Dealing with your home and property
Home
If you’re renting your current home this is relatively simple issue to resolve, ensure that you give proper notice, arrange secure storage for your possessions and have a plan of where you are going to stay on your return.
If you own your property then you have a number of options to consider depending on the length of your career break and other lifestyle changes you may be looking to make.
Selling your home
In selling your home, and even some of you possessions, you can relieve some of the worries you may have whilst overseas. This is very much a personal choice and may not be appropriate if you’re only taking a relatively short trip. Remember you will need to ensure that the sale can go through prior to you leaving, alternatively granting Power of Attorney (via a solicitor) to a trusted friend or family member means that they can deal with this on your behalf, but this may still leave you feeling anxious about the situation.
If you do choose to sell your property make sure you have somewhere to stay on return and have thoroughly understood the costs of selling e.g. stamp duty, fees. Remember the property market can be unpredictable and buying a new property on your return could lead to downsizing.
Leaving it empty
If you’re only going for a short trip or don’t like the idea of letting your home you could always leave it empty. Most insurance companies will not support a claim where the property has been empty for more than 30 days, there are specialist companies who will provide cover but you will see an increase in your premium. It would be advisable to check your insurance policies and ensure your home is as secure as possible. It is a good idea to ask a friend or family member to keep an eye on it too.
Alternatively you could look at using a house sitter. A house-sitter can be a friend or family member who will look after your home (and pets if you have them) in exchange for free rent, again check with your insurance company that this is acceptable. If this isn’t viable for you, the alternative is to look at professional house sitters. Professional house sitters are agency managed staff who will look after your home, do a variety of chores and can even keep an eye on elderly relatives. They are not allowed to entertain in your home and should be fully insured by their agency; they are expensive and you could pay up to £300 per week depending on your circumstances.
If you have a cleaner you may need to come to some arrangement that suits you both whilst you’re away, many people still like to have their home cleaned and the cleaner’s visits act as regular check.
Letting your home
This can be relatively worry free and of course bring in income to cover mortgage costs and sometimes more whilst you’re away, it is only suitable for career breaks of two months or more as generally tenancy agreements need to allow a two months notice period, a six months minimum contract is the norm. Remember sprucing up you property with a bit of decorating before you go may help to increase its rentable value.
You will need to ask your mortgage lender for consent and usually, if it is for a period of less than two years, this shouldn’t pose a problem; your payments will generally stay the same or rise only slightly. It’s best to start looking for tenants at least four to eight weeks before you leave. Don’t forget that income from renting a property is taxable and you should contact the Inland Revenue for advice on managing this correctly.
If you decided to rent privately remember to make sure you have watertight references and a written tenancy agreement and preferably someone you can trust to act as a point of contact should anything go wrong. You will need a tenancy agreement, which can be drafted by a solicitor or even bought ‘off the shelf’ at good newsagents; remember to ensure that the arrangements for council tax and utility bills have been covered.
Using a letting agency may bring greater peace of mind, they’ll do much of the work for you, including sorting out income tax payments, but will charge somewhere in the region of 10-15% of the rental income for finding a tenant and then of the income whilst managing it. If you choose to use a letting agent make sure you look at least three different agents and research and interview them thoroughly.
If you choose to rent your property furnished you will need to ensure that appliances and furniture confirm to current safety standards and have the relevant safety certificates; if you rent through an agent they will be able to assist you in identifying any changes that may need to be made. It is always advisable to store any valuable or precious items when renting out your home and make a detailed inventory of what is available to the tenant – just in case.
If you choose to rent your home unfurnished it will yield a lower rent but may give you greater peace of mind. Unless you have a relative or friend with a secure space it’s best to look at using professional storage companies. Ensure that you research them thoroughly; check out their premises, insurance arrangements and access to your property whilst it is being stored and at the end of your arrangement. Remember that jewellery and cash shouldn’t be stored in this way and are best placed in a safety deposit box.
You will need to speak to your insurance company and ensure that you have the correct policy whilst renting out your home.
If you have a second home you will need to ensure that you make many of the same arrangements as above for this too, it may be advisable to ensure that a close friend is authorised to deal with any problems whilst you’re away.
Your vehicle
Depending on the length of your trip there are a number of options to consider:
Selling your vehicle
Depending on how long you’re going for selling your vehicle may be a good idea. Vehicles will continue to de-value during your trip and be at risk, there may be some validity in ‘cashing in’ now and buying something on your return.
Loaning your vehicle
By letting a trusted friend or family member use your vehicle whilst you’re away you can make sure your car is cared for and maintained. Don’t forget to make all the necessary insurance arrangements prior to departure.
Storing your vehicle
Make sure that you identify somewhere secure for storage and someone to keep an eye on your vehicle, ensure you check that your vehicle is adequately insured. If the vehicle is not going to be in use for more than a few weeks you will need to complete and submit a Statutory Off Road Notification (available from the Post Office) to avoid possible prosecution, remember you don’t have to pay road tax whilst away and may even be able to claim a rebate on the tax you’ve already paid.
Related articles:
Managing your Career break at work
Sorting out financial responsibilities
Considering your loved ones and dependants
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