BTL - sell or remortgage

[xantamisch]

I have to remortgage by March 2011, or sell.

I was planning on selling due to ridiculous rates offered and high admin fees, but nothing doing so am go through process of remortgaging - got a decent rate (2year fix 4.25% with 0.5% admin fee which is amazing by current standards)

Valuation next week, but also a viewing (only a viewing mind......).

With the remortgage I'd be in a bit of profit after all costs, but need to chuck in something like £10 - £12k to bring LTV down.

If (big if) it sold close to asking price I'd break even-ish and have some cash left over (£30k ish)

any thoughts? It rents well so I'm inclined to hold, although realise value may drop in the short term.

cheers

[MarillionFan]

I have to remortgage by March 2011, or sell.

I was planning on selling due to ridiculous rates offered and high admin fees, but nothing doing so am go through process of remortgaging - got a decent rate (2year fix 4.25% with 0.5% admin fee which is amazing by current standards)

Valuation next week, but also a viewing (only a viewing mind......).

With the remortgage I'd be in a bit of profit after all costs, but need to chuck in something like £10 - £12k to bring LTV down.

If (big if) it sold close to asking price I'd break even-ish and have some cash left over (£30k ish)

any thoughts? It rents well so I'm inclined to hold, although realise value may drop in the short term.

cheers

It all depends on the value and the rentable value. You need to calculate the rental return versus the equity/cost of borrowing versus an arbitary figure for capital growth over 3/5/7/9 years.

It aint difficult.

[Paddy]

I have to remortgage by March 2011, or sell.

I was planning on selling due to ridiculous rates offered and high admin fees, but nothing doing so am go through process of remortgaging - got a decent rate (2year fix 4.25% with 0.5% admin fee which is amazing by current standards)

Valuation next week, but also a viewing (only a viewing mind......).

With the remortgage I'd be in a bit of profit after all costs, but need to chuck in something like £10 - £12k to bring LTV down.

If (big if) it sold close to asking price I'd break even-ish and have some cash left over (£30k ish)

any thoughts? It rents well so I'm inclined to hold, although realise value may drop in the short term.

cheers

I prefer the Bacon Tomato Lettuce

[xantamisch]

BTL - sell or remortgage

I have to remortgage by March 2011, or sell.

I was planning on selling due to ridiculous rates offered and high admin fees, but nothing doing so am go through process of remortgaging - got a decent rate (2year fix 4.25% with 0.5% admin fee which is amazing by current standards)

Valuation next week, but also a viewing (only a viewing mind......).

With the remortgage I'd be in a bit of profit after all costs, but need to chuck in something like £10 - £12k to bring LTV down.

If (big if) it sold close to asking price I'd break even-ish and have some cash left over (£30k ish)

any thoughts? It rents well so I'm inclined to hold, although realise value may drop in the short term.

cheers

[Clippy]

Haven't we met somewhere before?

[MarillionFan]

Echo echo echo echo

[DimPrawn]

So you have to pile another £10 to £12K into an asset to get a return that just pays of the mortgage interest?

Lots of hassle, what's the point? House prices going to double next year? Gold probably is.

[scooterscot]

Keep the house.

I've just given up trying to sell my place after putting £2.5k down the drain in agency fees. I put the to let sign back up and got someone paying the first 6 months rent up front.

Prices may go up they may go down, it's not important for me. If a major correction is adverted then the lesson is not learnt and the pain continues for many many many people who shall just give up on the idea of owning somewhere.

Who do you think will be smiling then when that happens?

PS: Smiling only applies if you can afford 12% mortgage rates! With the amount of borrowing this country is doing I'm thinking that not going to happen anytime soon.

[MarillionFan]

So you have to pile another £10 to £12K into an asset to get a return that just pays of the mortgage interest?

Lots of hassle, what's the point? House prices going to double next year? Gold probably is.

Gold. Rubbish.

Pssss.OP. I have here some magic beans. Shhhhh.

Come closer.

I will give you 6 of these magic beans in return of £200,000.

Shhhhh.

They will pay you back the same 10 times. But don't tell Dom.

[DeludedAussie]

I have to remortgage by March 2011, or sell.

I was planning on selling due to ridiculous rates offered and high admin fees, but nothing doing so am go through process of remortgaging - got a decent rate (2year fix 4.25% with 0.5% admin fee which is amazing by current standards)

Valuation next week, but also a viewing (only a viewing mind......).

With the remortgage I'd be in a bit of profit after all costs, but need to chuck in something like £10 - £12k to bring LTV down.

If (big if) it sold close to asking price I'd break even-ish and have some cash left over (£30k ish)

any thoughts? It rents well so I'm inclined to hold, although realise value may drop in the short term.

cheers

Key question is what is the rental yield?

Whats it worth and how much can you rent it out for?

Without this you cannot make a decision