rather than yours - obviously I don't know if that's higher or lower.