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Selling your UK home to move to Spain?

Selling your UK home to move to Spain?

Old May 7th 2006, 9:10 am
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Default Selling your UK home to move to Spain?

OK, my house went up for sale at the end of March. I had 6 estate agents round to value the place to make sure I got the price right. Four of them picked the same figure.

Since putting the house on the market we have had three viewings with no subsequent interest and the agent rang yesterday to ask if I might consider dropping the price by £25k. My answer to that was that if 4 estate agents had misvalued the house then there was something wrong, so he decided to leave it for another three weeks.

The house is a nice 4 bed detatched in good nick and nothing to put buyers off.

So how many more of you are in this position? I ask because I'm now in a quandry. I don't know if we aren't getting people round to view because the price is too high, or just because despite the estate agents hype, the market is dead.
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Old May 7th 2006, 9:31 am
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Default Re: Selling your UK home to move to Spain?

Originally Posted by Mitzyboy
OK, my house went up for sale at the end of March. I had 6 estate agents round to value the place to make sure I got the price right. Four of them picked the same figure.

Since putting the house on the market we have had three viewings with no subsequent interest and the agent rang yesterday to ask if I might consider dropping the price by £25k. My answer to that was that if 4 estate agents had misvalued the house then there was something wrong, so he decided to leave it for another three weeks.

The house is a nice 4 bed detatched in good nick and nothing to put buyers off.

So how many more of you are in this position? I ask because I'm now in a quandry. I don't know if we aren't getting people round to view because the price is too high, or just because despite the estate agents hype, the market is dead.
It may be a bit of both. Unfortunately it is a buyers market at present. You should worry more if you had no viewings at all. I suggest that you sit tight and someone will eventually come along and offer you what you want, or thereabouts.

Have you considered keeping it and using the rental to give you an income in Spain, that is what we intend to do?
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Old May 7th 2006, 9:32 am
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Default Re: Selling your UK home to move to Spain?

Originally Posted by Mitzyboy
OK, my house went up for sale at the end of March. I had 6 estate agents round to value the place to make sure I got the price right. Four of them picked the same figure.

Since putting the house on the market we have had three viewings with no subsequent interest and the agent rang yesterday to ask if I might consider dropping the price by £25k. My answer to that was that if 4 estate agents had misvalued the house then there was something wrong, so he decided to leave it for another three weeks.

The house is a nice 4 bed detatched in good nick and nothing to put buyers off.

So how many more of you are in this position? I ask because I'm now in a quandry. I don't know if we aren't getting people round to view because the price is too high, or just because despite the estate agents hype, the market is dead.
Hi i suppose it depends on what area you are in. My mother put her house up for sale Friday and recieved two offers on Saturday.Good luck where are you moving to in Spain?
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Old May 7th 2006, 10:14 am
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Default Re: Selling your UK home to move to Spain?

Heh heh .... both not very encouraging posts, but thanks anyway :-)

Gray C - Problem with renting it is that Spanish wealth & Income taxes on top of management charges & maintenance make it almost not worthwhile. I reckon without maintenance I would get £9600 in revenue and pay out £5335 in Spanish Tax & management charges giving me only £4200 pa. I should check your figures carefully before committing to rental as I don't think the figures stack up unless you're in an area where you can charge a really high rent.

Chirivel - I have a a place in Oliva about 70 kms South of Valencia.
Tell your mother she is very lucky . Which area is she in, South or North
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Old May 7th 2006, 10:27 am
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Default Re: Selling your UK home to move to Spain?

Originally Posted by Mitzyboy
Heh heh .... both not very encouraging posts, but thanks anyway :-)

Gray C - Problem with renting it is that Spanish wealth & Income taxes on top of management charges & maintenance make it almost not worthwhile. I reckon without maintenance I would get £9600 in revenue and pay out £5335 in Spanish Tax & management charges giving me only £4200 pa. I should check your figures carefully before committing to rental as I don't think the figures stack up unless you're in an area where you can charge a really high rent.

Chirivel - I have a a place in Oliva about 70 kms South of Valencia.
Tell your mother she is very lucky . Which area is she in, South or North
As we do not live in Spain and I am not that knowledgeable on Spanish taxation it may be a daft question to ask, but why would you pay Spanish management charges on renting your UK property, or is it the way I am reading it and you mean management charges in the UK. Sunday morning and maybe a bit thick (too much wine) headed today

Not that I would condone "bending the system", but how likely is it that the Spanish authorities would pick up on your UK earned rental income?
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Old May 7th 2006, 11:34 am
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Default Re: Selling your UK home to move to Spain?

Originally Posted by Gray C
As we do not live in Spain and I am not that knowledgeable on Spanish taxation it may be a daft question to ask, but why would you pay Spanish management charges on renting your UK property, or is it the way I am reading it and you mean management charges in the UK. Sunday morning and maybe a bit thick (too much wine) headed today

Not that I would condone "bending the system", but how likely is it that the Spanish authorities would pick up on your UK earned rental income?
No ... UK management charges .... to a management company around here are around £200 per month for the full monty.

As to whether the authorities in Spain would pick up on it, who knows. They are supposed to be clamping down on expats and there is a reciprocal tax arrangement with UK / Spain. Its a risk I guess. Conversely, how many people declare their Spanish rental income to the UK Tax man. Do the rental web sites send in lists of their renters to the revenue? How would the tax man find out? Interesting questions
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Old May 7th 2006, 12:26 pm
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Default Re: Selling your UK home to move to Spain?

Just one point (I'm sure you know) is that UK rental income is and has to be declared to the IR and tax paid in the UK no matter where you live. I rent a UK property out, privately with no management company so no fees, having had a very bad experience with the first management company I had the misfortune to choose. I am lucky I guess in that I have a perfect tenant.
I am however thinking of putting my property on the market this year to avoid the seller's pack hassle from 2007. I intend to price it low (or possible auction it) to achieve a quick sale as I don't want it sitting empty for anything more than a few weeks if at all possible.
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Old May 7th 2006, 12:33 pm
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Default Re: Selling your UK home to move to Spain?

Originally Posted by Hillybilly
Just one point (I'm sure you know) is that UK rental income is and has to be declared to the IR and tax paid in the UK no matter where you live. I rent a UK property out, privately with no management company so no fees, having had a very bad experience with the first management company I had the misfortune to choose. I am lucky I guess in that I have a perfect tenant.
I am however thinking of putting my property on the market this year to avoid the seller's pack hassle from 2007. I intend to price it low (or possible auction it) to achieve a quick sale as I don't want it sitting empty for anything more than a few weeks if at all possible.
If you live abroad and rent a UK property the management company is legally bound to withold monies from you on behalf of the inland revenue to cover taxes.

Do auction values tend to be lower than if you sell through "normal" channels?
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Old May 7th 2006, 12:36 pm
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Default Re: Selling your UK home to move to Spain?

Originally Posted by Mitzyboy
If you live abroad and rent a UK property the management company is legally bound to withold monies from you on behalf of the inland revenue to cover taxes.

Do auction values tend to be lower than if you sell through "normal" channels?

Auction values can often be a lot higher, especially if you have an "in demand" type property, such as with moorings on a canal etc etc
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Old May 7th 2006, 2:15 pm
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Default Re: Selling your UK home to move to Spain?

Originally Posted by Mitzyboy
If you live abroad and rent a UK property the management company is legally bound to withold monies from you on behalf of the inland revenue to cover taxes.
Not if you are accepted as a non resident landlord under the non resident landlord's scheme. Then you receive your rent gross and are reponsible for paying the tax yourself. I didn't fancy relying on my tenant (depsite her being perfect in every other way!) to pay my tax for me and then having to reclaim it anyway. Rather have the money in my account earning interest!
More info here:
http://www.hmrc.gov.uk/cnr/nr_landlords.htm
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Old May 7th 2006, 10:10 pm
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Default Re: Selling your UK home to move to Spain?

Don't want to depress you further Mitzyboy , but,Our estate agent here in Droitwich got our house featured as the "house of the week" in the local paper, big feature article, pics, the works, so far we have had zero visits, and only 8 since going on the market in October, we are not a million miles from you and I believe its just a slow market here in the Midlands, was told buy a customer in Taunton that property is selling well in the south west, so hope it moves up north.
With regards to reducing price, NO WAY, we have a 3 bed nice house with garage in a decent area of Droitwich, if we reduce the price there is no guarantees that the viewings will increase, and what then if someone does view and puts in an offer, do you accept or say well no its a good price so I'm not shifting and risk loosing the sale. We will hold out at the price set by 2 agents as realistic, and then negotiate when we get an offer, just want that offer NOW
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Old May 8th 2006, 12:00 am
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Default Re: Selling your UK home to move to Spain?

I live in a very pleasant part of Kent and "SOLD" signs are springing up all over the place - realistically priced properties attract buyers. Those vendors who stick at inflated prices in comparison to similar properties in the same area are wondering why their houses are not selling - it isn't rocket science.

Personally, I think the UK house market is about 30% over-valued and perhaps the introduction of HIPs in June 2007 will bring back some sanity to the whole process of buying and selling bricks and mortar.
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Old May 8th 2006, 9:07 pm
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Default Re: Selling your UK home to move to Spain?

Originally Posted by Inquieto
I live in a very pleasant part of Kent and "SOLD" signs are springing up all over the place - realistically priced properties attract buyers. Those vendors who stick at inflated prices in comparison to similar properties in the same area are wondering why their houses are not selling - it isn't rocket science.

Personally, I think the UK house market is about 30% over-valued and perhaps the introduction of HIPs in June 2007 will bring back some sanity to the whole process of buying and selling bricks and mortar.
So how would you value a house, my understanding is that you contact someone who specialises in this area, lets call them "estate agent", they then work out a realistic price based on the sale prices of locally sold similar property and thus you have a value, In both my case and I believe Mitziboys case, we got valuations from a number of these specialists, and so put our property on the market at the recommended market price. Not a figure pulled out of thin air and certainly not 30 % higher than the market would suggest. As you say its not rocket science.
Personally I think our house is accurately priced for the type of house and the area, similar property in the same road sold for our asking price this time last year.
Have to disagree with you thoughts on the HIPs, Only a mad man would purchase goods, in excess of £100,000 and believe everything the seller is saying, Ebay comes to mind. the whole concept is open to abuse. The government have admitted they are going to struggle to have everything in place in time for the launch. Plus I have already paid for a full survey when I bought my house so why should I pay again, no sorry if someone is that interested in purchasing a house then they should put money where their mouth is, however, I would agree that the system is not perfect and should be rehashed but not to the extent of the house owner being charged around £1000 for the pleasure of putting the property on the market. I know the figure given by the government is around 6 to 7 hundred but we all know what government figures are like and according to a number of surveyors they believe the end figure will be closer to one thousand pounds.
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Old May 8th 2006, 9:17 pm
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Default Re: Selling your UK home to move to Spain?

Originally Posted by kevray
So how would you value a house, my understanding is that you contact someone who specialises in this area, lets call them "estate agent", they then work out a realistic price based on the sale prices of locally sold similar property and thus you have a value, In both my case and I believe Mitziboys case, we got valuations from a number of these specialists, and so put our property on the market at the recommended market price. Not a figure pulled out of thin air and certainly not 30 % higher than the market would suggest. As you say its not rocket science.
Personally I think our house is accurately priced for the type of house and the area, similar property in the same road sold for our asking price this time last year.
Have to disagree with you thoughts on the HIPs, Only a mad man would purchase goods, in excess of £100,000 and believe everything the seller is saying, Ebay comes to mind. the whole concept is open to abuse. The government have admitted they are going to struggle to have everything in place in time for the launch. Plus I have already paid for a full survey when I bought my house so why should I pay again, no sorry if someone is that interested in purchasing a house then they should put money where their mouth is, however, I would agree that the system is not perfect and should be rehashed but not to the extent of the house owner being charged around £1000 for the pleasure of putting the property on the market. I know the figure given by the government is around 6 to 7 hundred but we all know what government figures are like and according to a number of surveyors they believe the end figure will be closer to one thousand pounds.
IN the likely event of being called dumb.....what is this HIP? or sellers pack i keep reading about?
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Old May 8th 2006, 10:35 pm
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Default Re: Selling your UK home to move to Spain?

Originally Posted by unevano
IN the likely event of being called dumb.....what is this HIP? or sellers pack i keep reading about?
The HIP is a "Home Information Pack" which is put together with info supplied by the seller, a HIP surveyor, and Solicitor, it contains info such as environment issues, neighbour feuds, energy costs in running the house etc. the surveyors are specially trained for the job, IE have had a crash course on how a house should be built. The fact that you may not get on with the annoying guy next door is taken into account, you must say that you have had disagreements with the neighbours, a great selling point. Especially when the chances are the next owner will probably get on great with them.
All this has to be put together by a solicitor and you pay for it when you decide to sell the house. The 600 to 1000 pounds. The fact that you "forgot" to mention that there is a gas leak in the basement, is to all purposes irrelevant. and the idea that having purchased said property you can now sue the previous owner is a joke. Had you paid for your own unbiased fully qualified surveyor, these details would have been found and sorted before you exchanged contracts.
try this or do a search on Google
http://www.docucorp.com/hip/
Have a chat with your local independent chartered surveyor, he will explain it all, and if he is like my local guy will tell you that its a complete joke and on the present info available it will be unworkable.
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