Should I sell or take a Lifetime BTL mortgage ?

I've just re-read your post and can now see that the £3k/m is the gross rent rather than your net income. So, the rent yield is pretty low and your net income is probably less than £2k/m. Even if you could only take net £750k after CGT on sale of the property I think you would still be better off financially (4% natural yield from £750k would give you £2,500/m) and would certainly have an easier life. I suppose the question is whether you have any emotional tie to your former home that might make it difficult for you to sell. Objectively, it looks like a no-brainer to me.

Reply to the comment left by Queen Victoria at 03/08/2019 - 11:31
Other than by investing into rental property, where else can you get a 4% return on £750,000, net of tax, plus the prospects of capital appreciation, and with the same or less risk than associated with rental property investment?

Without knowing your details, how much CGT you will have to pay, value of property near to your home, rental income in your area? I would sell the house. If it adds up you could possibly have enough to buy three or four houses closer to home, have a lump sum in the bank, and no mortgage. Let Letting Supermarket manage them.
If you have a void in your one house there is no income, by spreading the fund over several properties, there would still be an income as it is unlikely all of them would be empty at the same time.. Eggs and baskets.

Reply to the comment left by Mark Alexander at 03/08/2019 - 11:50
Well, I know this is controversial Mark, this being a property site, but it’s the stock market.

My pension is invested in passive, global funds (Vanguard mostly) at low cost, with minimal fuss and I am getting well over 4% at the moment but expect around 4% average over the longer term. I can flex what I take to manage the tax liability.

The risks are different to property of course but over the long term I would expect to see the value of my funds rise and to still be able to draw 4% most years

Reply to the comment left by Queen Victoria at 03/08/2019 - 23:26
I cannot deny that. I have a friend called Andy Hallam who wrote the Expat Millionaire book (awesome read by the way) and he says and does exactly what you have said too.

Having spent a lifetime in property, even to the extent that my offices are in SIPPs and SSAS funds, I don’t think I could easily switch to something I can’t see and touch without feeling out of control. Furthermore, my strategy has always been based around geared investment. I appreciate this gentleman’s strategy isn’t.

Reply to the comment left by Mark Alexander at 04/08/2019 - 06:30
And I have done the same as you over the years but as I move into retirement I prefer that is more 'hands off'. A passive global multi-asset fund held in a SIPP and ISA could not be easier to run. The lady asking the question says she is 65, busy caring for her elderly mother and letting out her main home at the other end of the country rather than being an active property investor. It strikes me that 'hand off' investment might suit her well. Of course, if she can gradually use up ISA and pension allowances she can shelter from tax too.

Reply to the comment left by Queen Victoria at 04/08/2019 - 07:40
Yes that’s true, but doesn’t investing into something you cannot possibly control, touch or even see worry you?

Maybe my fears of stock market crashes are irrational given that property crashes happen pretty much as often. I just struggle to convert, and I’m also in the twilight years of my career too, having already semi-retired, so I do understand the attraction of being “hands off”

Reply to the comment left by Mark Alexander at 04/08/2019 - 07:56
It has taken me a little while to be comfortable with it but I am happy with the way the stock market works now. If you look at the way it works there are peaks and troughs in the market but the general trajectory is upwards. So, if you just sit tight, ignore any fall in stock prices and wait for the recovery, then it all works out well over the long term. The trick is to be well diversified. Years ago that meant buying lots of different shares. Nowadays though, you just buy funds. You really just need one fund that is buys the world market and you have natural diversification. It is even (mostly) Brexit proof because it is largely invested in the US and other markets around the world. Listen to Pete Matthew on his Meaningful Money podcasts - there is good back catalogue to cover all investing questions.

That’s pretty much what Andy Hallam says in his book.

He also mentions brokers and various providers of “wrappers” to avoid.

As I have said, when I am in my 79’s or maybe before if I am ready I might consider it. Right now though I prefer property despite all the hassle it comes with. That said, I do envy the fact that my friend spends two hours a year managing his investments whilst mine take upwards of 20 hours a week of my time!

Reply to the comment left by Mark Alexander at 04/08/2019 - 11:35Each to his/her own Mark but I have changed my spots and you can too if/when the time comes. In terms of brokers and wrappers, yes there are expensive 'managed' options but there is a strong argument for keeping it simple with a fee based plaform such as Interactive Investor (ii) or AJBell and then hold assets in a SIPP and/or ISA. I pay ii £11.99/month I think and then the only other fee is the fund fee itself and the cheapies like Vanguard are priced at around 0.2%pa. Its cheap because it just does the simple job of buying and holding the whole market rather than trying to beat it with expensive management.