Buying my first house to rent out and moving abroad

nb0825

My partner and I are planning to emigrate to Spain in the near future. Given that we both work, earning over £25k and have good credit ratings, we'd like to buy a house to rent out so that we have some roots to come back to when we return. We are both first time buyers and renting at the moment, and this would be our main residence.

My biggest concern is, do we have to disclose on our mortgage application that we're moving abroad and plan to rent it out soon after buying. Also, what would be the tax implications of this, since we'll be living and working in Spain. Anybody that has past experience of this and could shed light, would be much appreciated.

David_White

Are you intending on taking out a residential mortgage and then renting it out straight away?

unforeseen

nb0825 wrote: »

My partner and I are planning to emigrate to Spain in the near future.

nb0825 wrote: »

we have some roots to come back to when we return.

Make up your mind.

Are you planning on emigrating or just living there for a few years?

mrginge

Since you'll be applying for a buy to let mortgage I suspect the lender may have a fair idea of your plans...

Hutchch0920

I am interested in this too. Our plan is to go travelling and work abroad for 12-18 months and on our return relocate to the Midlands to settle down and have a family. We will have saved the deposit before we go travelling, given that it is likely to devalue slightly over the period in comparison to house prices I wonder whether we can buy before we go, live in it, or ask family to live in it for a few months and then ask for a consent to let for the period we'll be away.

nb0825

unforeseen wrote: »

Make up your mind.

Are you planning on emigrating or just living there for a few years?

We're emigrating for at least the next 5 years, but would like to have some roots here in case we come back

nb0825

David_White wrote: »

Are you intending on taking out a residential mortgage and then renting it out straight away?

Ideally we'd like a residential mortgage to get the best rate. I don't mind staying in the property for an additional year to keep the mortgage lender sweet, but we'll be emigrating soon after.

nb0825

mrginge wrote: »

Since you'll be applying for a buy to let mortgage I suspect the lender may have a fair idea of your plans...

We'd like to avoid a buy to let mortgage as they're significantly more expensive. We are prepared to live in it for the minimum period, to get a residential mortgage

AnotherJoe

nb0825 wrote: »

We'd like to avoid a buy to let mortgage as they're significantly more expensive. We are prepared to live in it for the minimum period, to get a residential mortgage

There is no guarantee you'll get CTL. There isn't any set "minimum period", 6 months for example doesn't mean they will grant at 6 months it just that they wont grant it before six months have elapsed which is a different thing

nb0825

AnotherJoe wrote: »

There is no guarantee you'll get CTL. There isn't any set "minimum period", 6 months for example doesn't mean they will grant at 6 months it just that they wont grant it before six months have elapsed which is a different thing

What would be the reasons I would NOT get CTL?

duchy

nb0825 wrote: »

What would be the reasons I would NOT get CTL?

The lender doesn't have to justify it - they can just say no.

Likely reasons - short history with them, very little equity in the property, not a good rental prospect etc but they don't need to give you a reason.