Letting your main property due to moving abroad
Discussion
Hi,
I am just reading up on being a landlord as there is a high chance I will be emigrating (most likely temporarily), but do not want to sell my house in the UK.
I understand that there is a whole host of things to keep in mind, such as annual gas safety certificate, EPC, deposits and self-assessment returns (being taxed on income in the UK whilst living in Luxembourg is also something I would love answered by the way), but my main query is what to do with my residential mortgage.
As far as I understand, it is recommended to get a buy-to-let mortgage for my house, but I have an awesome rate and would rather leave things as is. Would I b breaking the actual law or exposing myself to some sort of penalties by doing so? What are my likely and worst scenarios if I just let my house and moved away?
Thanks for your help in advance.
I am just reading up on being a landlord as there is a high chance I will be emigrating (most likely temporarily), but do not want to sell my house in the UK.
I understand that there is a whole host of things to keep in mind, such as annual gas safety certificate, EPC, deposits and self-assessment returns (being taxed on income in the UK whilst living in Luxembourg is also something I would love answered by the way), but my main query is what to do with my residential mortgage.
As far as I understand, it is recommended to get a buy-to-let mortgage for my house, but I have an awesome rate and would rather leave things as is. Would I b breaking the actual law or exposing myself to some sort of penalties by doing so? What are my likely and worst scenarios if I just let my house and moved away?
Thanks for your help in advance.
Worst case scenario is the nice man from the mortgage company rings you up and asks you to pay off the mortgage by Friday morning , thanks very much. Unlikely, but you asked. I'd get in touch with your mortgage company and ask nicely. A decent lettings agent will ask to see permission from the mortgage company anyway.
I moved overseas around 4 years ago having literally just bought my first house ! I think firstly you should speak to your lender - if its just a temporary contract they may give you consent to let for a period of time. Unfortunately my mortgage provider didn't offer a BTL product so I was forced to take out a new loan with someone who did. One thing to bear in mind is if you use a lettings agent they may ask for proof that your mortgage provider has given their consent for you to rent - that was the case for me in London.
If you do have to take out a new mortgage try and find an expat advisor - I took out a new deal last year at 2.25% fixed for 3 years which I thought was excellent and certainly better than what's on offer with a BTL product.
Hope this helps !
If you do have to take out a new mortgage try and find an expat advisor - I took out a new deal last year at 2.25% fixed for 3 years which I thought was excellent and certainly better than what's on offer with a BTL product.
Hope this helps !
As above - you need permission to let. Very very rare not for this to be granted. I think we pay £200 PA 'admin' though!
As you are going abroad, make sure you fill out a non-resident landlord form (NRL-1). This means that the agent (or tenant - will explain below) does not deduct tax before sending to you. All you then have to do is fill in your SA tax at the end of each year. I imagine there will be little/no deduction as your main income will not be from the UK so you will have your full UK tax allowance.
Bizarre tax fact - If you do not fill in the NRL-1, the person paying the money to you is responsible for deducting tax at the 'standard' (lower) tax rate. This would usually be the agent, but; if you are letting directly to tenant, it wold actually be the tenants' responsibility.
Good luck with the move - Lux is a great place.
Phil
As you are going abroad, make sure you fill out a non-resident landlord form (NRL-1). This means that the agent (or tenant - will explain below) does not deduct tax before sending to you. All you then have to do is fill in your SA tax at the end of each year. I imagine there will be little/no deduction as your main income will not be from the UK so you will have your full UK tax allowance.
Bizarre tax fact - If you do not fill in the NRL-1, the person paying the money to you is responsible for deducting tax at the 'standard' (lower) tax rate. This would usually be the agent, but; if you are letting directly to tenant, it wold actually be the tenants' responsibility.
Good luck with the move - Lux is a great place.
Phil
Also sort the building insurance.
Oh, and be prepared to let your home out.
Renting your home out is extremely different to renting out a house. Your home you have an emotional attachment to.
Most tenants are very nice and will treat your home as their home.
However, there are tenants out there who are complete and utter
s.
Oh, and be prepared to let your home out.
Renting your home out is extremely different to renting out a house. Your home you have an emotional attachment to.
Most tenants are very nice and will treat your home as their home.
However, there are tenants out there who are complete and utter
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