Money Lesson Single

The accidental landlord

Nadia is moving, and the flat she already owns could be let out instead of sold.

Here is the same move planned both ways, with the purchase surcharge, the interest relief rules and a landlord's running costs all priced in.

The let flat borrows at a homeowner's rate here, which a real consent to let deal is not, so the case for keeping it is shown about a fifth stronger than it should be.

Employment Property Expenses ISA Investments Savings Account

Keep it and let it

2 Goals

Become a landlord, and let the tenant pay the small mortgage down.

Try this plan

Employment Property Expenses ISA Investments Savings Account

Sell the flat

2 Goals

Sell it as part of the chain, and put the equity to work in the market.

Try this plan

Keep it and let it Sell the flat

Keeping the flat and letting it out ends ~£156.9k ahead, and the whole of that lead is the flat itself rather than the rent: selling leaves you far more that you can actually spend.