Can I let my house out for 1 year or less?

Rodders53

Wait!  Invest the money wisely with easy access for when you need it to purchase a property of your choice.

June 2025 is only nine months away!

Purchasing a property can easily take that long to reach completion / moving in... 

First you need to find one you want and agree to buy... Then the current owner needs to find somewhere to buy... and so on to form a purchase chain.

Surveys need to be done and mortgages need setting up/arrangine and then there are Solicitors and Searches and Enquires to be done...

Rarely things happen quickly with cash sales and short chains; but even those are around the 3 months from viewing to completion!

One issue you have is viewing properties in an area far from your current location (as well as finding out about the locality if you are not familiar with it).

Danceswithfishes

p00hsticks said:

Danceswithfishes said:

I even thought about renting out the two bedrooms of the property (rent a room scheme), but would it mean I have to furnish the entire house in addition to the bedrooms? 

I don't believe you can use the rent a room scheme if you are not actually living in the property yourself.  

I'm with Mark_D - there is too much potential downside.
Find the best short term savings account to put the money and then look for a home when you are actually ready to move.  

Thanks for clarifying.  I get it now

Danceswithfishes

vacheron said:

We (actually my wife) suggested buying a nearby flat as an investment to rent out at a cost of approx £150k a few months ago. 

£150k property rental income: Approx £550pm before tax.
(This is before agent fees, vacancy, cas certs, insurance, damage, cleaning, maintenance, tax etc.).
Effort / hassle - large, 

Put the £150k in the bank instead at 5%.
Interest income £625pm before tax. 
Effort / hassle - virtaully zero. 

Had I put it in my HSBC Global Strategy Dynamic fund in my GIA account for the last 12 months:
Average investment growth over the last 12 months £2,313pm.
Effort / hassle - virtually zero. 

We did not buy the property! 

Wow. Thanks for the advice.  I will look into it asap!

Danceswithfishes

gwynlas said:

If you are thinking of buying a home for life then invest the money until you are ready to move.

Explore the area where youu think you might want to live carefully to ensure it is future proof in terms of amenities such as shops, transport etc. following local news on line.

Does your child have an idea on where they might choose to attend uni after A levels  and would this be commutable from your new home?

Letting a room or rooms would be a good way to help with costs in the future but living with strangers might be difficult so you should also think of this when purchasing as you could then think of giving them an ensuite room so they are self contained.

Thank you for your input.  My son is going to uni in the south. Completely unaffordable for me. Plus he won't be there forever. God only knows where he'll find a job and putting down roots.  In the meantime the area I'm looking at is about 3.5 hours away, which is not that bad.
I'm not too keen on having a lodger, but it may be necessary to supplement my income.  

Albermarle

Danceswithfishes said:

vacheron said:

We (actually my wife) suggested buying a nearby flat as an investment to rent out at a cost of approx £150k a few months ago. 

£150k property rental income: Approx £550pm before tax.
(This is before agent fees, vacancy, cas certs, insurance, damage, cleaning, maintenance, tax etc.).
Effort / hassle - large, 

Put the £150k in the bank instead at 5%.
Interest income £625pm before tax. 
Effort / hassle - virtaully zero. 

Had I put it in my HSBC Global Strategy Dynamic fund in my GIA account for the last 12 months:
Average investment growth over the last 12 months £2,313pm.
Effort / hassle - virtually zero. 

We did not buy the property! 

Wow. Thanks for the advice.  I will look into it asap!

The advice is good but just be aware that interest from a savings account is taxable above a certain amount ( depending on how much other taxable income you have) + you can save £20K in a cash ISA tax free.
However the tax is only 20% of the interest, so if you had an account earning 5%, effectively you still get 4 %.
An easy access savings account is convenient but the interest rate can change at any time. If you fix for a year, you can not get the money out earlier. Swings and roundabouts.
You should not save more than about £80K with any one savings provider.
You may wish to read this.
Savings - All Guides - MoneySavingExpert