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alfie neal

Help needed! Do I hold or sell??

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Morning all. 

I’m after some advice/help.
Me and a business partner have recently finished a flip project and now want to go our separate ways and do our own things. I want to stay in property (investing not flipping).

We purchased the property for 200k and have spent 25k on the flip. After 3 valuations between £270k-£290k we have put it on the market for offers over £270k to hopefully bring as many people through the door as possible (which hasn’t worked). After 2 months of a handful of viewings agent is keen to now drop the price which is something I’m obviously not delighted to do. 

Would I be better off trying to remortgage in my name and paying my business out? There are no early repayment charges and then rent the place out? The house was designed with buyers in mind.

How much would I be able to release, as I’m hoping to have enough to buy him out and re invest, is it as simple at 75% of value or am I missing costs? 

This is my first project/purchase of any property and unsure of who to talk to and what to do. 

I’d be grateful for any advice anyone would be able to give me!

Here’s the property;


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your mortgage will be 75% of what the mortgage valuer says is the value and it may not be 270k - given its not selling then there is a fair chance its over valued. I would not rush to buy out to rent out as it may not even meet the mortgage stress test. I've no idea what the rent is where you are but it will need to be pretty high to make the numbers stack up. Personally i would be looking to sell - even if it means 260ish and then buy a place thats more geared to BTL

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The property looks fantastic! :)

A very quick look at other properties sold and there looks to be good evidence to support your asking price. Its only been on the market 2 months. I dont know your area, but it seams way to early to panic and drop the price. It looks like next door recently sold for £260k, cant find any pictures or details of that though.

If you keep it as a buy to let and remortgage. I suspect its the lenders rental stress test that will limit the amount you can borrow, rather than the LTV. So how much you can borrow will depend on what it could be rented for.

oh & you should speak to a solictor to see what stamp duty implications there are of buying your partner out.

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I think Brexit is impacting the market hugely and you have just been unfortunate in your timing. You also put it on the market over the summer which can be slow in the best of years. There are always people who have to move, even in a slow market, so hang tough & see what happens.

Good luck :) 

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Hi Alfie 

I'd speak with the agent and try to understand what is putting people off viewing. Establishing what the market wants (or percieves to be missing) is key. Once you have this information you can make any changes necessary. 

One other thing, did you not consider creating a corridor upstairs to the bathroom? This would then make it a true 2 bedroom house. Prehaps this is putting people off? Where I am based an only bathroom off a bedroom puts people off and the house if effectively worth that of one less bedroom (if that makes sense). 

Hope this helps 


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