Letting home out long term (5 years +)

longwalks1

Just forward planning at the moment, an idea I want to look into.  

47 years old, house worth £600k with £200k mortgage with Barclays (split over 3 separate mortgages with different rates).  

All 13 years remaining (give or take a couple of months).  

The 3 different rates are from moving house and borrowing more, plus the original ported mortgage, then a smaller amount for full home renovation that was needed).

I’d like to spend several years overseas renting within the next few years, but keep my house back here and rent it out.  

Im assuming I’d need to remortgage as a BTL?  Or can I let it long term as is?  I’d use a letting company for the security and to manage it, and would only be relying on the rental income to cover the mortgage (plus any extra as a bonus) 
house would rent for £2000 pcm, mortgage is £1350 pcm

is there anything I need to consider, or do?  Just at the putting ideas on paper stage at present

silvercar

You would need consent to let as a minimum, for 5 years a lender may require a switch to a BTL mortgage.

Investigate the tax situation, both for your position as  an overseas landlord, where the letting agent is required to deduct some tax before transferring the rent to you and also the mortgage expense tax restriction. This is a good starting point https://taxscouts.com/calculator/rental-income-tax/

Newbie_John

After 5 years abroad your plans could heavily change..
You could sell a house, put the £400k in various savings and live of interests.

tacpot12

You will have a lot of responsibilities as a landlord. Some of these are hard to discharge when you are living overseas. Are you sure you want the worry of letting your house out while you are abroad? 

longwalks1

Newbie_John said:

After 5 years abroad your plans could heavily change..
You could sell a house, put the £400k in various savings and live of interests.

That thought had been considered, especially if I decided to stay living overseas.  But at presents there’s that tiny ‘what if’ I wanted to return to the UK in later life, would be nice having somewhere to return to (I know it would need money spending on it to bring it up to date) 
id hate to cut all ties and not be able to return.
i do have savings I am continuing to add to, and a pension that I will draw at 57 (unless the age increases again) 

longwalks1

tacpot12 said:

You will have a lot of responsibilities as a landlord. Some of these are hard to discharge when you are living overseas. Are you sure you want the worry of letting your house out while you are abroad? 

I was thinking if I use a reputable letting agent who covered most things it would be less stress.  Even if it costs me more each month in fees.  I have several friends in various trades who live locally who I could use still, if needed,