House for short lets in N/NW London

pettelly

We live abroad where we rent. For various (family) reasons, we have sold our family home in London. We don't want to buy where we live now as it wouldn't be a good investment. Even though we have no plans to return to the UK imminently, we will do eventually. Plus our teenage kids are all planning to study in the UK (from Sept 2023 onwards) and we also visit quite often. So we were thinking that it would be great to use the money from the sale of the family home to still have a base in the UK, ideally in N/NW London near our family and friends for us to use  for holidays and visits and for the kids to have a home base for weekends and holidays when they are at uni (we live  long haul flight away). However, obviously we wouldn't want it to stand empty most of the time so what we were thinking was a short-lets property and/or airbnb for the time that we won't be using it.

Has anyone done this? Any advice? We'd need to use a management company as we wouldn't be there.

We were thinking of going for zone 3 or 4 but close to a tube/train station and, ideally, a 2-bed house or share of freehold apartment.

theartfullodger

Short - how short .- 2 months, 6 months?  Most landlords and agents are usually only happy with a minimum of 6 months in England.

But discuss with agents or landlords.  My youngest son needed a few months let last year in Bethnall green, 2 or 3 months.  Agreed deal with local landlord (son's flat major refurbishment) sorted, with flexible end date. Amazingly additional floor and rooms done on-time and on budget!

In SCT a tenant may give 28 day notice anytime.  Come on England, catch up!

Try!

ilikewatch2

theartfullodger said:

Short - how short .- 2 months, 6 months?  Most landlords and agents are usually only happy with a minimum of 6 months in England.

But discuss with agents or landlords.  My youngest son needed a few months let last year in Bethnall green.  Agreed deal with local landlord (son's flat major refurbishment) sorted, with flexible end date. Amazingly additional floor and rooms done on-time and on budget!

In SCT a tenant may give 28 day notice anytime.  Come on England, catch up!

Try!

I think OP is talking about buying a property and letting it out on short term lets when they aren't using it?

pettelly

Yes, exactly. We want the flexibility to use the property and accept lets in accordance. I was thinking airbnb or similar using a management company.

zagubov

pettelly said:

We live abroad where we rent. For various (family) reasons, we have sold our family home in London. We don't want to buy where we live now as it wouldn't be a good investment. Even though we have no plans to return to the UK imminently, we will do eventually. Plus our teenage kids are all planning to study in the UK (from Sept 2023 onwards) and we also visit quite often. 

Not trying to change the topic, but would your kids be better off applying to university in your current country of residence? They may struggle with meeting the three-year residence rule to be treated as a home student in the UK, as it's not simply based on citizenship.

pettelly

zagubov said:

pettelly said:

We live abroad where we rent. For various (family) reasons, we have sold our family home in London. We don't want to buy where we live now as it wouldn't be a good investment. Even though we have no plans to return to the UK imminently, we will do eventually. Plus our teenage kids are all planning to study in the UK (from Sept 2023 onwards) and we also visit quite often. 

Not trying to change the topic, but would your kids be better off applying to university in your current country of residence? They may struggle with meeting the three-year residence rule to be treated as a home student in the UK, as it's not simply based on citizenship.

Studying here is not an option. It's a developing country and non English speaking so not a goer. We know the rules governing home status and hope that we can prove that we have left temporarily (since our visas are temporary - we have no residency rights here at all other than those tied to my job so clearly returning to the UK has always been on the cards, apparently many people from the UAE have managed on that basis so we're hopeful). However, we've also prepared financially for being assessed as overseas (so us parents take the hit and not the kids) and knew that this was the case when we left. We had thought of US, Australia, Canada, English speaking programmes in Europe - for uni they could go anywhere - but kids want to go 'home'.

SDLT_Geek

pettelly said:

We live abroad where we rent. For various (family) reasons, we have sold our family home in London. We don't want to buy where we live now as it wouldn't be a good investment. Even though we have no plans to return to the UK imminently, we will do eventually. Plus our teenage kids are all planning to study in the UK (from Sept 2023 onwards) and we also visit quite often. So we were thinking that it would be great to use the money from the sale of the family home to still have a base in the UK, ideally in N/NW London near our family and friends for us to use  for holidays and visits and for the kids to have a home base for weekends and holidays when they are at uni (we live  long haul flight away). However, obviously we wouldn't want it to stand empty most of the time so what we were thinking was a short-lets property and/or airbnb for the time that we won't be using it.

Has anyone done this? Any advice? We'd need to use a management company as we wouldn't be there.

We were thinking of going for zone 3 or 4 but close to a tube/train station and, ideally, a 2-bed house or share of freehold apartment.

Have you allowed for the fact that buying a property in London while living abroad will incur the extra 2% stamp duty land tax for non UK residents?

GDB2222

I know there are short lets available in London, with the rent depending on the length of the contract. You'd obviously get lots of voids.  I have no practical experience, though.

I'm not clear how the contracts are worded, and whether you can get possession without a court order?

Perhaps, a good starting point would be to talk to a couple of the firms specialising in management?   I googled "short term let management london", which brought up a number of hits.

pettelly

SDLT_Geek said:

pettelly said:

We live abroad where we rent. For various (family) reasons, we have sold our family home in London. We don't want to buy where we live now as it wouldn't be a good investment. Even though we have no plans to return to the UK imminently, we will do eventually. Plus our teenage kids are all planning to study in the UK (from Sept 2023 onwards) and we also visit quite often. So we were thinking that it would be great to use the money from the sale of the family home to still have a base in the UK, ideally in N/NW London near our family and friends for us to use  for holidays and visits and for the kids to have a home base for weekends and holidays when they are at uni (we live  long haul flight away). However, obviously we wouldn't want it to stand empty most of the time so what we were thinking was a short-lets property and/or airbnb for the time that we won't be using it.

Has anyone done this? Any advice? We'd need to use a management company as we wouldn't be there.

We were thinking of going for zone 3 or 4 but close to a tube/train station and, ideally, a 2-bed house or share of freehold apartment.

Have you allowed for the fact that buying a property in London while living abroad will incur the extra 2% stamp duty land tax for non UK residents?

No, I hadn't. Ouch. I don't think that will change our plans as this is for the long term and not just a financial investment, not like we're trying to flip for a quick profit, but will need to budget for that extra expense. Thanks.

Indigo_and_Violet

On the flip-side, maintaining a 'family home' in London would help add weight to your home fee status argument and the savings from that might off-set the additional stamp duty. If you don't already have one, I would recommend starting a spreadsheet where you record all of your journeys home. Unless something changes in the next couple of years each university has to do their own fee status assessment so you end up filling in 5 long forms.

On the subject of your question, I have limited experience apart from knowing that near us (N4) hotel and AirBnB occupancy rates are therefore prices are still low. They've gone up a bit post covid but still nowhere near 2019 prices. If covid keeps going the right way I would expect the market to pick up a bit next year but at the moment it's still lean. 

If you have family friends in London have you considered any alternative arrangements? One friend (just back from Hong Kong) is staying in a family friend's apartment for half rent on the basis that the friends come to stay once a month. If you know someone who currently has kids at uni in London or has a recently graduated child they might be up for a similar deal. 

You have your own preferences but there is lots of discussion on this board about the difference between leasehold and share of freehold and personally, unless you own the whole freehold, I don't see share of freehold as that much of a better option than leasehold. With either SoF or leasehold you'll obviously need to check that short lets are allowed and make sure you declare any income in accordance with your current tax arrangements. 

michael1234

SDLT_Geek said:

pettelly said:

We live abroad where we rent. For various (family) reasons, we have sold our family home in London. We don't want to buy where we live now as it wouldn't be a good investment. Even though we have no plans to return to the UK imminently, we will do eventually. Plus our teenage kids are all planning to study in the UK (from Sept 2023 onwards) and we also visit quite often. So we were thinking that it would be great to use the money from the sale of the family home to still have a base in the UK, ideally in N/NW London near our family and friends for us to use  for holidays and visits and for the kids to have a home base for weekends and holidays when they are at uni (we live  long haul flight away). However, obviously we wouldn't want it to stand empty most of the time so what we were thinking was a short-lets property and/or airbnb for the time that we won't be using it.

Has anyone done this? Any advice? We'd need to use a management company as we wouldn't be there.

We were thinking of going for zone 3 or 4 but close to a tube/train station and, ideally, a 2-bed house or share of freehold apartment.

Have you allowed for the fact that buying a property in London while living abroad will incur the extra 2% stamp duty land tax for non UK residents?

Presumably if they say to their solicitor that they plan to live there they will not be liable for the 2% ? I don't know that though - I guess with a name like yours you are the expert !