I may have failed to grasp something here, but it seems you are saying that a mortgage will cost you £800 - £850 monthly and your expected income from rent will be either £704 or £630 monthly, depending on how the letting is managed. In addition, you will have to pay tax on that income, after deduction of allowed expenses.
I can't see the point of doing this. You should expect to make a reasonable profit of around 5% p.a. or near.
Also, beware the possible assumptions here: "They will also cover any damage, beyond wear and tear." Are you saying you will not take out your own insurance on the house? It will be covered if it burns down? And "wear and tear" can be tricky. In letting property, a far greater amount of wear and tear is regarded as acceptable than I would expect in my own home; for example, many landlords expect to renew carpets every five years. Redecoration is also required far more frequently than in an owner-occupied property.
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