Any pitfalls TAX advice Renting out Mortgaged leashold flat

davidarmes

Offered Job working abroad for 2 years as
an English teacher in an International school

Seeking Advice - any pitfalls ? in Renting out Mortgaged ( leasehold ) furnished flat ?

Note - not financially viable to sell flat via estate agent?
as approx 10K negative equity in property.

---

Rental income (according to zoopla ) should fetch £900 to £1000 per month , current mortgage is £700 per month

---

IMHO - Have 4 options ??

1) Rent out flat Privately to Friends?
2) Use a letting agency Rent out flat ?
3) Let My parents live in flat and they
agree to pay mortgage , buildings insurance
council tax etc , on my behalf ?
4) Sell property privately at a loss to My Parents ?

G_M

Read this post then come back with questions:

New Landlords (information for new or prospective landlords)

edit:
1) bad idea
2) better idea, but do a detailed budget
3) you're getting rent (mortgage paid) so still a landlord & still owe tax on income (mortgage)
4) possible (your mortgage will need paying off)

Werdnal

Particularly relevant to your situation is the HMRC non-UK resident landlord scheme - there is a link in the thread-link posted by GM above.

Have you looked into consent to let? If you have a residential mortgage and not living there yourself (even if only "let" to your parents), you need to check terms as this could be a breach. CTL will increase the premiums, maybe add set-up costs, but can of course also be refused - depends on inidividual circumstances, loan to value amount, how long you have had the agreement etc.

Yorkie1

Also, have you double checked your lease to ensure it allows you to rent the flat out at all?