To sell or Let your house in the UK

abourmike

Just about to put the house on the market in the UK to get ready for the big move, but I'm now in a bit of a dilemma. If the house is not signed sealed and delivered before we go, then I am very tempted to put the house up TO LET.
Has anybody else had experience of this? Are there any complications regarding tax etc?

Any comments would be appreciated.

Cheers.

Graham Barnes · Posted: Thu Apr 22, 2004 9:35 am Post subject:

No real problem I think. My brother moved to NZ 2 years ago, and has continued to rent out his old flat. We'll be in the same situation later in the year when we move out.
You pay UK income tax on rent, less expenses such as repairs, mortgage interest etc. All done at the end of each tax year with an annual return (as if you would do if you still lived in the UK). In practice, this means that most people little or no tax, if you manage it carefully.
But I'm not sure if you still get your tax allowances. On balance, you probably don't because you will not be resident in the UK...but I need to check up on this myself.
Our mortgage company (C+G) are happy, perhaps because our property is currently let out at the moment anyway. They just need new contact details and a UK contact person in case of emergencies. Be careful with your mortgage though...if you're on a fix or other deal, when it comes to an end, they may not let you take out another residential deal. They may insist on the standard rate or a specific buy-to-let. But this depends on the company; ours are happy for us to move to another special deal but this is unlikely to be common practice.
Check with your insurance companies (buildings and life) that they are happy...shouldn't be a problem as NZ is pretty comparable to UK for risk etc.

Graham