Hi all,
We are thinking of either selling or letting our house as we'll be moving abroad. In our new country, we will be renting for the first year or so until we are sure that this is a long term move. If we sell now we will have a lot of money sitting in the bank and the pound/euro exchange rate isn't favourable (who knows it might get worse with Brexit). We have paid off two thirds of our mortgage.
Is anyone else letting a property from abroad? I would be very grateful if you can tell me about all the things we need to consider. This is what I found so far:
- We are with HSBC. I need to ask them if we can move our mortgage to a BTL mortgage. We are still another 2 years on a fixed interest rate. What costs should I expect?
- Tax
- I read that we will have to pay 20% tax on the rental income. Is that correct?
-What can we deduct from it?
-Is there an allowance if we are non residents? We are EU citizens but have PR in the UK.
- What if tax on rental income is higher in our new country? Do we just pay the difference in the new country? There is a double taxation agreement in place).
- Other things: Get a gas certificate and a buildings insurance for BTL. How much are those approximately?
- How much does it cost for an agent to manage our property?
- Will we have to pay capital gains tax if we sell our house in 1-2 years?
- Anything else that I have forgotten?
Sorry, for all the question. I hope someone else has been in a similiar situation. Thanks so much!