If you’re thinking about sell-to-rent, London property prices make the convincing argument even stronger than ever.
When it comes to making the case for sell-to-rent, London is a special case compared to the rest of the UK.
Anyone who owns a property in the London area is likely to have a sizeable mortgage – but at the same time, will be sitting on a potentially huge profit if they sell. To rent, they only need a regular salary and can bank a cheque for tens or even hundreds of thousands of pounds.
An example published on a message board on the Motley Fool financial advice website illustrates the point strongly. In response to a message titled "The flawed logic of the STRs" (the people who choose to sell to rent), a London renter explains why they decided to sell to rent.
The London renter sold their flat for £350,000. Previously they were paying £17,500 a year in mortgage interest. They write, "I STR'd [decided to sell to rent] in London and now rent a £350,000 property for £15,600 a year …. [And] then there's a £2,500 a year service charge that I don't pay.
Sell-to-rent in London can save £11,600 a year
"To then make it even better I have a friend I share with, so in fact I only pay £8,400 a year … opposed to the £17,500 a year that I'd pay in interest alone to own the place.
"Thus I save £11,600 every year of money that would otherwise be totally thrown down the drain in interest payments and service charges. That's before I would have paid one penny off the actual debt that I had as a mortgage."
Sell to rent: London example
To conclude the argument in favour of a sell-to-rent in London, they write, "Over 10 years I'd have saved £139,200 even ignoring the compound interest I'd have gained by putting the money I've saved in the bank. Personally I think you have to be a bit mad to be buying in some parts of London at the moment, the math just really doesn't work."
Sell to Rent with selltorentltd.co.uk
If you're caught in a financial house-trap, selltorentltd.co.uk can throw you a life-line. Selltorentltd.co.uk offers a sell to rent back scheme for those who like living where they are and want to maintain stability but are facing mortgage arrears, repossession, bankruptcy and debt or concerned financial meltdown is looming. The sell to rent scheme is an alternative to selling up and moving, allowing you to stay put and find financial solutions. Selltorentltd.co.uk will buy your home and allow you to continue living in it as a tenant. Find out more, call Sell to Rent Ltd. today on: 0800 1313 999.