What to do with flat when go travelling

Loopylou82

I'm planning on going traveling for 6-12 months by the end of 2010. I'm considering renting out my flat when I am gone, but after reading some of the information on here it seems a lot more complicated than I first thought - especially as it's for a short length of time. I have yet to go and speak to my mortgage lender about this, but am wondering whether it may be easier for me to have a mortgage break for the duration I am gone for, and just to leave the flat empty?

At the moment I'm not paying much in terms of monthly payments, so is it possible for me to pay more now, almost paying for what I should be when I am off traveling? Although this would mean less saving...which would defeat the whole purpose really!

Am just starting the process of thinking about my options, and so any advice to get me started would be appreciated.

hometrader

Proabably not worth letting it if you are only going away for this time. I assume you would use a letting/managment agent - would they be able to contact you if urgent while you are away? Would the flat be occupied on your return?

Also depends on what the rent would be compared to your mortgage payments. If you are going to be raking it in then it might be worth it. Hmmm, I can see that there is a lot to consider!! Good luck

getmore4less

Rather than overpay/underpay having the payments saved up to pay normaly might be easier.

Check your insurance for an extended period away.

Snakeeyes21

Don't rent out if thats all the time you will be away for.
If you get an awkward tenant you might come home and be homeless for a couple of months, whilst you go through the courts to get them out

property.advert

OK, the basic problem seems to be that the OP doesn't actually have enough money to go off around the world for a year. That said, I am not all cold hearted

Logistically, you need the money from renting this flat out in order to do this trip. Your first problem is that you do not know how long you will be away. Most people do not want only a 6 month lease. My advise to you would be a 12 month lease, with a break at 6 months, after which time either party can give 2 months notice. You need a friend's place to crash for up to 2 months. Do you have that ? or your family ? If so, it can work out.

To protect yourself and to have enough money to fund the trip, you need a fund of 12 months mortgage payments, insurance renewals, service charges and an emergency kitty. You put this in a bank where you charge the mortgage to and you do not touch the money. Maybe give the emergency money to your parents. Your property is then relatively secure.

You need a cash fund to start your trip and some in reserve but you should get your rental income regularly. You will need a very good agent or some strong willed friends to help you out with this. As you will be out of the country, there should be no need for your agent to withold 20% or whatever the tax is from your rent income.

If your costs were 10k for the year, then you need that 10k plus perhaps another 5k. While you are away you will get about 8.5k from the rent.