Immediate Equity Release: Selling your home allows you to access the equity tied up in the property, which can be used as a deposit for your new home or to reduce your mortgage.

Simplified Financial Commitments: Managing one mortgage is easier than dealing with two properties, reducing the complexity of your financial situation.

 

Avoid Landlord Responsibilities: Renting out a property comes with challenges, such as tenant management, maintenance, and compliance with landlord regulations.

 

No Risk of Property Depreciation: If the housing market declines, you won’t risk losing value on a property you still own.

 

 

 

Missing Out on Future Appreciation: Property values tend to increase over time, and by selling, you could lose the opportunity for future capital growth.

 

Transaction Costs: Estate agent fees, solicitor costs, and potential capital gains tax if the home is not your primary residence at the time of sale.

Lack of Rental Income: Selling means you won’t benefit from passive rental income that could supplement your finances.

 

 

 

Potential for Long-Term Gains: If property prices rise, you could benefit from increased equity while still owning your old home.

 

Additional Income Stream: Rental income can contribute to your mortgage repayments or provide extra cash flow.

 

Flexibility: If your upsizing plans change, you still have a property that you can move back into or sell later when the market is more favourable.

 

Tax Benefits: Mortgage interest and some maintenance costs can be offset against your rental income for tax purposes.

 

 

Becoming a Landlord: You’ll need to comply with UK landlord laws, including safety regulations, tenant rights, and rental property maintenance.

 

Risk of Problem Tenants: Late payments, property damage, and void periods (when the property is vacant) can impact your income.

 

Extra Mortgage Considerations: If you still have a mortgage on the property, you may need to switch to a buy-to-let mortgage, which often has higher interest rates.

 

Capital Gains Tax (CGT) on Future Sale: If you decide to sell the property later, you may be liable for CGT if the home is no longer your primary residence.

 

 

 

Current Market Conditions: If house prices are high, selling may be the best option to maximise returns. If the market is sluggish, renting out your property could be a better choice until conditions improve.

 

Your Financial Situation: Do you need the equity from your current home to afford the new one, or can you manage without selling?

 

Your Risk Tolerance: Can you handle the responsibilities and uncertainties of being a landlord?

 

Mortgage Considerations: If your mortgage has high early repayment fees, selling might not be financially viable in the short term.

 

 

 

There’s no one-size-fits-all answer when deciding whether to sell or rent out your property while upsizing in the UK. If you need immediate capital and want a hassle-free move, selling might be the better option. However, if you can manage a rental property and want to build long-term wealth, keeping your existing home as a rental could be a great investment. Whether you decide to sell or to rent out, our award-winning team can help with both! Get in contact through the number below:

0121 681 6327