Permanently live abroad

One of the main considerations is weather. Weather also effects the rental season in more ways than one. When it snows in UK people reach for the mouse to find a holiday abroad.

Location	days rain	average monthly temperatures	rental season weeks	average rent 2 bed appt	average rent 4 bed villa with pool
Carribean
Mainland Spain
Canaries
Bulgaria
France

You can research all of these yourself.

If you intend to move abroad permanently: I would personally keep my UK home untill I was sure that where I picked was right for me and my family. Every year the house will increase in value giving you more equity should the need arrise and the rental income can only increase. You have 3 years of renting it out before the inland revenue will make you pay capital gains tax on the sale. If you do want to sell after 3 years the tax you would have to pay can be reduced by coming back to live for a year.

In the case of a home in joint names you are allowed to offset a single and a married persons allowance before you have to pay any tax on the rental income. Once your UK property has been sold moving home becomes much harder. Your home is like cash in the bank. You can remortgage on an interest only basis up to 90% of its value and then rent it out on the long term market.

A little tip: get a management company to value your home for rental.

If you remortgage your home so the repayment is the same as the rental income after the management fees then your uk home is not a chain round your neck. You are moving abroad with your uk home as an asset and no committment in repaying the mortgage as the tennants cover your mortgage. You now have a lump sum that can be used for buying or a large deposit on a new home abroad and the start of a new life. Do not think you are loaded and blow this cash in the first year.

Invest it in property and only buy somewhere that with this cash and a foreign mortgage.

But only buy once you have a secure job abroad that can easily cover your new mortgage. Also remember to keep some back for emergencies. You never know when your UK tennant might leave and it could take months to find another.

IT IS ALWAYS BETTER TO BE SAFE THAN SORRY

Another tip: If ever you do move abroad especially if your move was tommorrow the local banks will have absolutely no history of your credit standing so even though you might have massive equity in your 2nd home they are loath to take a risk in lending more money to you so credit wise you stand alone. If you apply for credit cards abroad you will normally be declined or the limit given is very small, so apply for every credit card under the sun while you are in UK and your credit standing is established. 10 cards with 5k limits gives you a 50000 emergency buffer.

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