Buy to let properties while moving overseas for work?

by Readers Question

16:45 PM, 7th March 2017
About 2 years ago

Buy to let properties while moving overseas for work?

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Buy to let properties while moving overseas for work?

I have 2 buy to let properties on mortgage. I am getting an overseas assignment later this year to India for 2 years.Taj

I was planning to expand my portfolio but thinking what happens if I move overseas.

Is it better to buy through company or shall I continue to buy along with my wife as she is not working. Not sure if lenders will cause problems.

Appreciate if anyone can provide valuable inputs to this case.

Mohit



Comments

Neil Patterson

16:53 PM, 7th March 2017
About 2 years ago

Hi Mohit,

You have 2 massive questions here with little information to go on. At some point you will need a full professional fact find done, but in the mean time.

Normally you would consider going the Ltd co. route if you are anywhere near paying high rate tax once you have split the rental income between you.

You need to start by reading our tax tutorials first. please see >> https://www.property118.com/tax/

You then need to speak with a commercial finance broker to go through a fact find and consider how finance might work while you are an expat. When you need help with this email me on npatterson@property118,com

John Constant

9:27 AM, 11th March 2017
About 2 years ago

Mohit,
who do you work for? If it is a large multi-national company, and are a reasonable earner, then there is a good chance that you will be able to secure an ExPat mortgage if you wanted to buy in your own personal name. Neither do I see any major problems if your wife wanted to buy in her own name, utilising her tax allowance, if she will be remaining in the UK. However, I presume that she will accompany you overseas, in which case, a joint ExPat mortgage option still applies.
The Ltd Co option situation is less clear in my mind. Whilst it might suit you, taxation wise, you should ask your finance broker to mention this specific point when they are sourcing a mortgage for you. Although the Ltd Co will be located in the UK, they may not be willing to lend if you, as the guarantor on the loan, are located abroad.

If you would like to investigate this further, contact Neil, as mentioned above or contact me via my member profile

H B

12:04 PM, 12th March 2017
About 2 years ago

Worth reading the HMRC guidance :

https://www.gov.uk/tax-uk-income-live-abroad/rent

Mohit Gaur

8:46 AM, 13th March 2017
About 2 years ago

Reply to the comment left by "John Constant" at "11/03/2017 - 09:27":

I work for a global bank. My wife does not work so I shall not take limited company route for now. And my wife will also be coming with me for overseas assignment.

Mohit Gaur

8:47 AM, 13th March 2017
About 2 years ago

Reply to the comment left by "H B" at "12/03/2017 - 12:04":

Thanks H B. Getting bit of a clarity.


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