clairejs83 Posted October 4, 2014 Share Posted October 4, 2014 Hi, I'm aiming to be in Oz by next September, however I need to sell my property it's been on the market for 6months already and had no luck, and have no equity in the property. Does anyone know how you go about renting out your property so you can move? Thanks in advance Claire Link to comment Share on other sites More sharing options...
peterc1983 Posted October 4, 2014 Share Posted October 4, 2014 I believe my sister, when she did (and still does) exactly this, simply engaged a letting agency to look after her affairs whilst she's in Australia. She pays a fee to the agency who then try to ensure the property is not left vacant, and also facilitate the payment of the rent to her so that the mortgage is covered each month. Quite successfully, I should say, as it's not been vacant yet for 3.5yrs. Link to comment Share on other sites More sharing options...
clairejs83 Posted October 4, 2014 Author Share Posted October 4, 2014 Thank you peterc1983, Do you know if I have to change to a buy to let mortgage and if you do can you do it with no equity in the property? This flat is going to be the death of me and is the major thing holding me back from being able to get over there!! Argh!! Link to comment Share on other sites More sharing options...
peterc1983 Posted October 4, 2014 Share Posted October 4, 2014 Thank you peterc1983, Do you know if I have to change to a buy to let mortgage and if you do can you do it with no equity in the property? This flat is going to be the death of me and is the major thing holding me back from being able to get over there!! Argh!! In your case (I'm assuming); you got the residential mortgage in good faith, not intending to let the property. As such, you are obligated to let the lender know that you are not going to be resident there -- but this does not necessarily mean they will require you to change your mortgage in any way. They may be happy to allow you to keep all of your current terms. O The problem is that from a lenders point of view, the risk is higher if you are not going to be paying the mortgage directly as the residential mortgage was agreed with your particular wages/circumstances in mind. A tenant, on the other hand, could be shady; miss payments, dodge rent etc etc. This could mean to you not getting your rental income - which in turn means the lender won't get the mortgage payment. Bottom line: if you don't tell your lender of the change in circumstances and if the lender were ever to find out, they could withdraw any bonus rates you receive and/or alter the terms of your mortgage as it's tantamount to mortgage fraud. Be careful; read over your mortgage terms to check what is says in relation to letting. You will almost certainly be required to tell them. Now, all this said -- many people will do it anyways http://www.thisismoney.co.uk/money/experts/article-2462805/Can-I-let-new-house-telling-lender.html .. this article covers this exact question. EDIT: I should add, so I'm not scaring the bejesus out of you -- I know loads of people who do nothing at all when they start letting a property (albeit, none of them ever planned to from the outset). Now I'm also fairly sure none of them are even aware that they were meant to notify the mortgage lender. Similarly, none of them have ever had a problem with it. I'm not advocating or incriminating; just putting it all out there Link to comment Share on other sites More sharing options...
Gbye grey sky Posted October 4, 2014 Share Posted October 4, 2014 As it is a flat check any leasehold agreements on sub-letting. Also make sure you inform your home insurer. Link to comment Share on other sites More sharing options...
canadianaussie Posted October 4, 2014 Share Posted October 4, 2014 Where is the flat clairejs83? Do you have a link to it? Just curious as I'm starting to think about buying something... Link to comment Share on other sites More sharing options...
clairejs83 Posted October 4, 2014 Author Share Posted October 4, 2014 Thanks for all the information, I'm going to be spending the next few evenings looking through all my paperwork to see if I can find anything that will give me an answer. Failing that will have to phone up the mortgage company and speak to them. The property is in Halifax, West Yorkshire http://www.rightmove.co.uk/property-for-sale/property-45227789.html?premiumA=true Link to comment Share on other sites More sharing options...
MovingtoTasmania Posted October 4, 2014 Share Posted October 4, 2014 Claire, you need to contact the housing association too as they might not be agreeable to the sub-letting if it's shared ownership. Also, some HA's have waiting lists of people that want to buy shared ownership properties, have you asked them about this? Link to comment Share on other sites More sharing options...
clairejs83 Posted October 4, 2014 Author Share Posted October 4, 2014 Claire, you need to contact the housing association too as they might not be agreeable to the sub-letting if it's shared ownership. Also, some HA's have waiting lists of people that want to buy shared ownership properties, have you asked them about this? It is no longer shared ownership I have bought the other share the estate agent hasn't changed the website yet Link to comment Share on other sites More sharing options...
MovingtoTasmania Posted October 4, 2014 Share Posted October 4, 2014 Ah ok, but it might still be worth talking to the HA to see if they would be willing to buy you out and therefore be able to free up more housing stock. Link to comment Share on other sites More sharing options...
DivingMissDaisy Posted October 4, 2014 Share Posted October 4, 2014 We enquiries about this with our lender when we were debating on if we should sell up or rent it out. We were told that we could rent it out on our current mortgage for 12 months, after which we'd need to switch. We decided to sell, but unfortunately, no one has wanted to buy, so the renting route it is!! Link to comment Share on other sites More sharing options...
BrownEyedGal Posted October 5, 2014 Share Posted October 5, 2014 Slightly different - I had a house that I rented out via an agent. Never had so much hassle and problems in my life. In the end the renters left, there was damage to the property and the council tax, building insurance and bills still needed to be paid by yours truly. The agents could not do a lot of things on my behalf. A long and stressful story. Quite difficult to manage from abroad too with the time difference. So from my point of view, sell, sell, sell. Only keep if you have family / friends willing to be agents for you. Or if you find a really good tenant, that wants to make a home. BEGal Link to comment Share on other sites More sharing options...
Gbye grey sky Posted October 5, 2014 Share Posted October 5, 2014 Slightly different - I had a house that I rented out via an agent. Never had so much hassle and problems in my life. In the end the renters left, there was damage to the property and the council tax, building insurance and bills still needed to be paid by yours truly. The agents could not do a lot of things on my behalf. A long and stressful story. Quite difficult to manage from abroad too with the time difference. So from my point of view, sell, sell, sell. Only keep if you have family / friends willing to be agents for you. Or if you find a really good tenant, that wants to make a home. BEGal I have read so many stories like this I would never want to own a property and let it while on the other side of the world. I would sell even if I had to lose a bit doing it by dropping the price. But then again if you expect to be back in a year or two might be worth keeping it. Link to comment Share on other sites More sharing options...
ramot Posted October 5, 2014 Share Posted October 5, 2014 Been renting out property from overseas for over 20 years, and still do. yes there are horror stories, but we have always had good agents, and honestly never ever had a problem, so it can work. Link to comment Share on other sites More sharing options...
Dawn2002 Posted October 5, 2014 Share Posted October 5, 2014 We rent our place in the UK, for the same reason, we couldn't sell (without a huge loss), before we left. We use an agent to manage it, they take a percentage of the rent. ( haggle on the percentage we got them down by 2%). You will need to complete an NRL1 form for HMRC. We have had no problems with our tenant, just the managing agent, so we recently switched. We are also still in touch with our neighbours so I'm sure we would hear if they had any problems. Personally, I'm not comfortable with our biggest asset being on the other side of the world. We hope to sell next year. Just make sure all the sums add up before you decide to let. Link to comment Share on other sites More sharing options...
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