Another cowboy found.

[Andy1733]

If we are into accidental landlord teritory now, I am one. 8 years ago, we tried to sell our old house as we were starting the build of the new one. I tried to sell the old house but it sat on the market for 3 years with no buyers in a dead market with many other similar houses also just sitting unsold. Everyone said if it is not selling it was over priced, but if we reduced the price much more we would be selling a 5 bedroom house for more than the cost of building the new 3 bedroom house, i.e. it would be costing us money to downsize, which would be just plain stupid.

So we reluctantly let the old house to a T who said he wanted to buy it in a few years. 8 years of rental income now has largely paid for completing the new build, but we still own both. And the T seems no closer to being able to buy the house so early next year we serve notice so we can try again to sell it on the open market.

I am totally fed up with having our largest asset stuck like this and with retirement now just around the corner I want it gone and the pot of money to play with.

It's sad you have seen this as a anchor but as Binky mentioned earlier in the thread. The larger houses take some shifting and as you have found out it's not a simple task of putting it on the market and it will sell.
I hope you get it sold asap m8 as it can be a real stress.
On a positive side. How did the new house turn out. Did you get it just right and most importantly. Was the Mrs happy?

From my side of the fence as an investor i would have viewed the property differently.
They would have rented it like you did but remortgaged it to get 75% of the capital out. You say 8 years which after 5 years remortgage and get probably all the capital out. So your then left with a 5 bed house which has a steady rentable income per month. Most of your cash back in the bank and still have 25% equity in the property.

 

[Andy1733]

It's more the enjoyment of completing a whole project, that appeals to me, and electrical work has become a little boring - no challenge anymore. Holiday money is about all I'm working for, plus tax advantage of having a business.

I slowed down a while ago due to arthritis in my shoulder, fortunately we have always paid off the bills and lived a comfortable but frugal life, and the wife banked a lot of the money from when solar was busy. Retiring early has always been our agenda, and it's paying off, but I see far too many tradespeople who have blown money when younger and are forced to keep working with injuries like mine, and suffering as a consequence. I don't envy them one bit.

I consider my position fortunate, but one we have worked for. Might just go plant trees to keep busy rather than flip houses. Doing something good for the planet is as interesting to me as making money, plus the exercise is always good despite the injuries

Nowt wrong with planting trees m8. Just get a JCB ****** the exercise

 

[ProDave]

From my side of the fence as an investor i would have viewed the property differently.
They would have rented it like you did but remortgaged it to get 75% of the capital out. You say 8 years which after 5 years remortgage and get probably all the capital out. So your then left with a 5 bed house which has a steady rentable income per month. Most of your cash back in the bank and still have 25% equity in the property.

I am done with mortgages, mortgage free for nearly 20 years now, both houses owned outright. I only work part time as a self employed sparky and the rental income, not very mortgage friendly and I doubt I could raise much of a mortgage even if I wanted to.

The new house turned out fine, very happy with it particularly it's high level of insulation and air tightness and low energy costs. If I can build a decent house like this as a self builder then why the hell are all houses not build to a decent standard like this? That is what makes my blood boil.

 

[Andy1733]

A lot of people see a mortgage as a chain of bad debt and we were brought up to believe debt is bad.. I was raised the same.

Now look at it as. 4 mates want to buy a house together. They say. You manage it. From the 10% profits each month we will each take 1%. And you get the 7%. If the house doubles in price over the next 10 years we only want our initial investment back. You can keep the rest
That's how I look at a BTL mortgage. The banks are happy to invest,. I'm happy to manage and the tennant is happy to rent. Even though some think they are forced too, not wanting too.

The goal posts have changed a little with the interest rates going high but all except 1 of my property are mortgaged till 2024 which is great news for tennant as the rent doesn't have to go up. Even the one that ends in march next year I've discussed with the tennant and agreed a 4% rise. Doesn't cover my cost but we're all in the same boat imo

Glad the house is perfect. It's something I've always wanted to do and I've not gotten around to doing. I would also want it as green as possible and self sufficient ..
The 18th century house I renovated had solid walls and and the roof work was a work of art but the inspection insistered on the walls ceiling and floors being insulated. Cost a fortune in kingspan and imo shouldn't have been done as old houses are not suppose to be air tight.

 

[Sharpend]

@ProDave just check the laws on eviction if a tenant, I know down here they are looking to do away with the standard eviction of I want my house back. (Section 21). Which means you have to have a specific issue with tenant to evict.

 

[Andy1733]

@ProDave just check the laws on eviction if a tenant, I know down here they are looking to do away with the standard eviction of I want my house back. (Section 21). Which means you have to have a specific issue with tenant to evict.

They are talking about abolishing section 21 or reforming it significantly next year.
Section 8 are the rights landlords have and they are considering adding sale of the property as one of the reasons. I can imagine a big shake up in the near future

 

[ProDave]

@ProDave just check the laws on eviction if a tenant, I know down here they are looking to do away with the standard eviction of I want my house back. (Section 21). Which means you have to have a specific issue with tenant to evict.

In Scotland, under the old SAT not the present "scheme"

Wanting a house back that was formerly your main residence, for your own needs is a mandatory reason for ending a tenancy, not a conditional one.