Ditching the flat for van life: What would you do?

RAS

You really really do need to look at the whole issue of renting out your property.

You'll need consent to let and then a BTL mortgage.
You cannot just move back in when you want to. Only the tenant or courts can terminate a tenancy.
You have to have excellent trades to sort out repairs and maintenance.
If you use an agency to manage the property you remain legally liable for any and all errors, and that may prevent you evicting the tenant or may cost you a 3-4 month penalty. Agents need no training at all.
You need to have the funds to pay the mortgage for 18 months when the tenant from hell fails to pay, and even more to repair the place if they've been growing.
And then you need to think about HMRC and their rules, about income tax and about registration if you leave the UK for longer periods, and CGT when you sell. 

Slinky

I haven't even considered going abroad or anything yet but the thought is exciting. I'll probably spend this summer exploring the UK and then if I enjoy it, broaden my horizons! Where abouts have you been? 

France, Spain, Portugal, Andorra, Italy, Austria, Slovenia, Croatia, Czech republic, Liechtenstein, Switzerland, Germany, Luxembourg, Belgium, Netherlands.

We're thinking of Denmark/Sweden in the summer but will likely decide last minute, depending on the weather.
We're sun lovers and generally head south, we do have a concert booking in Amsterdam, so this might influence plans...
That's the beauty of van life, no need to plan ahead. Other than Eurotunnel booking, everything else is flexible...

Presumably you do have to factor in the 90 days in 180 in Europe with the Brexit gift that keeps on giving.

Tucosalamanca

Slinky said:

I haven't even considered going abroad or anything yet but the thought is exciting. I'll probably spend this summer exploring the UK and then if I enjoy it, broaden my horizons! Where abouts have you been? 

France, Spain, Portugal, Andorra, Italy, Austria, Slovenia, Croatia, Czech republic, Liechtenstein, Switzerland, Germany, Luxembourg, Belgium, Netherlands.

We're thinking of Denmark/Sweden in the summer but will likely decide last minute, depending on the weather.
We're sun lovers and generally head south, we do have a concert booking in Amsterdam, so this might influence plans...
That's the beauty of van life, no need to plan ahead. Other than Eurotunnel booking, everything else is flexible...

Presumably you do have to factor in the 90 days in 180 in Europe with the Brexit gift that keeps on giving.

Yes, you do need to bear the 90 day rule in mind. At this moment I'm more concerned about potential ETIAS delays (should it eventually happen).
There are workarounds, French six month tourist visa, or leaving Schengen area to extend duration of trip for example.
I was keen not to bring Brexit into it. The current situation isn't perfect but it's not nearly as bad as some would have you believe. As much as I love visiting Europe, there's a whole world out there ready to explore...

solidpro

Sounds like a dream that quickly becomes a nightmare.

Martico

Some countries (Spain and Portugal I think plus others) also offer (year-long?) digital nomad visas, which may be worth exploring

CCG___87

solidpro said:

Sounds like a dream that quickly becomes a nightmare.

That’s the nature of life—every dream has its trials, and every nightmare has a lesson. It’s all about perspective. If you spend your life worrying about what could happen, it's not much of a life in my eyes.

morgmonster

I would say the van life part sounds great. The becoming a landlord part... not so appealing!! You sound sure that the rental will cover the mortgage (and other costs), is that realistic on a 4.7% mortgage? The new Renters rights bill may be relevant too as it bans no-fault evictions, so you won't necessarily be able to evict tenants from your flat if you want to come back and live in it. 

nottsphil

Even if your property makes no capital gain from when you let it to when you come to sell, I believe HMRC calculate the whole profit from when you first bought it and then pro rata the period for which it was not your main residence. Happy to be corrected though!

RAS

nottsphil said:

Even if your property makes no capital gain from when you let it to when you come to sell, I believe HMRC calculate the whole profit from when you first bought it and then pro rata the period for which it was not your main residence. Happy to be corrected though!

Essentially correct for CGT. Although you are allowed 9 months rental relief at the end. 

It's being taxed on the full rental in income less the tax credit on mortgage interest that going to hit the OP. They are a higher rate tax payer so will  pay that on the whole income but the tax credit is at basic rate.

auser99

Found this thread quite interesting, as coincidentally my oldest pal just moved into a van last week.
Beautifully timed for the coldest week in a year!

Totally different scenario to the OP, as he's not got even a tiny amount of their resources as a backup.

For what it's worth - the key points I've gleaned so far are

• He's spent a few thousand on even the most basic small van (Fiat Fiorino?), plus heater and a lot of fittings to prevent condensation and dripping (!)
• He's had to scout out "safe" neighbourhoods to park in, or out of the way carparks
• He's relying on family to look after his more expensive possessions and get washing / meals etc
• Plus he can do certain things at his place of work (caretaker), albeit not stay on their land outside of hours etc.
• He doesn't half like a drink, so you have to be very careful i'd imagine to ensure you don't for a second get in a position you could be accused of being over the limit in charge of a vehicle etc (contemplating a little locked box to put the keys away when asleep etc)
• It's a trial for a few months potentially to save a few k up.