Tootsie Frickensprinkles

Have you got a management contract sorted yet? You'll also need safety certs done and marketing stuff ... If the house is new dont worry about the certs .. if 20 years old + I'd get them done asap just incase you need work done on electrics or boiler. If you're planning on leaving anything in the house at all you will need an inventory and statement of condition produced, any good agency will have contatcs for you.

I'd advise getting the agencies in now and have them gtg when you're sorted with the mortgage. Rental market definitely picks up come April. Given your timescales I don't think trying to sort this out via the back door is advisable at all. Be up front and go with whatever is going to cost you less, you will be able to rent, its just finding the cheapest option.

DR's advice on insurance and lenders is spot on, and if you're going rental they are even more likely to ask either way. I had to buy a special policy, it wasn't much more than the normal though.

Big D

You will need a gas safety cert regardless of age - the electricity is worth it just in case but not required. If you leave furniture then it has to meet safety standards (sofas and matresses etc). We used an aged the last couple of times and it was worth it as they collect the rent and pass on so if there were any problems they have some skin in the game, also they do credit checks up front.

You also cant keep the deposit anymore - it has to go into 'trust' and there is a dispute process if you want to claim any of it. There are only about three places you can have it held. I just changed our contracts so that the deposit cant be held against the last rent check as that dilutes your security

Jerseygirl

You will be able to keep your UK bank/building society accounts but obtaining a mortgage unless you are a UK resident is tricky. However if you have any leverage with your bank/bldg society you should be able to pull it off. As far as I am aware if you are not going to live in the property for 6 mths out of every 12 you have to have a buy to let mortgage.

US banks normally charge you for the privilege of you giving them your money. When we opened our account the company my husband was with had a lot of leverage with a bank and the arrangement was that their employees did not pay banking fees as long as you stay in the black. We have lived here for 12 yrs and have never paid charges apart from international wire transfer fees.

Tootsie Frickensprinkles

I didnt mean dont worry as in don't do, I meant don't worry about the rush so much as they are unlikely to cause problems and need work to be done. The deposits issue is reason enough alone to pay for a decent agency. If you dont want to deal with trusts have the agency hold the money but ensure the contract states you have release authority. If you want UK tax free rent to be paid to you, you need to apply for that now too. All the landlords abroad stuff is quite clear on the IR site.

Big D

As long as you have a decent amount of money going in or keep a certain balance you should never have to pay bank fees over here - although you have to work to get it some times!

Big D

Sorry - misread! The deposit thing is a pain in the arse as you have to jump through hoops to get at your money - its not as simple as saying you knackered my carpet therefore I am withholding X quid - so getting a good inventory and condition report along with your contract is vital now....or just buy a house in Scotland to rent out instead......

I understand why they do it to hurt 'slum' landlords but it doesnt make it easy for us good landlords

MsElui

we came over in october and rented the english house out. We used the most reputable rental agency in the area - and they wanted to see a letter from the mortgage company stating they were okay with it being rented out. We actually changed to a interest only buy to let mortgage (found via a broker) - to keep the rental income ahead of the mortgage payments. Also - until we buy a place in the US - the uk house is eligble for a lot of US tax relief on the interest payments (so a larger interest payment = bigger refund) - so we could recover a large portion of that back. Once we buy a place in the US we cant claim that on the uk house anymore - but we figure by then we will understand better if we are going to stay here long term or not and can make a call on keeping or selling the uk property.

We aim to use a portion of the US tax refund to pay a lump sum off the mortgage as it isnt repayment and the capital sum wont be decreasing until we switch it back onto a repayment style loan.

Tootsie Frickensprinkles

Right .. as she was rushed also ... looks like my friend was pushed down the exact same road as DRs brother ... shes referring to it as a landords mortgage and after two years they are going to make her go full BTL.

Doesn't seem to me that Halifix are very landlord friendly.

BritGuyTN

you can actually continue to claim the tax relief when you buy a house in the USA... as long as you are still resident in the usa for tax purposes

Jerseygirl

I don't think she'll be able to claim tax relief on the UK property. As a US resident she can only claim for US property.

BritGuyTN

As usual you have stated your opnion as fact: "As a US resident she can only claim for US property"

really? what basis do you have for this?

If the property overseas is of the type you could claim a mortgage interest tax relief on it if in the USA, then you can claim the deduction

Jerseygirl

Our accountant.

BritGuyTN

Your response infers you have asked the accountant because you have foreign property

If this is correct I suggest firing him since he has given you incorrect advice and cost you dollars

Jerseygirl

That is correct we do own foreign property but we decided against a mortgage so it does not cost us dollars.

BritGuyTN

well thats good then.

did you decide against a mortgage because of the supposed lack of the ability to deduct property taxes/insurance and mortgage interest?