Sell to buy outright or use rental for mortgage.

Retireby40

Situation.

Person born in the UK has a house owned outright there.

Now lives in a European country and is planning to be there for the foreseeable as has kids there.

May need to buy a house in the European country as separation is on the cards.

Could easily sell the house in the UK and buy an apartment in current country outright and have change left over.

On the other hand the house in the UK is generating around £400 a month in rental after all bills are paid.

Would you sell you house in the UK, buy outright in current country and not have the hassle of dealing with mortgages and things or would you use the rental income to pay the mortgage?

I have an idea what's best but always nice to hear other views.

MultiFuelBurner

How long is a piece of string without knowing the sale price of the UK house, funds for deposit and mortgage rates and age of person to buy abroad...and so many more questions the brain hurts.

Maybe get all the info you can first and post it

RAS

Have you got an HMRC agreement on the rental income?

Retireby40

RAS said:

Have you got an HMRC agreement on the rental income?

Yes.....why?

Retireby40

MultiFuelBurner said:

How long is a piece of string without knowing the sale price of the UK house, funds for deposit and mortgage rates and age of person to buy abroad...and so many more questions the brain hurts.

Maybe get all the info you can first and post it

House in UK value £140k.

Typical apartment price in current country £70-80k.

Age of person 38.

Savings of person £10-12k.

Salary: about 2k a month after tax.

MultiFuelBurner

Retireby40 said:

MultiFuelBurner said:

How long is a piece of string without knowing the sale price of the UK house, funds for deposit and mortgage rates and age of person to buy abroad...and so many more questions the brain hurts.

Maybe get all the info you can first and post it

House in UK value £140k.

Typical apartment price in current country £70-80k.

Age of person 38.

Savings of person £10-12k.

Salary: about 2k a month after tax.

Ok if they sold for 140k and bought for 70k after all fees  on 50k savings to add to the 10k so call it 60k you could get 5% interest so £3000 a year without the hassle of the UK property being in £4800 if continuously let and would own the apartment outright.

That's £150 a month difference but no mortgage required on the apartment but maybe some tax on the interest of the 60k savings.

Plenty of mixes to the above something more expensive, less savings or even two apartments and rent one out depending on that countries laws on renting and yield.

Retireby40

MultiFuelBurner said:

Retireby40 said:

MultiFuelBurner said:

How long is a piece of string without knowing the sale price of the UK house, funds for deposit and mortgage rates and age of person to buy abroad...and so many more questions the brain hurts.

Maybe get all the info you can first and post it

House in UK value £140k.

Typical apartment price in current country £70-80k.

Age of person 38.

Savings of person £10-12k.

Salary: about 2k a month after tax.

Ok if they sold for 140k and bought for 70k after all fees  on 50k savings to add to the 10k so call it 60k you could get 5% interest so £3000 a year without the hassle of the UK property being in £4800 if continuously let and would own the apartment outright.

That's £150 a month difference but no mortgage required on the apartment but maybe some tax on the interest of the 60k savings.

Plenty of mixes to the above something more expensive, less savings or even two apartments and rent one out depending on that countries laws on renting and yield.

Thanks for the input!!

Retireby40

RAS said:

Have you got an HMRC agreement on the rental income?

Ras I asked why to your question it would be polite to reply.

RAS

Retireby40 said:

RAS said:

Have you got an HMRC agreement on the rental income?

Ras I asked why to your question it would be polite to reply.

Because a large number of people who rent from abroad don't know that they need to make arrangements with HMRC re rental income.

It affects the sums.

steve866

On the face of it selling the Uk property seems the best option financially.

They may wish to keep the Uk property to emotionally keep ties to the UK. I also know people that emigrated and were priced out of the Uk market when they wanted to return many years later.

What about the new European city they are in now, are there indicators that property prices could be on the increase?

Retireby40

RAS said:

Retireby40 said:

RAS said:

Have you got an HMRC agreement on the rental income?

Ras I asked why to your question it would be polite to reply.

Because a large number of people who rent from abroad don't know that they need to make arrangements with HMRC re rental income.

It affects the sums.

I included my tax under when i said my take away was £400 after "all bills are paid".

So what do you think would be the best option giving the situation?