renting out my home

Sockmonkey_2

Hello!

I am a newbie and very excited to be posting for the first time!

Me and my OT have just bought our first flat and are in the process of decorating it and settling in. We are on a fixed rate interest only mortgage for 2 years and then after that period we will be looking to find a better deal for a capital repayment mortgage.

We have decided that in approx 3 years time we would like to rent out our flat and go travelling for a year.

I have many questions regarding this, the first being... how on earth do we go about this? will our bank let us rent it out, and has anyone else ever done this and can offer any advise?

Thanks very much

Doozergirl

You simply explain to your lender what you are doing and ask them if you can let the flat out. There may be an additional charge on your mortgage for the priviledge though.

As you are going to be out of the country, I'd have the property fully managed by a letting agent as you don't want to be bothered by leaks and faulty boilers when you are away.

seven-day-weekend

Agree with the above, and would add - don't forget that if your rental profit (that's after expenses like your mortgage interest, insurances, agent's fees etc are taken off), plus any other income you have, exceeds your personal allowance, you will have to pay tax on it.

Also you will need to have a Gas Safety Certificate issued by a CORGI engineer.

stilernin

Also worth taking a reality check on the cost of putting your belongings into storage while you are away. It's not cheap and you always underestimate how much 'stuff' you have.

Best not buy too much between now and then perhaps.

Sockmonkey_2

Thanks for all the advise.

I would imagine that we would leave all of our furniture in there and rent it out as "fully furnished"

Doozergirl

....As long as you don't expect it back the way you left it

Welcome to MSE, by the way!

rosysparkle

If you will be abroad you will need to apply to the Revenue for a CNR number (using form NRL1), otherwise your agent or tenant is obliged to deduct tax at 22% and forward it quarterly to the Revenue. If your tax liability is less than the tax paid, you will get this back when you do your tax return.