I have moved into my girlfriends house and i am unsure what to do with my appartment in Derby City Centre. I was preparing to rent it our on a corparate let basis through a letting agent. Having looked into the implications it seems as though the equity in the property would be subject to 40% tax making it very difficult for me to gain anything from holding on to the property and hoping the property value increase offsets the losses by taxation. This is made worse by the excessive cost of arranging the mortage 3% and the fact that the lenders want 100-125% of the rental plus the rental cost and chance of damaging the property.

The appartment is a 1bed but very high spec penthouse in the city centre in a good location.

Im thinking of cutting my loss and selling even thouh the market is poor.

Has any body experience simalar situation or have any advice that could help.

Thanks for your inputs

I'd have a chat with an accountant about tax implications - it looks to me like you're getting confused on your own actual liabilities.

Also, 3% arrangement fee for a mortgage?? Who on earth is quoting you that? Also, if you already own the 1 bed flat then wouldn't you already have a mortgage on that??