Wednesday 21 February 2007 12.41pm
The Lady Miss Jo Jo wrote:
I agree. If you are going to move into rented property, there is really no reason for you to have to sell your flat.
If you rent out the flat in MCH, the mortgage will cover the rent and the service charge, so it should be cost neutral to you. But, you will benefit long-term from the rise in property prices (Kirsty and Phil said E&C was the best place to invest in the UK). And, if you change your mind, you can always move back to MCH.
If you need the equity now, remortgage the flat for the maximum you can borrow (which is lower on Buy to Let mortgages than on normal mortgages). Buy to Let mortgages are based on the rentable value of the flat, rather than your income, so there shouldn't be a problem remortgaging and freeing up some of the equity.
FWIW, that's what I'd do.
In fact, that's what I'm doing.
Exactly what we are doing. I had my flat valued and the man who did this is an expert in this area and he said that there is hardly a better area in London to invest in, then our part of SE1. He has seen prices double in the last 3/4 years and there is room for a lot more growth.