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Sell or let?
tim reynolds
Posted: 10 December 2010 19:44:39(UTC)
#11

Joined: 02/05/2010(UTC)
Posts: 4

if you do decide to rent it out when you leave you have to fill in a form p85 or something . this discloses to hmrc any rental income you receive and as a non resident you have to have deducted 20 % tax at source from your rent. If you have an agent they have to deduct it -if you dont have an agent your tenant has to pay it! You still are entitled to you personal allowance and mortgage interest rates but you have to claim back the tax at a later date.I have three luxury flats in surrey rented out and dont use an agent. I havent had any problems perhaps I have been lucky but at the upper end you tend to get better tenants in fact all of my tenants keep the flats cleaner than I did - they are all female. I have used gumtree and always let my flats quickly. Dont forget agents will charge c 10% minimum plus 20 % vat plus all the extras. eg I recent got a gas safety check done on another house I have rented I paid £50 - a friend of mine who uses an agent got charged £89 plus vat for this. Letting agents are out to make money and they will load up on other services or be on commissions etc for cleaning plumbing you name it.
ArianAdar
Posted: 11 December 2010 19:31:18(UTC)
#12

Joined: 25/01/2010(UTC)
Posts: 7

If you will need a mortgage to buy another property when you get back in 2-5 years time, bear in mind that the FSA is already tightening lending rules and it is unlikely that you would get another loan easily in 5 years time with no UK income to show. Your exisiting loan can probably be ported to a new property in future, avoiding the hassle of finding a new lender when you are unfamiliar with new rules.
I suggest that you rent. Make sure that your lender agrees to this first.
Another thought. If you can arrange a fixed rate loan on a buy to let mortgage for the next 5 years you will know your outgoings and should have enough cash spare to cover voids.
Ref tax, yes an agent has to deduct 20% from your rental income, but if the property has been your main residence in UK and you later let it out, you can disregard the last 3 years profit when you sell, plus £40k residency exemtion. If you own it jointly the £40k doubles as you each have the allowance. (This is how the MPs have legitimately got away with CGT on their flats etc.)
Even if the tax rules change while you are away you will still have a property in UK which is one of the most valuable things you can own. I dont know how old you are but the ability to transfer the mortgage to another property; the option to draw off more capital by remortgaging later; and the eventual option of equity release when you are much older all combine to make selling a foolish choice, particularly in today's markets.
Ask around for an agent, get references, make sure they are a member of a national professional body.
KEEP IT.
steve hawken
Posted: 13 December 2010 11:43:40(UTC)
#13

Joined: 12/08/2010(UTC)
Posts: 2

Thanks everyone for your thoughts. I think there's good arguments either way for us to mull over. A visit to a couple of financial advisers I think will be the next step.
Thanks again
:)
Amelia Brown
Posted: 06 February 2013 11:52:47(UTC)
#14

Joined: 14/12/2012(UTC)
Posts: 12

I think you should sell now keeping the present London property market condition in mind. It might drop while you are away and there could be some more issues if you rent for 5 years. Think like a professional or consult your problem with a professional tax advisor. The rules on tax change depend on UK rights, and this is in turn affected by what you continue to do in the UK when you are abroad.
Alan Anderson
Posted: 06 February 2013 13:41:54(UTC)
#15

Joined: 02/04/2012(UTC)
Posts: 171

Amelia is a spammer across several forums at the same time.
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