Question about BTL and emigrating

stoke_bishop

Hi,
We are going to emigrate in a couple of years. We are on a fixed which runs out in June 2011. We want to move to a BTL at this point, assuming that this is the right thing -- we believe so at least. The reason for BTL is that we are emigrating but want to keep hold of the house just in case we need to come back because it goes pear shaped. So these are the questions:
x) A BTL I presume is the way to go when remortgaging as we plan to rent it out
x) Is it possible to remortgage to a BTL from overseas? This might happen as we could end up having to go sooner, say a year, if I lose my job over here. So I would be remortgaging from Aus, say, on a house over here. Is that possible?

Any help much appreciated.

Thanks.

herbiesjp

1) Some lenders may be happy to offer a residential mortgage if it is your intention to come back - otherwise a BTL would be the correct option

2) It is possible to do a re-mortgage from overseas

For both of these you would need to get a whole of market adviser to these for you, who has had experience in these areas before.

magictom123

I find myself in the exact same postion as the OP as in 4 years our existing mortgage deal expires and once that time arrives we plan to move abroad. We want to rent out our property so we can come back if we have to from abroad. One further question from the OP's comments that I have is that I believe I am right in saying that as a 'landlord' to someone who is renting from me, I would be responsible for fixing broken things in the house etc - how would this be possible if I am abroad. Would it simply be a case of us both agreeing that they get someone out to fix said problem and charge it to me. Surely I could not be expected to be hopping on planes to fix a radiator etc.

I know this sounds very naive but I am interested to know.

Regards

Tom

Robert_Sterling_3

magictom123 wrote: »

Surely I could not be expected to be hopping on planes to fix a radiator etc.
I know this sounds very naive but I am interested to know.
Tom

You need to have someone you trust to look after the property for you.

stoke_bishop

magictom123 wrote: »

I find myself in the exact same postion as the OP as in 4 years our existing mortgage deal expires and once that time arrives we plan to move abroad. We want to rent out our property so we can come back if we have to from abroad. One further question from the OP's comments that I have is that I believe I am right in saying that as a 'landlord' to someone who is renting from me, I would be responsible for fixing broken things in the house etc - how would this be possible if I am abroad. Would it simply be a case of us both agreeing that they get someone out to fix said problem and charge it to me. Surely I could not be expected to be hopping on planes to fix a radiator etc.

I know this sounds very naive but I am interested to know.

Regards

Tom

We have my wife's parents living nearby. But property management companies will also arrange for tradespeople to fix things.

Johnk1

I moved abroad almost 3 years ago and decided to rent out my UK property so I would have something to come back to. I use a local management company - they charge 12% but I don't have any hassle with regards to maintenance or repairs, they take care of it and deduct any costs from the following month's rent.

I am fortunate in that the same tenants have been in the house since I moved.

On the downside my mortgage is with the Chelsea on their SVR and we all know the issue with that at the moment. My dilemma is whether I can get a new residential mortgage (I will be returning within 2 years) with immediate consent to let or have to go for a BTL mortgage seeing as I am out of the country....I need to do some research but are the current BTLs any lower than the 5.79% I am paying with Chelsea?

I have around a 35% LTV.

herbiesjp

Yes there are lower BTL rates, especially at that LTV.

Depending on your exact scenario there may be lenders happy to look at this on a residential basis - that fact you are looking to return in 2 years helps in that respect.

Your best bet is to discuss with a whole of market adviser in order to see what you can and can't do, as this will need to use their more specialised market knowledge and knowledge of criteria in order to get you the best rates

Johnk1

Thanks for the feedback Herbiesjp.

Presumably an internet search of suitable advisers is the way to go, and choose one that can help me 'remotely' ie; via phone / email as I am out of the country?

herbiesjp

Trawling the internet will not tell you if the advisers you have found have done such mortgage cases in the past

Friends or family would be the best starting point for recommendations

And yes, ones that work remotely would suit your needs best it seems.

IveSeenTheLight

I'm currently seconded overseas with UK BTL's.
I've never had any problems with any paperwork issues being overseas.
Mind you I did have the mortgage in place before I seconded.

My deals are up at the end of the year and I expect to be re-mortgaging at that point. I don't envisage any problems though