Hi all,

We are currently living in the far east and plan to return to the UK in a few years time. We would like to purchase a property that we come back to live in, but in the interim, rent it out. But where do I begin and how do I start?

Does anyone out there have any experience and if so, can you share your experience ? We have narrowed down to where we would like to live, but the details of viewing property, making an offer, the actual signing on the dotted line, finding a property management company etc etc. How many trips do you expect that we have to make back to the UK to do all this, if at all? I'd really appreciate if you can advise us on how we can go about the entire process of buy to let from overseas. Many thanks.

You need an ex pat mortgage. These are available to expats who are working overseas, the criterea is rather strict and decent deposit is required. Please let me know if you need any advice as i am a whole of market mortgage broker....

Yes please. I need advise on the entire process. Not sure if I understand you correctly, are you an expat-mortgage advisor?

Make sure you get a Buy to Let mortgage. Too many are now getting caught from failing to get permission from their mortgage lender to rent out and now have a "Fraud" warning marker on their credit records with National Hunter (which was set up by the banks to find and mark, the fraudsters and warn other lenders).

Plus if you don't have permission to let the property from the mortgage lender, be aware that any insurance claim may be invalid, even if you have bought landlords insurance. We all know how insurers like to get out of paying out on a claim. This warning is on The Association of Letting Agents website:-


"Consent. It is essential that you advise and obtain consent to let your property from your mortgage lender, existing insurer and head lessee (for leasehold properties). Failure to obtain written consent from these parties may render your insurance void in the event of a claim. Sadly there have been many instances where buildings claims have been totally rejected because the insurer and or mortgage lender was not advised the property was let."
http://www.arla.co.uk/information/in...ngs-insurance/

Why buy now when all the indicators seem to show that the market is going to be dropping? Mortgage rates are already rising due to the cost of borrowing and the lenders commitment to the repayment terms of the bailouts they received; welfare payments are dropping or being removed; new conditions for those who thought they could claim/continue to get, welfare; 40% of rents are paid by welfare and the government have lowered these payments permanently. There have already been big changes for those who want help with their mortgage and warnings of much bigger changes to come for these claimants.

I assume you know about

http://www.rightmove.co.uk

Just from personal experience think carefully bout buying a place you think you will want to live in and then letting it out to others and returning there.
You may want to consider buying somewhere that is easy to let then when you return move in for a while and then look at getting a place to live in for the long term.
Try and pick letting agents that come with a personal recommendation, there are some pretty sloppy ones out there!!
Our little place has been wrecked by tenants so not really the home we thought it would be, but we are trying to get it that way.

Considering house prices are unlikely to rise during the period you are looking at, the great possibility you'll decide to settle somewhere else, the hassle of property purchase and management, and the fact you'll likely make a net loss every year, if I were you I'd just wait until you come home before you buy a house.

Really, it's just not worth it - what will you do when a nieghbour calls to tell you the tenants have trashed the place, the rent is 4 months overdue, and the rental agency is staffed by kids without the initiative to tie their own shoelaces? You can't just put your Superman cape on, fly over here and sort it out in a day.

Too much heartache.

Have I made my point yet?

Wow, thanks for all your thoughts and advice. Lots to think about.

Are your experiences from having left your property to let when you left UK, or did you do what I'm thinking of doing?

Yes.

Particularly in the current market I'd say in bold, capital letters "DON'T DO IT"

Is this really true? It is a no brainer that if the mortgage company finds out that the property is let without permission there could be trouble. But I haven't found anything to say that an insurance claim would be declined because the mortgage company was not told about the letting. Not if the correct landlord insurance is in place that is.

Yes I am an independent mortgage adviser. Please email me if you need any advice to [email protected] My web address is www.abodemortgageandfinance.co.uk

I can provide all advise and paperwork by phone, email etc......

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