Can I sell my house from abroad?

Moving to live overseas is a fantastic opportunity and brings with it many advantages, but it can make selling a UK property a lot more difficult.

Whether you’re moving abroad from the UK due to work, retirement or just because you want a change of scenery, there’s no doubt it’s a big life-changing event and before going ahead with the move there are a lot of different factors to consider.

Today we will be looking at what you need to know about selling a UK property from abroad, whether to keep your property and rent it out or whether to sell it and move on and whether you will pay capital gains tax if you sell your property to live overseas.

Can you sell your house from abroad?

The good news is that you can sell your property in the UK from abroad! There is no legal reason stopping you from doing so.

If you use an estate or online agent then they can do all of the leg work for you regarding viewings and offers. You don’t even have to come back to the UK to deal with contracts and other legal documents as your solicitor should be able to recommend a trustworthy courier service. It’s also possible for you to give power of attorney to a relative or close friend who can act on your behalf from the UK.

If you're selling from abroad then the main thing you need to have is a team you trust, and what we mean by that is estate agents, solicitors and everyone else involved who are reliable and who you know won't let you down.

Moving abroad checklist

Moving is a stressful process in itself. That’s before you add in the moving to a different country, which just adds more complications to the sale process. It’s important you make a checklist before jumping straight in, so you don’t miss any crucial steps.

Whilst each individual will have different bits they need to organise, the basics of the moving abroad checklist will be the same:

1. Find a moving company to handle the shipping of your possessions.

2. Make sure any subscription services know of your new address.

3. Ensure there’s something in place for your post to be redirected.

4. Sell any possessions you don’t wish to take, whether this is your car, furniture, or gadgets.

5. Look for new home insurance.

6. Collect together all personal records and paperwork.

7. Let your doctors, dentists, opticians etc know you’re leaving their practice.

8. Set up a new bank account in your new country.

9. Get new currency.

This isn’t an extensive list but provides the basics you will need to think about when it comes to moving abroad from the UK.

Should you sell your UK property when living abroad?

Before selling your house and moving abroad, you’ll first want to think about what the best option is and whether it may be a better idea to rent instead of sell.

Both options come with pros and cons and each individual will have different ideas on what they want to do, so it’s a good idea to think about what’s more suitable for you.

Pros and cons of selling when moving abroad:

Pros

• Leaves you with no commitments when you move.

• Gives you a large sum of money to start a new journey.

Cons

• Could take a long time to sell.

• The state of the housing market may be poor, meaning you may not get a great price for your property.

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

Pros

• Able to get some income out of your old property.

• If you move back to the UK, you have a house to move into.

Cons

• You will have to pay taxes on your profits, including Capital Gains Tax.

• You will have to hire a management company or letting agent, leaving you with fees to pay.

• If anything goes wrong, you’re too far away to be able to sort it out.

• You're responsible to fix anything that breaks, meaning further costs.

• Will have to convert your mortgage scheme to a ‘buy-to-let’ scheme.

What you decide to do with your property is completely down to you, but it is a good idea to consider all of your options before committing to one.

Should I sell my inherited property from abroad?

If you have inherited property in the UK but are currently living abroad, deciding whether to sell it can be complicated. As a beneficiary, you may be responsible for taxes on any gains made when selling the property, even if you live abroad. 

In most cases, Capital Gains Tax applies to the profit from selling UK property, and this rule generally holds even if the seller is a non-resident. While Inheritance Tax may already have been settled by the estate, any increase in the property’s value since you inherited it may still be liable for Capital Gains Tax.

But, by selling the inherited property, you will be able to unlock its equity without the hassle of maintaining or renting it from abroad. Selling simply, simplifies your responsibilities as a beneficiary, allowing you to access the proceeds with minimal long-distance complications. 

If you are looking for a quick way to sell your UK property, then look no further! Here at The Property Buying Company, we can help you sell your house in as little as 7 days, all while covering the legal and selling costs for you.

Do UK expats have to pay Capital Gains Tax?

Yes, if you sell a property from abroad as a UK resident, you will have to pay tax in the UK (for the majority of cases). If you are a UK resident, you’re liable for Capital Gains Tax on any gain from selling property abroad – this applies to the disposal of substantial overseas assets, including property.

If the country where the property is located also taxes the gain, you may have to pay tax there as well. However, the UK has agreements in place with many countries to prevent double taxation, allowing you to claim relief for the tax paid abroad.

There are some special rules if your permanent home, or ‘domicile’ is outside the UK. Depending on your situation, you might be eligible for some tax reliefs related to your overseas property – it may be worth checking the Government website, or contacting a tax advisor.

For UK residents who have moved abroad but then return within five years, any gains made during your time abroad may still be liable for UK Capital Gains Tax. If you return to the UK after selling an overseas property, you could be classified as a UK resident again and may need to pay tax on all global income and gains.

And, if you were abroad for less than a full tax year, you’re likely to be considered a UK resident for the entire period. This generally means you’ll owe tax on any foreign income or gains during your time abroad.

Do you have to tell HMRC if you sell your house?

Yes, you need to inform HMRC if you sell your UK home, even if no tax is due. When you sell (or ‘dispose of’) your property, you must notify HMRC within 60 days of transferring ownership, regardless of whether there is any Capital Gains Tax to pay. This 60 day rule applies to both residents and non-residents for UK tax purposes.

Even if there is no Capital Gains Tax to pay, such in cases where the property was your main home and qualifies for Private Residence Relief, you are still obligated to inform HMRC of the sale within the 60 day timeframe.

How do I avoid capital gains tax on foreign property in the UK?

If you’re planning to move abroad but own a house in the UK, understanding Capital Gains Tax can help you manage or potentially avoid this tax. Here are some ways to help reduce your tax liability when selling or renting out UK property as you transition overseas:

If you are looking to sell your UK property before moving abroad, why not consider selling to The Property Buying Company? We are one of the UK’s leading cash house buyers, with over 200 years of combined experience, and 13 years of business experience, helping hundreds of people to sell their homes and relocate abroad, quickly. 

It doesn’t matter if you need to sell by the end of this month, or in 3 months time, we can buy your house directly from you in as little as 7 days. And, the best bit? We will cover all your selling and legal fees, which means the offer we agree with you, is the amount of cash you will receive in your bank.

Should I sell a property before or after I move to live abroad?

You may have decided to sell your house but don’t know whether you should sell it before or after you move abroad. Each of these options will have different strengths and it’s all about deciding which is the best route for you.

What happens to my mortgage when moving abroad?

There are a few different routes you may need to take when it comes to your mortgage when moving abroad.

The first is that you decide to keep your UK property for yourself and use it if and when you visit the UK. In this case, the good news is that nothing will change in regard to your mortgage.

All you will need to do is ensure you keep up with the monthly payments and it may be a good idea to leave your UK current account open to make things a little simpler. This will also keep your UK credit score healthy – a bonus if you think you may want to eventually move back to the UK.

The second route you may decide to go down is to keep your UK property to rent it out to others. In this case, you must let your mortgage lender know and they will have to convert you onto a buy-to-let scheme.

This mortgage type tends to have higher interest rates and fees compared to a ‘normal’ mortgage scheme, further adding to the costs you may need to pay when deciding to keep your UK property when moving abroad from the UK.

The final route you could face is if you decide to sell a UK property before moving abroad. In this case, you will pay off your mortgage and then there’s nothing else to worry about! In this respect, selling a property before moving abroad makes the moving process easier for you.

Costs of moving abroad from UK

Putting aside the price you will pay for your new home, there are a lot of costs involved in moving abroad from UK:

• Legal fees (for both buying a new house and selling your old house, if you choose to sell your UK property)

• Stamp Duty (on your new abroad property)

• Mortgage fees

• Buying flights

• Shipping costs of furniture and other goods

• Bills on your new house (water, electric, heating)

• Council tax (or your new country’s equivalent)

• Service charge (if you buy a house on a development)

• Income tax

• Capital Gains Tax (if you keep your UK property and rent it out)

• Currency conversion fees

The number of costs stacks up quickly, suggesting it may be a good idea to sell your property before moving abroad, as it will give you a chunk of money to be able to buy a new house and start your next adventure, without needing to worry about getting work or money from your pension straight away.

Choosing the right conveyancer

One of the main things to be aware of is that it's even more important that you choose the right solicitors. Before committing to a solicitor you should ensure that they can correspond mostly through email or online to make the whole process as smooth and easy as possible..

You might be surprised but a lot of solicitors are still in the pen & papers era. Some solicitors will only accept hand written or signed documents which could mean the whole process is stretched out in comparison to choosing a solicitor that is based purely online.

This means you don't have to rely on sending post back and forth which from abroad can cause significant delays and even cause a sale to fall through if the buyer becomes frustrated.

Can I get a quick house sale when moving abroad from UK?

If you’re looking at selling your UK property when living abroad, then you will more than likely want a quick sale so that you can start your new adventure.

Take a look at your different ways to sell to help you choose the right sale method:

Why are we the right choice?

Here at The Property Buying Company, we’re able to offer you a quick cash sale, with our average completion time at 2-3 weeks, so you can tick ‘sell house and move abroad’ off your checklist.

We will cover all your fees, including any solicitor’s costs, and we complete in a timescale of your choice. We’re also a genuine cash buyer you can trust, with hundreds of good reviews on Trustpilot, and we’re a member of The Property Ombudsman and The National Association of Property Buyers.

We take the stress and hassle out of moving house. With us, there’s no need to hold multiple viewings and have back and forth conversations with potential buyers. If you’re looking to get a fast sale when moving abroad, why not get a no-obligation cash offer from us?

As cash buyers, The Property Buying Company can buy your property from you, even if you live abroad. We make the wholesale process as easy as it possibly can be, we handle absolutely everything for you.

So, if you are looking at selling your home, give us a call or fill in our online form to receive a no-obligation CASH offer, which we could have in your bank in as little as 7 days…