How does converting to BTL actually work if you're moving abroad

Thrugelmir

hodd said:

Just an update on this, CTL is only allowed (with my existing lender) for up to a year.

From a tenant's point of view, isn't that less than ideal? It's a two-bedroom house so would suit a couple or small family who probably want to be slightly more settled. It alos means I'd rent it furnished as would any tenant want to buy loads of furniture for a 12-month let?

Just thinking aloud.

If you are living somewhere in Asia. Then I'd suggest that you make life as simple as you can for yourself. The more administration there is for a local managing agent the greater the cost. Ideally you would find a long term tenant. Rather than go through a revolving door with all the uncertainty that goes with dealing with people. 

hodd

Just spoke to someone at the bank.

Firstly, CTL is allowed for up to TWO years which is better than the one year I was told yesterday. It's a one-time deal during the life of the mortgage so couldn't be extended or started again in future. Applying for CTL sounds relatively starighforward.

A BTL would be a full mortgage application. That was my original concern. Whilst it's not a huge mortgage (just over £500 a month) and I currently have savings which equate to around 10 years' worth of current payments, I would be heading abroad as a freelancer (I'm a qualified school teacher and engineer, so probably would find work OK) and wouldn't be able to prove an income at the time I head abroad. Furthermore, my lender currently would not accept a remortgage application with only foreign income, even allowing for any rental income. That's a bit of a blow and means a BTL wouldn't be possible with this lender.

So any ideas? Are there other lenders who'd accept foreign income? 

hodd

Deleted_User said:

You wont need a prove able income if you go down the ctl route.   After 6months of rental proof you become an 'experienced landlord' and some lenders will do expat btl with no income required.

I think you've already answered my question, JMA

I need to find one of those "expat" lenders. Any ideas, please?