Moving abroad: What to do with my house?

Dancing_Girl

https://forums.moneysavingexpert.com/discussion/comment/81871140#Comment_81871140

Getting this house was a dream, spent decent sums doing it up in the last few years. I don’t think I can afford to move back in this area if I sell. The house prices have increased significantly and I would struggle to get back on the property ladder. I still have a decent equity tied into the house and would want to return to it.

WIAWSNB

https://forums.moneysavingexpert.com/discussion/comment/81873884#Comment_81873884

Slinky: "Don't rent out a home you have an emotional attachment to.

We rented out my home when I first moved in with my OH. All of the 4 lots of tenants in 3 years damaged the house in small ways and peed me off, just by living their lives. We moved back in eventually, and it was a relief to get it back, but for example we were left with dings in skirtings and woodwork up the stairs where furniture had been dragged in and out. Plants had been removed from the garden, etc. I redecorated after some random viewer said my bedroom decor was 'dated'. I loved it, but apparently it wasn't everyone's taste. That person didn't even rent the house. It was a necessary evil, but if it's your been your home, tenant damage seems way more personal than if it's just a property you own with the intention of renting it out."

It's good to have real-world examples, and yours highlights the main potential 'con' of renting it out.

Could I ask,

1. How long did you rent it out for?
2. Did you do so privately, or use an agent?
3. Did this agent carry out the required regular checks? If so, what did they report back?
4. Did you recoup the deposit to cover this obvious damage?
5. Were you out of pocket due to this damage?
6. How much did the property earn you over this time?
7. How long did it take for you to get over the shock and disappointment?
8. Did this house 'mean' a lot to you - did you want to hold on to it rather than sell?

Thanks.

WIAWSNB

https://forums.moneysavingexpert.com/discussion/comment/81873899#Comment_81873899

1. Getting this house was a dream.
2. Spent decent sums doing it up in the last few years.
3. I don’t think I can afford to move back to this area if I sell.
4. The house prices have increased significantly, and I would struggle to get back on the property ladder.
5. I still have a decent equity tied into the house and would want to return to it.

I really think you've answered your dilemma. :-)

You just need to find a decent agent who properly vets their tenants, and carries out the required checks. Chances are the new occupants will respect it - the vast majority do so. Only a small minority don't treat a home with respect.

And the worst case scenario isn't that bad, and is totally overcomeable. And and this house will earn you many £ks whilst you are away.

Albermarle

You just need to find a decent agent who properly vets their tenants, and carries out the required checks.

That would be a challenge in itself !

Slinky

https://forums.moneysavingexpert.com/discussion/comment/81874280#Comment_81874280

Could I ask,

1. How long did you rent it out for? 3 years. Four different tenants in that time. One lot did a flit back to South Africa mid-tenancy leaving loads of unpaid utility bills, fortunately we did get paid.
2. Did you do so privately, or use an agent? 2 different agents
3. Did this agent carry out the required regular checks? If so, what did they report back? Yes, all reported everything was OK
4. Did you recoup the deposit to cover this obvious damage? No
5. Were you out of pocket due to this damage? Not particularly. It was minor but eyecatchingly annoying. Corners scraped off the stringers up the stairs. Difficult to repair. And every one of the 4 lots of tenants had satellite TV installed, none asked for permission, every time the installers drilled new holes in the walls. Two dishes left up on the house when we got it back. Smoke smell in our bedroom which was difficult to get rid of.
6. How much did the property earn you over this time? Can't remember, it was over 20 years ago.
7. How long did it take for you to get over the shock and disappointment? Maybe a couple of years as we redecorated and made it ours again
8. Did this house 'mean' a lot to you - did you want to hold on to it rather than sell? Absolutely wanted to keep it in case things didn't work out with OH. We moved back in and lived there for another 15 years.

SiliconChip

If you keep the house do you need the full market value from letting it in order to afford to keep it? If not then another option you could consider is property guardianship, here's one example of a provider in London. One advantage is that the occupier lives there under licence rather than with a tenancy so you'd only need to give 28 days notice to regain occupancy when you return.

https://thelowegroupltd.com/guardians/

WIAWSNB

https://forums.moneysavingexpert.com/discussion/comment/81874542#Comment_81874542

Thanks for that, Slinky.

Yes, something for anyone renting out their own home to bear in mind. Sounds very unfortunate for you, and very unlucky - but I don't think it's typical?

From what I gather, Dancing Girl should earn a decent amount from renting out, so even your unfortunate situation should be very putrightable, and she'd still be quids in - and still own her loved home.

I know what I would do in her situation, but it's obviously her call.

poseidon1

The effect of tax on overall rental return has not been mentioned as well as the potential cost of employing an accountant if OP does not feel up to doing this herself.

OP should therefore understand the default non resident landlord tax compliance regime, unless HMRC approves her for gross rental receipts and therefore self assessment of her tax obligations in the usual way - see below

https://www.gov.uk/government/publications/non-resident-landord-guidance-notes-for-letting-agents-and-tenants-non-resident-landlords-scheme-guidance-notes/what-the-non-resident-landlords-scheme-is

Worth pointing out, unless mortgage is changed to interest only, rental profit will likely diminish since mortgage capital payments are not tax deductible.

Intially, may need to seek consent to let from exsisting lender, but that might only result in granting relatively short term permission on pre- exsisting mortgage terms. Remortgaging to a proper interest only BTL mortgage may prove necessary the longer she remains absence- following article explains-

https://www.comparethemarket.com/mortgages/content/consent-to-let/#:~:text=Lenders%20normally%20only%20give%20you,to%20accept%20your%20lender's%20offer.

If OP decides to go down the landlord route, she would be well advised to subscribe to the NRLA and take advantage of the educational material they make available to new landlords. It is a steep learning curve.