Advice please - what would you do?
Myself and my husband have a house thats rented out, we bought it in 07 and lived there until May 2013. We moved house and couldnt sell due to massive neg eq at the time. Its registered with prtb, taxes paid, all up to date etc etc.
Bought for 381 in 2007
Mortgage outstanding: 290k
current value: circa 325k
mortgage is ecb +.8, payments 1150pm
rent: 1200 (will increase 4% this yr. Properties in estate renting for 1800)
It is with an agent so we pay his fee, then insurance, life assurance, prtb, maintanence etc and the tax bill is around 2k per annum.
The property costs us a fair few quid a year and i dont really understand when we will see a profit from it. Even if rent is higher i presume tax man will get most of that? As we are finally out of neg eq we could sell and make a few quid. Would we have to pay tax on any profit after selling. Husband wants to keep it long term. I have zero appetite for that and would love to be free of it (although we are lucky with great tenants right now). What would you do?