I am considering (potentially temporarily) leaving the UK.
Selling or renting decision in the UK has some specifics: potential drop in property prices after Brexit potentially offset by unavailability of credit, currency fluctuations depending on Brexit negotiations,
tax development on the BTL front ,
local council renting schemes etc. etc.
Market Value: ~£290k (I had 3 separate valuations done in the last 6 months and they varied between £270-330k, the worst one being the last one (closest to Brexit) which also suggested that there aren't that many buyers around atm)
Original Purchase price: £197k
Original Mortgage Amount: £150k
Interest Rate: 3.54%
Mortgage Term: 5 year fixed
Term remaining: 1 year, allowing me to remortgage with the same supplier 4 months beforehand
Amount remaining on mortgage: £102k
Gross Rents: £900-£1,300, mine being around £1100-1150 mark since it has a garden, was recently renovated and I can add in the garage which currently nets £70/week
Principal and Interest: P of mortgage ~£530, I of mortgage ~£300
Taxes and Insurance: Lettings insurance approx £40/month
One off cost of agreeing with the mortgage provider for the property to be let: £275
Croydon council letting scheme (up to once every 5 years): £750
HOA costs: Buildings insurance is covered in £120/month
Deferred maintenance notes: Recently renovated property, need to fit additional fire & carbon monoxide alarms, but otherwise no real new requirements due to fire regulations (I don't think)
I am considering the two options because
1) I'm not sure if my move is permanent and I like the property that I own and would prefer to move back if needed BUT if I do sell it, I could put £40k of the proceeds in an ISA (therefore protecting it from any tax forever),
2) there are some tax benefits if I keep the property (e.g. I would benefit from 20% tax credit on mortgage interest long term allowing me to consider extending the mortgage term),
3) it might help me retain permanent residency if it becomes a problem after 2 years and
4) I will be able to make use of the full personal allowance (£11,850 of income you don't pay any tax on, this does not include NI): I do have a limited company in the UK giving me some income (but not £11k); if I have this property in the UK as well, I can make use of all of it (which is connected to extending the mortgage term as it gives me more disposable income due to lower mortgage payment); the EU country in question has higher taxes and they do not have personal allowance which means I'd otherwise only be able to use personal allowance for the income from the limited company.