Sell or rent out house

[Movingon2024]

Wondering if anyone can help me decide as I'm on my own with this.

Moving abroad for work. Own a UK house, with 11 years of mortgage to go.

Unlikely to return to the UK but can't rule it out of course.

Had estate agent round. They said it would rent for more than mortgage payments - about £500 more/ month. Their fees would absorb £300 of this to fully manage, which I would need.

Sale value is around £550,000 (outstanding mortgage £150,000).

I've spent loads on it over the last 5 years so this would not quite cover costs. Plus keen to keep a UK base in case I do return/the Dcs eventually need it (both at uni).

On this basis it looks like renting it out - in an area of high demand - would be best. Mortgage gets paid, and also management fees; we keep the property, giving us potential entry back into UK housing market if needed: estate agent fully manages so minimal hassle for me.

What am I missing? Does this make sense?

Thanks

I'm normally pessimistic about buy-to-let but I think it could work for you. The big attraction is that you would have a property to return to if you come back to the UK. If you think your area could become unaffordable while you're gone it could be a big regret.

Tax and costs on BTL is a consideration - you might not have much left each month after mortgage/agent fees and tax is paid. You'll get some tax relief on the rent that's paid but there's admin faff via a tax return.

I don't think you'll have to worry about Capital Gains Tax as this would still count as your primary residence (someone may correct me on that?).

If you sold and put the money to use in investments elsewhere it's cleaner, with less tax to worry about, and with returns that could be comparable. However, investments are likely to be more volatile and more likely to suffer short term losses than a UK residential property in a nice area.