What I Own: We paid £125,000 for our London houseboat — we charge our lodger £1,200 a month

Welcome back to What I Own – Metro’s property series where we speak to homeowners about getting on the ladder.

When 40-year-old Rachael Smith and her partner Euan first thought about swapping traditional London renting for the boat life, they decided to dip their toes in the water by renting one first.

Trying out a mooring in Bermondsey, South London, they quickly decided to take the plunge, and ended up moving back to the same spot when they bought a place of their own in 2023.

Finding a second-hand boat for £125,000, they’re now part of a community of 40 others, with neighbours – both renters and owners – ranging from as young as two months to 80.

They decided to take out a private mortgage with the previous owner, and took a tenant of their own on board to gather an extra £1,200 per month towards the costs.

Here’s what Rachael had to say about their property journey…

Tell us about yourself!

I’m 40 and my partner Euan is 47. I set up Cocoon Natural Dye House during the pandemic, hand-making botanically dyed sustainable homewares and accessories.

I work from my home studio on the barge. My partner Euan is a technical director at the Marlowe Theatre in Canterbury.

Whereabouts is your property? What do you think of the area?

On the south side of the River Thames, in Bermondsey. We’re on a mooring that houses around 40 boats, with floating gardens and a community barge for events.

There is a mix of renters and boat owners, with ages ranging from two months to 80+. It’s a lovely, diverse group of people who all love the river and the moorings.

When did you move in? 

The barge was in Gravesend in Kent when we bought it. We moved on board in April last year at Gravesend, then moved the barge around to our mooring in London in May 2024.

We have lived on these moorings previously, including renting our first place together, which was a tiny cabin and was also our first experience living on a boat.

It was living here that made us fall in love with the river, so coming back to this mooring one day with our own boat has long been our goal.

How much does your property cost?

We bought it for £125,000 last year.

How much was your deposit?

We set up a private mortgage with the previous owner, as we didn’t have the full amount. We paid him £75,000 in order to take possession of the barge, with a further £50,000 owed as a private mortgage.

What is the monthly cost of living here now, both mortgage and bills?

Mooring fees are just under £1,500 per month, a private mortgage is £450, and heating and electricity are around £200.

We have sectioned off about a third of the barge, which we rent out for £1,200 per month, which helps to cover some of the costs. Currently, we wouldn’t be able to afford to live here without a tenant.

What was the process of getting a mortgage like for you? Did you find any parts challenging?

We weren’t able to get a mortgage as we couldn’t find a provider that would give a mortgage on a 100+-year-old barge. There are a couple of places that specialise in marine mortgages, but it seems they only lend on new vessels.

We ended up borrowing money through equity release, after exhausting all possible options, which is probably the worst, most complicated and expensive way to borrow large sums of money.

However, we took the chance as otherwise we would have lost the barge and the mooring slot, and we needed to make the move. But we couldn’t have done it without support and understanding from our families.

Where did you live before this – were you renting or living with family?

We were living together on a different boat, which was the first boat we bought.

What made you want to buy rather than rent?

Back when we were renting, we decided to go ahead and buy because we could get much more space for around the same monthly cost.

When you buy a boat as opposed to a house, you are effectively taking on more of a liability than security, as the value of boats doesn’t tend to appreciate.

But we’ve always seen them as a home, a way of life and an opportunity to live in amazing places, rather than something to invest or speculate on.

How did you find this property? What made you choose it?

We found it online on a boat brokers website, though we knew of the barge from back when we rented on this mooring.

How have you made the property feel like home?

It felt like home pretty much straight away; we haven’t had to do much to it beyond painting the walls and building my studio.

Having a space to sit outside and grow plants in the summer is also what feels like home to me.

What’s the inspiration for your interior decor style?

We have an eclectic mix of furniture, but are really inspired by 20th century design. The interior will probably keep evolving over time, but I am keen to keep it simple, as boats can feel cluttered easily.

What’s your favourite room and why?

I love the wheelhouse with its views of the river. Watching the river traffic and the weather, the sense of space and uninterrupted view is addictive and rare in the heart of a city that is increasingly building upwards.

It’s a comfortable space to sit and work, and also hang out with friends in the evenings.

Do you feel like you have enough space?

I do, but Euan doesn’t! So the diplomatic answer would be ‘not quite,’ especially as we work from home more than we used to.

But there is potential to extend our living space if/when we can afford not to have a tenant.

Though I think the rental income is worth losing a little space, especially as we will always be paying mooring fees, even once we’ve paid down the mortgage.

We do actually really love sharing the barge with a tenant, and we’ve been lucky with some really lovely tenants.

Do you have plans to change the property?

As we get to know how we use the barge we’ve had some ideas about how we could maximise our use of the space.

One thought is to move the kitchen down into where the lounge is, to make an open plan kitchen/dining room, so that we can have more friends over for dinners. The lounge would move up to where the kitchen is, for a cosy area.

Are there any problems with the property that you have to deal with?

So living on a boat has some duties that you need to keep on top of, such as pumping out our black water tank (septic tank) – the system connects to the sewer, which we need to do about once a month.

Also, our water supply comes from a tank which needs filling by hose every few days. We have to take the barge to dry dock every few years, where the barge goes out of the water so we can check the bottom and paint it.

What do you want people to know about buying a home?

Don’t rush it. It’s an involved process, so save it for the right place, as taking on property can easily become a burden. Consider what you really need from life. And don’t be afraid to think outside of the box!

What are your plans for the future, in terms of housing? Do you plan to stay here long term?

I couldn’t imagine not living on the water, and we are very happy with the barge, so I can see us staying for the long term.

Shall we take a look around?

This article was originally published on April 6, 2024.

Do you have a story to share?

Get in touch by emailing MetroLifestyleTeam@Metro.co.uk.

Comments