WWYD - Relocating - Sell or rent out?

[LuluLulabelle]

Ok, DH and I are relocating back to the North West. The house we live in is mine, bought when I was training. The area isn't fantastic (partly the reason for wanting to move - we want to be near good schools for DD as well as nearer to family).

I know that its going to be hard to sell with the house market as it is so I am not sure what to do.

The options, as I see them are:

Try and sell through an agent and rent in NW until we sell.

Try and rent our house out, wait to sell when house prices recover (however long that takes).

If we rent ours out and buy a house in DH's name can my income be taken into consideration?

Our mortgage company have said we can rent ours out but we have to pay a fee. I also believe we need electrical/gas certificates and to pay an agent and I am not sure I can be bothered with all that faff.
Any ideas?

You will need at least 25% equity in the house to rent it out normally and you will need to be able to show that the rent will cover the mortgage interest by 130%. You will need gas safety certificate (not sure about electrical) each year and a energy efficiency report before you get your first tenant (this lasts ten years).

The crucial question though is whether there is a demand for rental accommodation where you are: think about your street - do you often see "To Let" boards up and do they stay around for a while?

if you're not keen to rent - and if you are moving a long way away and have to have the property managed (generally 15% + VAT) then this will eat into your ability to cover the mortgage - then try selling and see what interest you have. You may end up pleasantly surprised or you may end up having to try to rent it out.

And, yes, your income will be taken into account when buying another house with your husband as long as the BTL mortgage has been properly set up and you have tenants in when you apply.

Thanks lalalonglegs, thats great.

We had some friends who wanted to rent the house but that brings its own set of complications!

Properties seem to be selling here - well, they don't stay on the market long on our street (although I have no idea why!). So perhaps we should try selling. Not many of them are rented out, the only ones I can think of have had tennants in for years so I am not sure if the demand for rental exists.

Someone recommended we try rent-to-buy. I haven't heard of this.

Do you know anything about it?

It's the same as buy-to-let but you are releasing equity in your current house via a BTL mortgage in order to fund your next home - so basically what you are considering doing.

Oh no, the guy said we get someone into our house to rent it now but buy it later. I don't know how you can tie someone to that.

p.s. that was advice from the sales person on a new build development.

me too!

To be fair, just remembered that what I was describing is known as let-to-buy rather than rent-to-buy. Not sure rent-to-buy exists outside fevered imagination of this salesperson.

sounds about right!