I’m Emigrating, Should I Sell My Property?

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Moving abroad is hugely exciting. You could be retiring, relocating for work or simply in need of a change. But there are a lot of loose ends to tie up before you can concentrate on the fun side of living in another country. And deciding what to do with your property is something you can’t take lightly.

This page will give you all the information you need to decide what to do, and if you do decide to sell, how we might be able to help.

In this article:

Should you sell or rent your house when moving abroad?

One of the first decisions you’ll have to ask yourself is whether to sell up or rent out your home. There are pros and cons to both routes, which you will find below. Consider your options and think about any pros and cons that may be personal to you.

Pros and Cons of selling up and moving abroad

Pros

  • You’ll receive a big cash injection to start your new adventure
  • It gives you a completely fresh start, free of property commitments

Cons

  • You won’t have a house to come back to if things don’t work out abroad

Pros and cons of keeping renting out your house when moving abroad

Pros

  • You’ll receive a healthy income from renters
  • The property is a failsafe if you need to come home

Cons

  • It can be costly to hire firms to manage your property
  • You’ll have more taxes to pay, including capital gains tax

What happens to my mortgage if I move abroad?

If you’re planning on keeping your property for yourself, the good news is absolutely nothing will change. We’d recommend you keep your UK current account open to ensure things remain nice and simple. Other than that, all you need to do is keep up with the monthly mortgage payments. Plus, that way you’ll be able to keep your UK credit score nice and healthy too.

If you do decide to rent your home out however, you must let your mortgage lender know. They’ll then convert you to a Buy to Let mortgage. This type of mortgage can often have higher interest rates and fees, due to tenant turnover and potential vacant periods. Make sure you discuss the implications and risks with your lender fully before you make your decision.

Tax Implications

If you rent out your property, you’ll have to pay tax on the income you get from your tenants’ rent payments. If you’re eligible for a personal income, you’ll pay 20% on anything over £11,500. If you’re not, you pay tax on your entire income from renting out your property.

How do I know if I’m eligible for a personal allowance?

You get a personal allowance if you’re a citizen of an EEA country, hold a British passport, or have worked for the UK government at any time during that tax year.

If you’re not a UK resident you may be able to visit the government website to fill in a form and claim the Personal Allowance.

You could also get the allowance if your country of residence is included in the double-taxation agreement.

What’s the double taxation agreement?

In some cases, you may be taxed on your rental income by both the UK and your country of residence.

There are a number of countries that are in the ‘double taxation agreement’. If your country of residence is part of the agreement, you may be entitled to a tax refund after you’ve been taxed, or full or partial relief before being taxed.

If the tax rate differs to the UK, you’ll pay whichever is highest. Learn more right here.

The Capital Gains Tax

This is a tax paid if you make a profit on UK property once you’ve left the UK. Again, this is subject to the ‘double taxation agreement’ and you may be entitled to relief or a refund.

You can find out more about it on the Government’s website here.

If you do decide to sell your home before you move abroad, a quick sale could be a high priority. That’s where Good Move can help. We’ll make you an offer of up to 80% of the value of your house and there won’t be any hidden fees like agent or solicitor charges to consider.

The major benefit of a quick house sale is speed. The profits from your house sale could be in your bank account in just seven days and you won’t have to deal with house viewings, house chains or long, drawn-out sales. Get in touch with our team of qualified surveyors to find out more.

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