Seastoke
Well-known member
Are your lenders happy for you to rent out a house they own.
Do banks run a mile when you put your address as your boat?
- Thread starter Kelpie
- Start date
GHA
Well-known member
Similar with parents address, so much simpler these days with everything done online. Must be the best way if possible. Main use is just somewhere to get occasional bank cards sent, Revolut account simple to set up but still need somewhere to send the card.Since we moved aboard in 1998, we have used my Brother in Laws address. Bit of a pain the 4 times hes moved since then!
But he has been very good at binnin spam mail for us.
Kelpie
Well-known member
This is a conversation we will have to have with them. And I expect them to ask us where we are going to live, hence this thread.
Obviously in principle banks will lend on properties that are rented out, otherwise buy-to-let mortgages would not exist.
It does seem much harder to find a loan for a house used for holiday letting, which is a bit frustrating given it is, for us anyway, a much higher level of income, and is going to be essential if we are going to be able to finance our bluewater plans.
Seastoke
Well-known member
You might find they want to charge more interest, also finding insurance could be challenging but good luck and the more you post it helps more people.
sailaboutvic
Well-known member
There are many who rent out there homes to finance their trip Insurance isn't normally a problem , you need two type landlord and a building insurance combine in one most can be obtained.
Over the last few years a lot of law have change regarding landlords and unless your planning to let an agent do the work for you , you should really study up n the new rules ,
PlanB
Well-known member
As others have said you need to consider:
Advising your lender - a 1% increase in rate and conditions re tenancy agreement are the norm.
Advise your insurers - they may require a different policy
Consider the laws re letting - proper tenancy agreement, deposit protection, various H&S regs.
As you are going to be away, highly recommend you use a reputable letting agency to let and manage.
UK address for correspondence and to ensure you are able to retain UK resident staus for medical, banks, tax etc
Advising your lender - a 1% increase in rate and conditions re tenancy agreement are the norm.
Advise your insurers - they may require a different policy
Consider the laws re letting - proper tenancy agreement, deposit protection, various H&S regs.
As you are going to be away, highly recommend you use a reputable letting agency to let and manage.
UK address for correspondence and to ensure you are able to retain UK resident staus for medical, banks, tax etc
Kelpie
Well-known member
Thanks for the tips, we have been looking into the rules around tenancies although our main focus is on holiday letting- I spent three years building a cottage that we now run as a holiday let, so we're reasonably clued up on that front. Unfortunately it seems very hard to obtain a mortgage on a holiday let.
FlyingGoose
Well-known member
Can you not get a buy to let mortgage on the holiday home, the basnk does not need to see renter income just that you can afford it ,
As said above any letting property long term will require landlord insurance , for buildings and content if you wish,
The Banks may want you to move your mortgage on the main house to a buy to let with different rates , but this may depend on the loan amount against the equity in the house .
Again as said above , essential to keep a home address some were for if you come back into he country ,
Best maybe go and talk it over with a bank adviser and see if they can look at options for you
As said above any letting property long term will require landlord insurance , for buildings and content if you wish,
The Banks may want you to move your mortgage on the main house to a buy to let with different rates , but this may depend on the loan amount against the equity in the house .
Again as said above , essential to keep a home address some were for if you come back into he country ,
Best maybe go and talk it over with a bank adviser and see if they can look at options for you
Kelpie
Well-known member
The bank seems to want to see a short assured tenancy agreement, so it would be quite hard to get around that if doing short holiday lets.
Obviously we will be taking out appropriate insurance, necessary for a mortgaged property anyway, and we already do this for our existing holiday let.
The rates and fees on specialist mortgages do make you want to cry. I suppose it's a bit like yachty stuff... smaller market, higher prices....
Refueler
Well-known member
I can say from personal experience that Banks do NOT like any change to residential status of any kind !!
All the time I had my UK wife on accounts ... her name still on when divorced ... the banks had someone to grab if anything went wrong. She living in UK etc.
Once I informed one bank that I was now living in Latvia, repeated I was divorced and removed ex wifes name from account but had address in UK - they were very difficult and it did not take long before they were pressing about my credit balance. I was paying every month and balance was reducing slowly ... but no - that was not good enough. Eventually I got so sick of them - I paid of most of the credit balance ... WHAM they cancelled the card and demanded the outstanding. No matter I had been with that bank for nigh 40 years without any problems.
Another UK bank I have account - I didn't make same mistake and still have credit card UK based ... but boy - I have to be so careful what I say to them ...
Another account is offshore UK and to be honest - given the neanderthal style of UK mainland banks - I do most through that now. I can make international transfers in currency of choice without need for Fax Indemnity or other crap that UK mainland banks insisted on. They accept that I live in Latvia and no longer maintain UK property having sold it all off. Agreed Overdraft on accounts which UK mainland refused.
I was told that not living in a property and maintaining presence in UK was a serious factor for a UK mainland bank and that is why overdrafts were recalled, credit cards cancelled etc. for me.
If I was to go 'live-aboard' - I would most likely look at Transferwise or some other international based system ... but of course mortgages / credits have to sorted which affect how you do it.
UK mainland banks - I hate them with a vengeance ... but not as much as HSBC !! That is the Devils creation.
All the time I had my UK wife on accounts ... her name still on when divorced ... the banks had someone to grab if anything went wrong. She living in UK etc.
Once I informed one bank that I was now living in Latvia, repeated I was divorced and removed ex wifes name from account but had address in UK - they were very difficult and it did not take long before they were pressing about my credit balance. I was paying every month and balance was reducing slowly ... but no - that was not good enough. Eventually I got so sick of them - I paid of most of the credit balance ... WHAM they cancelled the card and demanded the outstanding. No matter I had been with that bank for nigh 40 years without any problems.
Another UK bank I have account - I didn't make same mistake and still have credit card UK based ... but boy - I have to be so careful what I say to them ...
Another account is offshore UK and to be honest - given the neanderthal style of UK mainland banks - I do most through that now. I can make international transfers in currency of choice without need for Fax Indemnity or other crap that UK mainland banks insisted on. They accept that I live in Latvia and no longer maintain UK property having sold it all off. Agreed Overdraft on accounts which UK mainland refused.
I was told that not living in a property and maintaining presence in UK was a serious factor for a UK mainland bank and that is why overdrafts were recalled, credit cards cancelled etc. for me.
If I was to go 'live-aboard' - I would most likely look at Transferwise or some other international based system ... but of course mortgages / credits have to sorted which affect how you do it.
UK mainland banks - I hate them with a vengeance ... but not as much as HSBC !! That is the Devils creation.
RAI
Well-known member
I have had my Barclaycard withdrawn, by the bank, because after 30 years of living abroad they decided that, as an expat living in Belgium, was a Brexit risk too far.
NatWest Offshore is being kind to me, but if I want to change the type of account I have with them, they require notarised proof of who I am.
NatWest Offshore is being kind to me, but if I want to change the type of account I have with them, they require notarised proof of who I am.
nortada
Well-known member
I guard jealously my 'presence in the UK'.
PlanB
Well-known member
Ditto - there are so many complications if you don't hold on to it.
FlyingGoose
Well-known member
I am planning like Kelpie to head off , me in a few years , I will keep an address in the UK , but this is no Judgement , but is it technically legal to do so , either way I will be doing it , but I also have to cancel a load of benefits I get once I leave the UK. then The EU , does any one get benefits legally ,I know that certain countries have cooperation to the UK , but what about a Yacht in transit say across the Atlantic to a country that offers the same benefits ,
I know Barbados has a agreement with the UK for certain benefits ,
So if I left the Canaries , with some benefits intake due to the EU , would I need them to stop on the voyage , then reclaim them ,
Its like a tongue twister this one
For the record I will comply with all rules for all benefits I receive , I am asking if any one is in the same situation or knows something about it
ME / PIP / contribution ESA (contribution ESA is until I reach retirement age . as I have 30 years of NI payments , non contribution ESA Is for one year only )
Daughter/ DLA
nortada
Well-known member
Apart from the state pension (which I am informed is an entitlement, not a benefit) I get no benefits.
Understand you should still get the State Pension wherever you are but may no longer annual increments?
Not in your position, nevertheless, I do not understand your reasoning.
Just because you plan to leave the UK for a few years, unless you are emigrating (i.e. burning your boats and striving to become a Non-dom) you are very likely to remain an ordinary resident and so qualify for all of your benefits, including continuing to being covered by the NHS, when in the UK.
Depending on the Brexit settlement, you may also retain UK EHIC cover, when in the EU.
This why so many travellers retain an interest in the UK.
This might be useful:- Assessing ordinary residence: nationality policy guidance.
sailaboutvic
Well-known member
PlanB
Well-known member
This would be a good starting point for your research on benefits. Claiming benefits if you live, move or travel abroad
In my view, keeping a UK address and continuing with these benefits puts you in a different position from just receiving a pension. And don't forget the periodic face to face assessments.
In my view, keeping a UK address and continuing with these benefits puts you in a different position from just receiving a pension. And don't forget the periodic face to face assessments.
Graham376
Well-known member
Not sure if I'm understanding this properly but, what kind of benefits? I hope as a tax payer, we aren't paying benefits to support someone's boat and long distance holidays.
FlyingGoose
Well-known member
Certain benefits are transported around the EU and some countries that have reciprocal measures in place , ( Just like UK Pensions)
Many vary depending on which benefits you get , and can be payed into a UK bank account if you follow certain rules
I stated in the post that I would obey any rules , but I get a number of benefits , child tax credit, enhanced child tax credits as my daughter is disabled . and she also gets Enhanced DLA I get PIP , and contribution ESA . As stated before I have paid 30 years of NI before I became ill, therefore entitle to this until I Reach retirement age .
My next appointment is not until 2022 for a re assessment as my condition is none curable , I normally get 5 years between assessments
I was asking if others were in the EU or other places getting benefits , but I Suspect most are at retirement age (worth an ask)
One does not apply for money and gets it , it is an intrusive assessment , and the Government make the decision .
I do not expect to get my benefits while globe trotting ,but some are transported if I stay in the EU, and some can be picked up from countries like Australia
Disabled people can sail and do sail , but getting work. staying employed and even getting an interview is not worth the hassle of the negative and down right blatant breach of the law.
I have been examined by 2 different health workers my GP and my neurologist who have told the Government I am not fit to work , it is never easy and I have though about going back , for my mental health , but it might just kill me early , so stuck with the benefits ,
Also some of my benefits are taxable so contribute to the duel income with my Partner , and I have paid my taxes and NI since I was 16, so thankfully we have a Government that looks after those in need when the poo poo hits the fan
Thanks Plan B that was a useful link
Many vary depending on which benefits you get , and can be payed into a UK bank account if you follow certain rules
I stated in the post that I would obey any rules , but I get a number of benefits , child tax credit, enhanced child tax credits as my daughter is disabled . and she also gets Enhanced DLA I get PIP , and contribution ESA . As stated before I have paid 30 years of NI before I became ill, therefore entitle to this until I Reach retirement age .
My next appointment is not until 2022 for a re assessment as my condition is none curable , I normally get 5 years between assessments
I was asking if others were in the EU or other places getting benefits , but I Suspect most are at retirement age (worth an ask)
One does not apply for money and gets it , it is an intrusive assessment , and the Government make the decision .
I do not expect to get my benefits while globe trotting ,but some are transported if I stay in the EU, and some can be picked up from countries like Australia
Disabled people can sail and do sail , but getting work. staying employed and even getting an interview is not worth the hassle of the negative and down right blatant breach of the law.
I have been examined by 2 different health workers my GP and my neurologist who have told the Government I am not fit to work , it is never easy and I have though about going back , for my mental health , but it might just kill me early , so stuck with the benefits ,
Also some of my benefits are taxable so contribute to the duel income with my Partner , and I have paid my taxes and NI since I was 16, so thankfully we have a Government that looks after those in need when the poo poo hits the fan
Thanks Plan B that was a useful link