grada Posted September 27, 2013 Share Posted September 27, 2013 (edited) (Sorry that should read 'Buying UK house while Aus Resident!) Hi, After a bit of advice, or wonder if anyone has been in a similar situation. We are currently residing in Aus but know that we'll be moving back to the UK, realistically within the next couple of years (it's where we want to be long term). Really at the stage of life where we need to be back on the property ladder, and want to buy my long term family home, have had a house before (sold and equity now in UK bank). Currently renting here in Oz (don't enjoy renting!), and could realistically buy here but don't want to if we are going home. Trying to research possibility of expat mortgages etc (a minefield!), in order to buy a UK house, which we could rent out until our return, then move in ourselves. Plan would be for a long holiday in UK soon to view properties, talk to lenders etc, but just wondered if anyone else had been done this or knows anything about it? Edited September 27, 2013 by grada wrong title Quote Link to comment Share on other sites More sharing options...
fourcorners Posted September 27, 2013 Share Posted September 27, 2013 Hi Grada, We went back to the UK at Easter and met with our current lender in the UK (we have a house in Cornwall). We were looking into the possibility of getting another mortgage or extending our current one. We were told that they (LLoyds TSB/C&G) had put a hold on doing expat mortgages, and there wasn't a way around it with them. When we returned we had the opportunity to buy another house and we needed 50k extra to get it. We researched lots of options and in the end we couldn't borrow 50k. But we did discover that Barclays are doing expat mortgages, but only for loan amounts of more than 100k. For that you need a deposit of at least 25%. If you can satisfy those criteria then it may be worth you speaking to Barclays. We were told that they think rules may be relaxed more soon but I haven't looked into it any further as we ended up using our sister in law as the 'bank'. We've since paid them off so we own the other house outright which is always nice! If you want to rent it out make sure you get a decent agent to manage it that has experience of dealing with landlords who live abroad. You will need to apply for the 'Non-resident landlord scheme' which means the agent won't tax your rental income. But it does mean you have to do a UK tax return (which isn't as bad as I thought it would be). Also find a good solicitor to deal with your house purchase who is prepared to email you documents etc. We used the ones we used for our first house purchase, and they were also dealing with the deceased's estate we acquired the house through so they knew us and we didn't have to provide as much proof of ID. So much the better if you can sort your solicitor out while you're in the UK, just remember to take proof of ID and address with you. Renting our house out has worked for us, we are currently trying to get tenants for the second and it's nice having the knowledge we have a choice of houses to return to, hopefully rent and mortgage free by the time we get back (unless the exchange rate goes t**s up!). Quote Link to comment Share on other sites More sharing options...
grada Posted September 27, 2013 Author Share Posted September 27, 2013 Many thanks Fourcorners, Great advice, I was aware that Lloyds had recently pulled out of overseas lending, I had heard about Barclays, and I think HSBC do as well, but the deposits are always higher, think we may be able to stretch to 25% but only just! Maybe easier to wait and buy once we are settled back in UK, but times ticking and probably would want to move quicker than planned in order to buy, wheras we are financially in OK position here (just), but know we need to be home at some point. We are from Cornwall too incidently! Love it and that's where we'll be going back to. Sounds like your in an excellent position house wise (jealous!). Will try for further research and get some appts booked with lenders, I know I'm looking far far ahead but like to have a plan! Quote Link to comment Share on other sites More sharing options...
Guest GeorgeD Posted September 27, 2013 Share Posted September 27, 2013 (Sorry that should read 'Buying UK house while Aus Resident!) I've edited the title for you Quote Link to comment Share on other sites More sharing options...
fourcorners Posted September 27, 2013 Share Posted September 27, 2013 It is a nice feeling to be in this position, but we've worked damn hard for it! But yeah we would happily give one of the houses back to have my partner's Dad back, don't be jealous of that. Our Cornish house is near Redruth, about 2.5 miles down the road from Portreath. Not the most glamorous area but I thought it was a fantastic location. Less than 30 minutes drive gets you to Truro, Falmouth, St Ives or Newquay, and less than 3 minutes to the A30. I hope we can live there again one day as I have big plans for the house, could really add some value as right now it's the cheapest house in the area, everything else is 400k+. We were back there at easter, going down the M5 just felt like going home. My partner is from Devon I am originally from Derbyshire/Yorkshire but the West country feels like home to me, as I spent 4 years at uni there then 2 years working there in between Oz stints. Have fun property hunting and hope you find your dream house! I'm still addicted to checking out Right Move! I have noticed that the market is fairly stagnant in Cornwall/Devon and lots of properties have gone through a number of agents, lots of price drops for property in the 250-300k price bracket that have been on for 6+ months. So you may be able to get some cheeky offers in especially as you'll have no chain. Our sis in law is trying to sell their house which has been on the market over 12 months and hardly had any viewers. Such a nice house too but reality is they probably need to drop the price. Quote Link to comment Share on other sites More sharing options...
newjez Posted September 27, 2013 Share Posted September 27, 2013 I don't see why it would be different to any other buy to let mortgage. You need to arrange to talk with some banks/mortgage brokers. (Sorry that should read 'Buying UK house while Aus Resident!)Hi, After a bit of advice, or wonder if anyone has been in a similar situation. We are currently residing in Aus but know that we'll be moving back to the UK, realistically within the next couple of years (it's where we want to be long term). Really at the stage of life where we need to be back on the property ladder, and want to buy my long term family home, have had a house before (sold and equity now in UK bank). Currently renting here in Oz (don't enjoy renting!), and could realistically buy here but don't want to if we are going home. Trying to research possibility of expat mortgages etc (a minefield!), in order to buy a UK house, which we could rent out until our return, then move in ourselves. Plan would be for a long holiday in UK soon to view properties, talk to lenders etc, but just wondered if anyone else had been done this or knows anything about it? Quote Link to comment Share on other sites More sharing options...
grada Posted September 27, 2013 Author Share Posted September 27, 2013 It is a nice feeling to be in this position, but we've worked damn hard for it! But yeah we would happily give one of the houses back to have my partner's Dad back, don't be jealous of that. So sorry about your loss, apologies if I sounded insensitive, I didn't read the post properly, I know what it's like to lose a parent. Quote Link to comment Share on other sites More sharing options...
fourcorners Posted September 27, 2013 Share Posted September 27, 2013 So sorry about your loss, apologies if I sounded insensitive, I didn't read the post properly, I know what it's like to lose a parent. Don't worry, not insensitive at all. We do realise we are in a fortunate position financially just wish it wasn't this way. Been very hard to cope being so far away and still don't have closure on the situation, but time heals. Makes you reassess your priorities for sure. Quote Link to comment Share on other sites More sharing options...
RoseBrown1972 Posted September 30, 2013 Share Posted September 30, 2013 Try liquid expat shield, we have just bought out my brothers share of my parents house that we rent out. Mortgage with clydesdale. Had no issues but i did own half already, have a tennant and have good salaries here that could cover the mortgage if he left. Expat shield know we plan to return but that wasn't told to mortgage co Quote Link to comment Share on other sites More sharing options...
RoseBrown1972 Posted September 30, 2013 Share Posted September 30, 2013 Sorry liquid expat mortgages! Not expat shield! Duh! Quote Link to comment Share on other sites More sharing options...
grada Posted October 2, 2013 Author Share Posted October 2, 2013 Try liquid expat shield, we have just bought out my brothers share of my parents house that we rent out. Mortgage with clydesdale. Had no issues but i did own half already, have a tennant and have good salaries here that could cover the mortgage if he left. Expat shield know we plan to return but that wasn't told to mortgage co Thanks Rose, will look at that, we have just found a nice property that I am asking my friend to look round and send reports etc. Have worked out that we may also be able to cover Mortgage in cases of no tenancy also, but will have to fine tune the maths when have had discussions with lenders. Good to see that it may be possible and others have managed it. Quote Link to comment Share on other sites More sharing options...
Sydney Posted October 4, 2013 Share Posted October 4, 2013 (Sorry that should read 'Buying UK house while Aus Resident!)Hi, After a bit of advice, or wonder if anyone has been in a similar situation. We are currently residing in Aus but know that we'll be moving back to the UK, realistically within the next couple of years (it's where we want to be long term). Really at the stage of life where we need to be back on the property ladder, and want to buy my long term family home, have had a house before (sold and equity now in UK bank). Currently renting here in Oz (don't enjoy renting!), and could realistically buy here but don't want to if we are going home. Trying to research possibility of expat mortgages etc (a minefield!), in order to buy a UK house, which we could rent out until our return, then move in ourselves. Plan would be for a long holiday in UK soon to view properties, talk to lenders etc, but just wondered if anyone else had been done this or knows anything about it? I did this several years ago and had no problem raising a UK mortgage based on my Australian earnings. The bank then told me I wasn't allowed to put tenants in and threatened me with all sorts of legal proceedings and I decided to sell it on after a year. Best to let the bank know your intentions about renting it out. Years on, I still have problems with UK banks. Quote Link to comment Share on other sites More sharing options...
grada Posted October 5, 2013 Author Share Posted October 5, 2013 I did this several years ago and had no problem raising a UK mortgage based on my Australian earnings. The bank then told me I wasn't allowed to put tenants in and threatened me with all sorts of legal proceedings and I decided to sell it on after a year. Best to let the bank know your intentions about renting it out. Years on, I still have problems with UK banks. Thanks for that info, yes will be letting lenders know, some of the expat mortgages I have been looking at will let you rent your house for a few years before making the move back, either that then it's a buy to let mortgage with a view to changing mortgage later on. Quote Link to comment Share on other sites More sharing options...
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