Sell or keep for the long term picture?

Hi Lu,

Your personal circumstances, attitude to risk and future plans are the biggest factors we can’t judge.

However, this property is certainly not an income generator so it is down to how you think it will perform in terms of capital appreciation.

If you do sell at any stage you need to consider Capital Gains Tax but you will qualify for PPR relief as I assume it was your main residence, please see full details here >> https://www.property118.com/capital-gains-tax-relief-on-a-property-you-have-lived-in/

Also regardless of profit or loss you still need to inform HMRC and complete a tax return for investment property. It is a classic and common mistake with accidental landlords not to do this. If you haven’t I believe they have an amnesty for landlords that did not realise.

Why is the mortgage so high on £60k, is it repayment or interest only?

What about remortgaging to a buy to let interest only, with a lender that’s has no income criteria like the bank of Ireland for one, there are others, this will give you some breathing space to afford the maintenance. Go long term 30 years and every time your mortgage expires for example 2 year fixed. Product switch and extend the term again to 30 years. You can do this till you 50 years old because I believe they only lend till 80 years old . 50 + 30 = 80 years . They may go 85 years one day. Then you can sell in the future and live of capital gain in retirement or if you inherit you can pay down the mortgage and live of the rent. Remember assert inflation will always outstrip wage inflation, if fact wages have declined in real terms over the last 20 years. Personal I would also try to keep an asset…

@Paul,

http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/11510753/Buy-to-let-investors-get-mortgages-till-theyre-aged-105-while-ordinary-homebuyers-are-too-old-in-their-50s.html

Britain’s biggest building society offers mortgages to buy-to-let borrowers aged 105

Reply to the comment left by “Monty Bodkin” at “07/03/2017 – 13:49“:

Thanks, I’ll enjoy reading your attachment this evening. This is good news, why pay the Banks bank at all, inflation erodes debt, that’s another 60 years of inflation for me. My loan wont be worth anything in 60 years it will be like the old £1 note, worthless..
Thanks again….

Lu,
there is a lender with no minimum income requirement, free valuation, free legal service and an interest rate of 1.95% Discounted for 2 years, on an interest only basis, giving a payment of £97.50 per month. Would this help? Full cost over 2 years is £2,375. The Bank of Ireland mortgage previously mentioned, whilst very good, has arrangement fees and would cost you an extra £1406 over the same period.
Other criteria applies of course, but if you would like to check this out further, please contact me through the link on my profile.

Hi, Thank you all for your comments. I will take some time to have a think about each of them. Lu