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Original poster

DH's job comes with a house - should we rent or sell ours?

112 replies

Catslovepies · 27/08/2022 15:09

DH is getting a new job that comes with a house. We have a house nearby already - it's a really nice house with 4 bedrooms, 3 reception rooms, a lovely garden, and the mortgage is nearly paid off. We need to figure out whether to rent out our house or sell it. If we sell it, I think we'd buy a flat in London that we could use for probably every other weekend to enjoy time in the big city, go to the theatre, etc. I would probably end up spending more time in the flat than DH because I can work from home. I love London and I think it would also be nice as far-flung friends would be more likely to come and stay, and there is so much to do there. I don't think I want to live there full time but for a bolt hole it would be great.

We do want to have a property of our own rather than keep the money in savings. DH reckons he will stay at his job for at least 5 years, and it's a very stable job. And because of the type of job it is, we wouldn't have to pay capital gains tax on our existing house when we sell it regardless of whether we had lived there recently or not.

We've never been landlords before and don't know exactly what it entails. Also I'm a higher rate tax payer and I guess a lot of the rent we received would go in taxes. Maintenance of the house would probably be more expensive than the London flat, but then we'd have to pay council tax, utilities and service charges for London. So London would be more expensive but we'd get something out of it in terms of enjoyment. It's a really tough decision and I'm struggling to make up my mind what to do. Any advice welcome, please.

OP posts:
PyjamaDuddlejuck · 27/08/2022 21:52

You would get a flat for £500k but nothing special or in a great location

Not true. You can get a nice 2-bath 2-bed in a good location for <£500k and even <£400k. If you know where to look. OP PM me if you want to know where to look 😉

FindingMeno · 27/08/2022 22:00

I would, if financially possible, neither buy the London flat, nor rent your property out.
If you can finish paying the mortgage off you have your housing security for 5 years time/ if circumstances change.

TheYearOfSmallThings · 27/08/2022 22:01

Not true. You can get a nice 2-bath 2-bed in a good location for <£500k and even <£400k. If you know where to look. OP PM me if you want to know where to look 😉

Tell us all! Because I live in a down at heel area of zone 3 and I thought it was about the cheapest borough. If there are cheaper better places I definitely need to know.

PyjamaDuddlejuck · 27/08/2022 22:19

If you can finish paying the mortgage off you have your housing security for 5 years time/ if circumstances change.

If they pay the same for the flat than the house, then they can probably transfer the mortgage and still have it paid off shortly so they will still have that security.

To the PP, unfortunately I'm not going to indicate where I live on open forum. If you want to find better places to live, see where might be possible by doing some wide searches on Rightmove or Zoopla (on at least one of them I think you can search by travel time now) within your budget and requirements, and then spend weekends getting out and about in London for the price of the daily Oyster cap to see where is nicest for you, what travel you can tolerate, and you'll find them😀

fyn · 27/08/2022 22:24

I’d keep the house and rent it out (provided you’ve lived there for more than two years due to new eviction laws) and use any profits to reinvest into a flat.

To add for posters asking, I’ve never lived in a house from graduation that wasn’t provided by an employer. First as an estate manager of large country estates, the a PA for UHNW and now in military housing.

The National Trust also rarely give houses now unless you are a house manager for security. They paid off a lot of staff pretty large sums of money to move out of tied accommodation a few years ago.

Rainbowqueeen · 27/08/2022 22:33

Check with your mortgage provider whether you are permitted to rent your current house out.

Think about where you plan to retire to. If not London, then work out stamp duty costs etc of selling current home, buying London flat, selling London flat, buying retirement home.

It might be worth a consultation with a financial adviser.

allboysherebutme · 27/08/2022 22:45

Could you rent it out and buy the flat in London once your mortgage is finished soon. X

BerryTiredMama · 27/08/2022 23:13

Nonsense, of course you could get a flat for 500k in a good location. Look at Putney/Southfields area. Lots of flats on for that price range and its a great location as someone who has lived here for over 25 years :)

Personally wouldn't sell the house but it depends, after the 5 years are up what would your plans be??

TheYearOfSmallThings · 27/08/2022 23:28

Well I took a look and although you can certainly buy a flat in those areas, I don't see anything that would tempt me if I were in my 50s and used to living in a very nice 4 bed house.

From the OP's first post, the size of her house, the fact that she's a high earner and the house is paid off, I was initially picturing a luxurious flat in central London. I could see the attraction of that, but not a starter flat in a suburb. I still think she would be better to keep the house.

BerryTiredMama · 27/08/2022 23:46

Putney is not a suburb… like at all but I understand what you mean about size. Moving to London almost always means sacrificing size/plot. A 4 bed with 3 receptions rooms would be a million plus even in the actual suburbs of london so yes square footage is the loss. The pro would be location location location!

blueshoes · 27/08/2022 23:56

londonmummy1966 · 27/08/2022 19:40

Rent out your current house, take an out of town membership of a west end private club and stay there when you want to come to town as that often works out cheaper than hotels if you visit frequently and you get the use of the large communal rooms etc.

I like this idea.

Research which one is easier to rent out. If it is the house, then do londonmummy's suggestion. If it is the London flat, then buy the London flat. If the London flat is central enough, you can do short lets for the times you are not there.

YukoandHiro · 27/08/2022 23:59

Keep the house and rent it out. The London flat market is dropping fast. We've had over a year of issues trying to sell ours (not far from clapham). By contrast private rents are rising.
You say the job is secure. The economy is very uncertain. Nothing is secure.

hanxsy · 28/08/2022 00:20

Putney is not a suburb… like at all but I understand what you mean about size.

I'm in Wandsworth & class it as the suburbs. It's not central London which is where an ideal pied a terre should be.

kateandme · 28/08/2022 05:48

IceCreamTime19 · 27/08/2022 15:45

I thought the house is to keep rather than just live in for the time he works there?!!Makes more sense haha

Show quote history

Ahaha I did too!

MassiveSalad22 · 28/08/2022 06:05

Definitely rent it out! I know loads of private school teachers and they all do this. I wouldn’t want to cram into a London flat (4 bed 3 receps house, I’m assuming a flat would be smaller) if things go pear shaped. And rental income!

Caspianberg · 28/08/2022 06:18

I wouldn’t get a flat on that budget. It won’t be very central and don’t forget lots of flats in London will come with huge annual service and maintainances charges ( probably £5-12k a year depending on flat and location).

Keep the house. Rent out. And use the rent to pay for hotels when needed in London

daretodenim · 28/08/2022 06:30

Keep the house. Rent out. And use the rent to pay for hotels when needed in London

Or join a private members club like a PP suggested.

Or doing join the PMC and then you leave yourself the possibility of staying in other towns and cities.

You mentioned the London flag would mean friends from further afield could come and visit. I have friends in London with a 1-bed extremely central place and I don't stay with them. It's not comfortable staying on someone's sofa when you're going for a weekend (or longer) away. I would take them up on their offer if they had a second bedroom. I'm guessing I won't be the only person like that so maybe useful to keep in mind for London plans. If people want to visit and you want to be hospitable, you could rent a 2-bed AirBnB to join them in and pay yourselves. But you could also arrange a weekend and split cost with friends. There are more ways to work this I think.

daretodenim · 28/08/2022 06:31
  • Or don't join the PMC and then you leave yourself the possibility of staying in other towns and cities.

PS was agreeing with Casplanberg there!

Muddledminx · 28/08/2022 06:38

tenbob · 27/08/2022 15:16

Rent out your house using a letting agent

Spend the money your make on hotels or a rental in London

Absolutely do not sell the house until he has been in the job for 2 years

Absolutely this.

pilates · 28/08/2022 06:57

Don’t sell your house - that is your security. I can’t see the attraction of a flat in London with your budget.

Liorae · 28/08/2022 07:00

Mustbemagic · 27/08/2022 17:15

Buy the London flat - you could also make income from it by popping it on Airbnb when you are not there

Do you really think you can just "pop" something on air b & b just like that?

Darkness22 · 28/08/2022 07:08

Rent the house out and rent a flat.

kateandme · 28/08/2022 07:31

If say at this moment owning a house is the best form of security we could be lucky eboughb to have.especially one you've described.i wouldn't swap that for a smaller London one.
Rent.and eventually once mortgage is gone and or enough rent massed up u could buy and have both.youd then no the areas more.amd by this time might be able to spend more time there.

Sprig1 · 28/08/2022 07:45

What might happen at the 5yr point? Might you want to move back to your current house. I am erring towards saying keep the house and rent it out. 3 reasons. What happens if the job goes wrong in the next year or so. Stamp duty/fees for buying/selling. Bearing in mind your budget for London you will not be v recession proof, we are definitely heading in to recession, how long that will last nobody knows but it is entirely possible you will lose money on a London flat you buy this year.

BrownEyedFool · 28/08/2022 07:49

I'm intrigued by the comment that Putney is not a suburb. It's an inner suburb surely?

OP if you do the flat option, consider the ease of transport to that flat from DH's work. SE London is historically cheaper (not all of course) but can be less connected and a pain to get to unless of course you are that side of London.

I put your requirements into right move and there are quite a few one beds around Pimlico/ Victoria which is close to the river or for more urban grit, spitalfields and surrounds.