Moving abroad: What to do with my house?

Dancing_Girl

I am planning to move abroad so that I can be closer my dad. I am in a bit of a situation with the house that I live in. Currently it is mortgaged with a decent equity and I do wish to return to it in nearer future as I love the place and the area. I was thinking of renting it out but had a horror experience before on a different property. I know not all tenants are the same …So not sure if I should explore this option?

The other option may be is to downsize and move out of London and become mortgage free and then rent out.

Any advise on what do with it?

elsien

Do you have a rough idea how long you might be away for?

MEM62

Both having an empty house and a rented house carry risks - albeit very different ones. Based on your future plans and time-scales you need to decide what risks you are comfortable with. It's a judgement call that we cannot make for you.

Sam_666

Renting out is very bad idea, too many resons to list.

Empty house is durable if you have someone trustworthy to check house frequently.
Otherwise, you need to travel back to check on house periodicly. Also, house insurance have clause limiting time of empty property. Mortgage might have clause also about property occupation.

Selling out to rent is also equaly very bad idea.

Dancing_Girl

@elsien - I am looking at few years.

TadleyBaggie

I moved abroad for 3 years and rented out via a local estate agent. The first 2 1/2 years was fine as the couple renting were perfect. The last 5 months we had a short term tennent that left the house in a real mess.

With hindsight I should have sold up, as house prices crashed a year or so later, and when I got back I ended up working 80 miles from home and had to sell up anyway (at a much price).

thegreenone

Can you sell up and find a lock up and leave flat in your chosen area?

mlz1413

It might be worth looking at the Guaranteed Rental Schemes (Northwood are an example). You will need to read the T&Cs carefully.

Selling makes it simpler as you don't have any commitments in UK. But the risk is prices being well beyond current prices when you come back.

Do you think if you invested the money whilst you live aboard that you would be happy with the amount when you return? Asnits the same gamble as the other 2 options!

sheramber

You will have potential capital gains tax to pay for the time it is not your main home , when you sell it.

_Penny_Dreadful

https://forums.moneysavingexpert.com/discussion/comment/81870589#Comment_81870589

I would wholeheartedly recommend avoiding guaranteed rental schemes. Firstly, your property will be let on a commercial basis to Northwood or whomever is offering the guaranteed rent scheme which will likely be against the T&C of your lender's consent to let which will expect you to let the property using an AST. Northwood or whomever will then sublet the property and you will have no say at all in who is living in the property. You've been promised a guaranteed rent so they are unlikely to care who they put in the property. Since it's not an AST it can be difficult to end the tenancy. Even with the Renters Rights Bill there's Section 8 ground 1 for the landlord to apply for a possession order. Can't use Section 8 for a commercial tenancy.

There's potentially also issues with insurance for a property let on a non-AST basis.

_Penny_Dreadful

https://forums.moneysavingexpert.com/discussion/6653820/moving-abroad-what-to-do-with-my-house

I have done this very thing.

Initially I left the property empty because I didn't anticipate being away as long as we were. You need special unoccupied property insurance which generally requires someone to check on the property at least once a week. You also need to completely drain the pipes or maintain the heating to a minimum temperature at all times, I think my policy was 15 deg C.

With an empty property you also have to look at your local authorities council tax penalties for having a empty property. After a period the council tax usually increase by 200% and after 5 years by as much as 300%.

Once it was clear that I was going to be away for longer letting the property made more sense. I applied for consent to let from the mortgage lender and spent time looking for a decent letting agent. Don't be fooled. The first person you meet is usually the owner/franchisee and they may seem professional and capable. Once you've signed up they pass you on to the rest of the team who can be absolute turkeys.

If you do decide to let the property, I'd recommend letting the property on an unfurnished basis and either sell your belongings or put them in storage whilst you're away. You also need to emotionally detach from the property. It was your home, it's now the tenant's home and be prepared to redecorate if you move back in.

I wouldn't sell to buy outright in an area you possibly don't know that well and wouldn't want to move to when you return.

There's always the option of selling the house and investing the money until if/when you're ready to buy again.