Buying my first house to rent out and moving abroad

marksoton

nb0825 wrote: »

What would be the reasons I would NOT get CTL?

Because the lender have seen through your plan....

csgohan4

Smells like mortgage fraud

nb0825

csgohan4 wrote: »

Smells like mortgage fraud

How is it mortgage fraud? Unless there's a question that specifically asks, "do you intend to rent out the property in X number of months" after buying the property.

Ebe_Scrooge

Quite apart from the mortgage side of things, have you thought about how you're going to manage the house ? Who's going to vet the tenants, and hold the deposit ? Who's going to advertise for new tenants if the first lot leave ? Who's going to arrange and pay for repairs and maintenance ? A letting agent is the obvious choice, but have you worked out how much you'll be paying them for the service, and will their fee leave you enough from the rental income to cover the mortgage ?

mrginge

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

'Minimum period' ?

There's no problem with what you're suggesting. Just don't tell the lender.
Then when you want to go, find out what their CTL criteria is. If it looks like it might be refused or 'significantly more expensive', then again, just don't tell them.
And don't bother with landlords insurance as that might get you caught out.
And don't tell hmrc either.
Job done.

ViolaLass

Buying a house so that you 'have roots' somewhere? Are you not allowed to move back to an area if you haven't bought there?

marksoton

mrginge wrote: »

'Minimum period' ?

There's no problem with what you're suggesting. Just don't tell the lender.
Then when you want to go, find out what their CTL criteria is. If it looks like it might be refused or 'significantly more expensive', then again, just don't tell them.
And don't bother with landlords insurance as that might get you caught out.
And don't tell hmrc either.
Job done.

And i thought i was a sarcy !!!!!!...:D

Thrugelmir

nb0825 wrote: »

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.

If those are your biggest concerns. Then (with my business hat on) I have to say that you haven't thought through all the implications. You can do as you wish. However the downside to lying (committing fraud) will leave a permanent stain on your characters as far as financial institutions are concerned. Certainly not a route to be advised. As not like being caught for speeding. Where you'll get a slap on the wrist by accepting a speed awareness course. Also as others have also pointed out. Letting property isn't just merely collecting a monthly cheque.

Property in Spain is far cheaper. Why not buy out there and save on the rent?

Caz3121

nb0825 wrote: »

What would be the reasons I would NOT get CTL?

commonly from what I have seen CTL can be given for a time period up to 2 years. As your plans appear to be to be away for longer I suspect that switching over to a BTL product would be required. "emigrating" tends to imply going and not coming back
Would you have sufficient deposit to cover 25% of the property value or would you be able to reduce the LTV before you move
If you tie yourself in to a fixed rate you may also have early redemption penalties on the mortgage
I assume you are fluent Spanish speakers and would have jobs lined up to go to with the unemployment situation in Spain. If planning on taking risk and just going, would you have enough savings to pay both mortgage and your own living expenses in periods where the property was empty?
As an overseas landlord you would need to have a UK agent who can sort out the payment of taxes or you can go through self assessment https://www.gov.uk/tax-uk-income-live-abroad/rent

David_White

nb0825 wrote: »

How is it mortgage fraud? Unless there's a question that specifically asks, "do you intend to rent out the property in X number of months" after buying the property.

You are likely to be asked a question along the lines of "Are you aware of any change to your circumstances in the future".

What you are planning is a huge change of circumstances and by telling the truth to that question you'll come undone.

Lying to that question has it's own issues which should be obvious.