In a predicament kind of

rspencer

So i ll try and summarise my position in bullet points to make it easier to digest.

• House on market for £250k, bought for £255k with help to buy 20%.
• RICs valuation puts it at £242,500
• Moving to Australia on September 3rd. Booked one way tickets.
• Earning less now than when i first got the mortgage.

Need to sell house basically, is there another option?

• I looked at renting it out, but cant with Help to Buy.
• To pay off help to buy i would need 10's of thousands of pounds, i doubt a remortgage would work unless house price has dropped significantly (kind of has?)

Any help or advice or questions on my position, i ll be pleased to have another point of view from savvy people on here

foxy-stoat

How much equity do you have in the property?

tacpot12

If you can pay the mortgage lender what you owe them, sell the property.

If you can't afford to pay the mortgage lender what you owe them, I think you have just two options:

1) cancel the ticket to Australia and carry on paying the mortgage until you have enough equity in the property that you can sell it and pay the mortgage lender what you owe them.

2) ask a friend or family member to take out a personal loan for the money you owe and which will not be covered by the sale. They can give you the money to repay the lender, and you can repay them from Aus. Ask the friend with the best credit rating, so that you are paying the least amount of interest.

rspencer

Equity wise these are the numbers

Assuming we sold for RICs valuation...
Price of House 242500
Mortgage Amount 161,962.15
Help to Buy 48500
Left over 32,037.85

This is what i bought it for.
Price of House 255000
Mortgage Amount 164000
Help to Buy 51000
Left over 40000

rspencer

I have enough to pay back the lender, but we did put in more than we will likely takeaway.

Just wondering really if there is another option to rent it out, somehow pay off the help to buy to enable us to rent it out. or is there no chance of this?

foxy-stoat

rspencer wrote: »

Just wondering really if there is another option to rent it out, somehow pay off the help to buy to enable us to rent it out. or is there no chance of this?

Not sure why you would want to be a landlord if your living in Oz. Your better off selling it for whatever you can, clearing all the debt and taking the cash with you and enjoy the sun shine.

Renting out property isn't all that - you haven't got enough cash in your property to get a BTL and as you won't have a residential mortgage and not living in the UK it may be impossible to get one.

rspencer

foxy-stoat wrote: »

Not sure why you would want to be a landlord if your living in Oz. Your better off selling it for whatever you can, clearing all the debt and taking the cash with you and enjoy the sun shine.

Renting out property isn't all that - you haven't got enough cash in your property to get a BTL and as you won't have a residential mortgage and not living in the UK it may be impossible to get one.

It would be good to rent it out as we can make something from our house rather than losing so much by selling it outright.

However to do that there are many many steps, one of which would be to pay off the help to buy part of our home.

One idea, that im not sure is ok or not. I have no idea from searching online, rent out the house on AirBnB and make money that way.

Unsure if this is allowed under help to buy.

pink_pirlie

I let my property when I went to Australia for 2 years, then continued letting for 1.5 years after as I didn't move back to the same area. It was great having income and was very lucky to have good tenants.
I was also lucky in that I had family who looked after any issues whilst I was away and liaised with the letting agent on my behalf. . If I hadn't it would have been a major PITA.
I also had to do tax returns whilst I was away (which luckily I had experience of and capability to manage). I had to pay out on a new boiler and bits and bobs so had I make sure I had sufficient pounds to afford it despite not earning any pounds.
If you're not able to receive the kind of support I was massively lucky to receive then I would really consider hard the implications of being a non-resident landlord.

aries_163

I’d just cut your losses now.
Do you really, really want to be a landlord? Especially when overseas?

Have you read GM’s useful guide on being a landlord, on the ‘House buying’ board? In the sticky at the top.
What if you had a period when you didn’t have a tenant? What if a tenant defaulted on rent for a number on months?

You’ve still got some equity in the property. Take it and run!

foxy-stoat

rspencer wrote: »

It would be good to rent it out as we can make something from our house rather than losing so much by selling it outright.

However to do that there are many many steps, one of which would be to pay off the help to buy part of our home.

One idea, that im not sure is ok or not. I have no idea from searching online, rent out the house on AirBnB and make money that way.

Unsure if this is allowed under help to buy.

You will need 25% cash equity if you wanted a BTL - you don't have enough in it after repaying the H2B loan - not many, if any, lenders would accept AirBnB on BTL mortgage anyway.

Have you actually done any number crunching to know what the profit is on renting it out? Not as good as it used to be, unless your part of the UK is seeing big increases in property value.

tacpot12

You need to borrow £51000 to pay off the help to buy. This is the only way to get out of the restriction on letting the property.

If you sell now you have only lost £8000, but you will have £32,000 to take to Australia with you as a deposit for a new home there. You will also not have the worry about being an absent landlord.