Renting in UK, But Moving To Spain - HELP!

FreeBetKing

Hi Guys,

Here goes my story.

I have been a council tenant from 1995 until 2003 when my home was transferred to a private housing association. I am currently paying really low rent @ approx £250 per month.

The company that I work for have announced that they are relocating to Spain by the end of June and would like me to move over there and continue to work for them.

I am excited about the prospect and would love the challenge of working in a new country, but I am concerned about losing my property.

I dread the thought of losing my property and I have applied to my local authority as part of the "right to buy" scheme and hope to purchase my property (est. value £120k) with approximately 20% discount if I am accepted. (I am confident that I will be given RTB).

My concerns are, if I am able to get a mortgage on the property, my monthly repayments will be significantly higher than what I am paying now. What if things don't work out in Spain?

Will it be easy getting a mortgage on a ex-council property?

Will I be able to mortgage the property for more than the purchase price to release some funds to decorate the property so its suitable for renting out?

Does anyone know how much an estate agent charges to manage the letting of a property when I am abroad?

Do I have to pay income tax on the rental earnings? Even if it is less than my mortgage payments?

Am I best leaving the property furnished or un-furnished? If unfurnished is the best option, I would have to look at putting my property in storage?

I assume I am liable for repairs etc... who will do these if I am in spain? If the property is furnished - am I liable for a broken dishwasher for example?

Really dont know what to do with this...any advice would be most welcomed!

FreeBetKing

Nobody advise?

patricia1066

I have been a council tenant from 1995 until 2003 when my home was transferred to a private housing association. I am currently paying really low rent @ approx £250 per month.

The company that I work for have announced that they are relocating to Spain by the end of June and would like me to move over there and continue to work for them.

I am excited about the prospect and would love the challenge of working in a new country, but I am concerned about losing my property.

If you go abroad on a temporary basis, and notify your Housing Association that it is only temporary, they will probably agree that you can retain your home. If on the other hand they discover after several months that you no longer occupy the property, they may serve a Notice to Quit on the property, and not being there, you would lose possession by order of the court.

I dread the thought of losing my property and I have applied to my local authority as part of the "right to buy" scheme and hope to purchase my property (est. value £120k) with approximately 20% discount if I am accepted. (I am confident that I will be given RTB).

My concerns are, if I am able to get a mortgage on the property, my monthly repayments will be significantly higher than what I am paying now. What if things don't work out in Spain?

If you need rental income to cover your costs you will need to set up a Buy to Let mortgage, and a lettings agency contract. These mortgages are at a higher interest rate than the home ownership market.

Try to get a few agencies to quote their fees, and once you have your mortgage offer, agents fees and set aside repairs and void fund, you can judge most of your costs. If the figures do not stack up (if the rental market for your home is slow) then dont commit to purchase yet.

Will it be easy getting a mortgage on a ex-council property?

Talk to a mortgage broker about this

Will I be able to mortgage the property for more than the purchase price to release some funds to decorate the property so its suitable for renting out?

Does anyone know how much an estate agent charges to manage the letting of a property when I am abroad?

Do I have to pay income tax on the rental earnings? Even if it is less than my mortgage payments?

Am I best leaving the property furnished or un-furnished? If unfurnished is the best option, I would have to look at putting my property in storage?
Talk to the lettings agents about what lets more easily in your area

I assume I am liable for repairs etc... who will do these if I am in spain? If the property is furnished - am I liable for a broken dishwasher for example?
You are responsible for repairs once you purchase. You will also be responsible for contributing to any communal services, major works etc. Who deals with repairs depends on your agreement with the lettings agent. They may include this among their services, and in your circumstances it would be essential. Unless you have a trusted neighbour to deal with it for you!