Is It Worth Putting In Central Heating?

[Scarlett]

I have a 2 bed maisonette which is rented out. It's in a not very nice area so is not worth much- maybe £105k. I have ten years left on the interest only mortgage before I have to hand it back / sell it. Isn't worth putting in
gas central heating? It has storage heating at present. Would paying out thousands now result in a return when I came
To sell it or shall I keep it basic?

[Old_Geezer]

Would you get more rent ? C/H tends to increase the value of a place, so all you'd need to feel sure of is that the extra net income over the decade covered any difference between the cost of putting it in and the increased house valuation. Over 240 months; I'd have thought it'd work out.

[ummmm]

Central heating is certainly a selling point.

What is the rest of the property like?

[KARL]

Too early in the morning, OG ? Ten years = 240 months ! :)

[KARL]

Or is it that keyboard acting up again ?

[silliemillie]

If the property is already nice then it maybe worth it but if when you sell you think the new purchaser will have to rip everything out and start again then probably not worth the bother.

[Scarlett]

I doubt I'd get more rent. As the flat is not in a desirable area the rents have to be kept low. It's all down to whether Id make the cost back when it was sold.
Rest of the property is okay but no garage, shared garden, quirky old place
But I've kept on top of it re. repairs

[ummmm]

Although you've kept on top of repairs what is the kitchen, bathroom, and windows like?

[Peter Pedant]

I am not sure what 'hand it back' means
if it means that your holding ( "head lease" ) has less than ten years to run then 'no' on any analysis

do you get increased rent if you put it in
that is is there a benefit ?

putting it in cant be that expensive - say £2000
( I mean a boiler change is around £600 where I live)
and so your pay back is under one year

- actually the tax situation is fraught - it probably WON'T count as "repair" - ie a tax expense against rent. You arent repairing anything - deffo capital improvement. so the cost would count against CGT when you sell

also from April 4 this year you are gonna lose your tax expense of mortgage interest relief .....

if you want to know what the calculation is
when money also loses its value over years then
you do a discounted cash flow calculation
here


[I have CH in all my lets]

bit of a technical answer
sozza - which section are we in ?

[mikey4444]

On the face of it, no it isn't worth it.

I don't know all the financial details, but it would seem that you probably wouldn't get your money back. There is also all the disruption to the flat that putting in CH would entail.

Are you sure that an interest-only mortgage was a good idea though ?

[ummmm]

A boiler change £600..??

I used to work for a plumber. You'd be lucky to be able to buy a boiler for £600 let alone the fitting costs.

[Old_Geezer]

Yeah too early. But the point remains the same.
Anyway everyone knows there's 24 months in a day.

[Berniecuddles2]

we had new boiler fitted plus 7 new radiators 2 yrs ago £2000 all in

[Scarlett]

Kitchen was new when I moved in (2002) and still very good nick, bathroom same- I replaced both when I bought the house as a condition of the mortgage. Windows are all listed though, so the original 1870 ones with secondary double glazing on the back ones. The kitchen downstairs has a new window and new back door. The only benefit I was hoping for was to be able to sell it for more in ten years time when the 25 years are up. I recently put in new updated storage heaters which probably cost the same as central heating would have, thinking about it. Gas wasn't available in the street when I moved in.