Merging properties with DP - is this a reasonable plan?

[futurebristolian]

DP and I currently live in London. We each own a property. We would like to move to Bristol. We would like to rent in Bristol before we buy to make sure it's right for us.

DP plans to sell his property now. My fix term mortgage doesn't run out until 2027. I plan to rent my place out until my fix ends. We will rent a place until I sell. After mortgage payments, management fees and income tax I will break even. I can then put what I currently pay for my mortgage towards a rental + DP's contribution. Budget will be in the region of £2000 - £2500 but all the better if we don't need to spend this much.

Added to this is that I currently have to be in the office two days a week and we would like to have a baby.

Current thinking is that, if we are lucky enough to have a baby, once I am back to work after maternity leave (6 months) I will drive to my parents in the cotswolds once a week with the baby. I will commute by train to London from there two days a week and my parents will look after the baby. I'll then drive back to Bristol and wfh for the rest of the week with baby in nursery. DP is able to wfh full time.

Does this seem like a reasonable plan? Is there a better way of doing things? Is there anything I have missed?

Sounds like an utterly exhausting prospect.

Why aren’t you getting married?

The Cotswolds is quite a big area. How far are your parents from Bristol?

When is the Bristol office opening?

This!!!

Why are you not answering the marriage question?

Your plan sounds ok but I would check that you like Bristol before ttc and think about where you are going to buy unless you are older, even then i would make the move before ttc, then start.

Have you considered areas yet and station access. Considering the location of your parents and the London office situation I would personally suggest north Bristol for easy access to Bristol Parkway and the M4. Central Bristol is very tricky for car owners. I would suggest where I live, perfect for families and motorway access, but our station still hasn't been built yet (2026 so they say, but it was meant to be 2023!)

Only on the increase in value after you stopped living there. Might be worth getting a valuation at that point.

I think you may find that a lot more challenging in practice than in theory.

Also make sure you are legally and financially fully protected.

This plan is so much better. Good luck!

Don’t forget to factor in that the rent you receive will be taxable income. Depending on your bracket you might be paying 40% of it in tax. You can offset management expenses but not mortgage capital payments (and only some of the mortgage interest).

And yep CGT too! So your revised plan sounds better 👍

It's a plan and I can see the attraction. My feeling though is that there are a lot of unknowns.

You don't know if you will like Bristol although my DD lives there and loves it. When is the office likely to be up and running and are your employers open to you transferring?

I can see why you don't want to pay the ERC. If you do move before the fixed rate expires can you port the mortgage instead of renting your property out which comes with its own risks.

You may not get pregnant immediately and commuting from Bristol to London with morning sickness or just normal pregnancy issues may be a pain.

Your parents doing childcare for two days a week might work providing they are healthy and willing to. The Cotswolds are not that far from Bristol so why don't you move nearer them? That would mean both London and Bristol are commutable from there and if you do have a baby you won't need to decamp from home 2 days a week? That would also solve a preschool issue in that most kids are better going to preschool near their home.

So whilst I can totally see that moving out of London is a good idea, we did it too when our children were 1 and 2 I think really thinking about your long term plan and being open to doing the move slower would make sense.

1st plan is madness
2nd plan better

Get married if you are having a baby; whatever happens. Get married.

Second plan is better - the first plan was absolute madness. You really should include getting married before TTC though.

Second plan is much better. Baby is in with you for the first 6 months (sometimes longer) but when you have a child you know what you want in a house to make it easier for you. So if you want to move out of London then, you’ll know what you want in your future house and be making sure you take into account schools.

I agree, second plan makes much more sense. I also think that a flat with a good terrace sounds great for a small baby, the only thing is that you’d want to make the terrace safe for when the baby starts to walk/ climb but that’s usually after 1 at least. Good luck with it all.

I agree that marriage would get all the legals tied up for you. If you don't want or can't afford a wedding just skip that and just to the marriage. Marriage and wedding are two different things; one is massively important for your future security and rights, the other is just a nice day/afternoon.

But it's so, so important to protect yourself before you have children.

No move until the Bristol office is open. Companies are changing plans all the time and they might settle on something else and you’d be in trouble then.

You sound young. What does DP do for a living and what do you do? You don’t need to provide job titles but domains. If he WFH because he has his own business that is one thing but if he is WFH because he currently works for a company that allows that, the future is uncertain.
What does distribution of income look like now and in the future. Can this work if he is the main earner.

The best marriage advice I was given was by an old boss and he said “make sure you build a life together that you can both live alone.”