Remortgaging uk property from aus

colininaus

Hi,

Can anyone shine a little light on this one?

We have recently emigrated to Australia, and have let our uk home out, fortunately we have good tennants (a Church renting for thier vicar&family) and so far so good, we are renting over here at the moment, but would prefer to buy because of the high tax we will pay on our rental income.

Our uk mortgage at the moment is £60k offset type, property has been valued at £410k, rental income £1,350

I am employed getting $48k...approx £20k

We have the choice of either selling or keeping the house as a long term investment, but are finding it hard to get anyone interested because we are no longer uk tax residents.......our idea is to draw as much equity out of the house as possible, pay back the old mortgage and transfer the rest over here.

Does anyone know of any lenders who specialise in this?

stanmoresaver

colininaus wrote:

Hi,

Our uk mortgage at the moment is £60k offset type, property has been valued at £410k, rental income £1,350

So at the mo- you have a £350,000 investment yeilding £1350 pm.

Thats 4.62%

Unless you want the option to return to the uk- consider whether that is a suffecient return.

Good Luck and enjoy the sunshine- It's May and suposedly summer but it's pouring with rain and there's a pending drought-order! :j Can't blame you!

SS

HelpWhereIcan

There are buy to lenders who will consider you if you are no longer a Uk resident or tax payer, but the deals on offer can be limited and it will really depend on how much you would need to raise (probably around £235,000 - 60000 = 175000 max).

Most will want you to still have a UK bank account and will only really look at you if you are an expatriate who intends to return to the uk at some point. Some will want a UK based correspondance address. All of these are to establish some ongoing link with the UK and to evidence a likelihood that you will return to the UK at some point.

As stan says, it may be worth your while weighing up whether or not there is a real benefit to you maintaining a UK property and tying up so much, particularly as your choice of lender and deal will be limited.

Hope this helps

colininaus

Thanks very much for your replies.......the question of whether to keep it or to sell it has been a real dilema for us, we were thinking of it as a long term investment, but trying to manage a property from 12,000 miles away will not be without problems, especially as it ages.

We still have kept bank accounts open, and have a daughter still living in the uk, so no problems with an address either......but you really have confirmed what I was thinking, is it worth it, and we do not intend coming back as we are so happy here.....sorry about the weather over there stan, it's almost winter here, and it's a beautiful day today with sun is still shining!!

You have both helped very much.......

Thankyou

stanmoresaver

colininaus wrote:

Thanks very much for your replies.......the question of whether to keep it or to sell it has been a real dilema for us, we were thinking of it as a long term investment, but trying to manage a property from 12,000 miles away will not be without problems, especially as it ages.

We still have kept bank accounts open, and have a daughter still living in the uk, so no problems with an address either......but you really have confirmed what I was thinking, is it worth it, and we do not intend coming back as we are so happy here.....sorry about the weather over there stan, it's almost winter here, and it's a beautiful day today with sun is still shining!!

You have both helped very much.......

Thankyou

Glad a brave move has worked out!

Enjoy!

SS

Cook_County

1. I assume you have transferred all your UK pensions to Australia to avoid the FIF regime. Can you account for these in your investment planning?

2. If you remortgage does Australia tax any foreign currency gain?

3. What is the Australian capital gains tax if you sell?

I do not know the answers to these questions, but they all need to go into the thinking process before you act...

colininaus

Cook_County wrote:

1. I assume you have transferred all your UK pensions to Australia to avoid the FIF regime. Can you account for these in your investment planning?

2. If you remortgage does Australia tax any foreign currency gain?

3. What is the Australian capital gains tax if you sell?

I do not know the answers to these questions, but they all need to go into the thinking process before you act...

Hi,

No we haven't transfered our pensions yet as we wanted to find out whether we wanted to stay, but you are quite correct that it is something we need to do, I believe they have just changed the rules on where you can transfer it to, something like a 'Quorps' registered!!......something we will have to look into soon me thinks!

2&3 not quite sure on that, although they proberly will, but again it's something we should look into more, we did get a valuation in writing before we left and I do realise they will want to tax on any profit made since our departure.

Thanks for your interest!