14:59 PM, 19th November 2013, About 10 years ago 5
I own a purpose-built first floor flat in a block of just 8 in St Albans, two bedrooms, 1 en-suite.
It was purchased in 2001 for £140k. It is rented for £800 but the mortgage, which is BTL interest only is £724 and management fees are £113. It’s had the same tenant for seven years and there is no letting agent involved. I managed to visit it recently for a gas check and it’s not in great condition – carpets need replacing and it could do with bath and kitchen goods etc, nothing major.
I took some equity out a long time ago and the current loan is £145k. RLA advised leaving as is because the tenant pays and there are no voids, or asking him to pay a bit more (market rate is probably £900 to £950 but he isn’t responding to that).
The problem is that many two bedroom flats have been built in St Albans over the past 10 years and most are closer to the station and a better spec than this one. Only one other flat in the block has been put on the market in that time and that only sold for £185k quite recently. I’m wondering if actually this is one to sell as I’ve learnt a lot since I purchased it and started doing BTL more seriously. The equity release after Capital Gains would be enough for a decent small HMO with a good yield.
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