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Working Abroad - What to do with house?

  • 26-04-2010 1:26pm
    #1
    JD1763
    Registered Users, Registered Users 2 Posts: 372 ✭✭


    Hi All,

    Long post incoming - sorry :o.

    Although I have seen a number of similar threads similiar, I had some specific questions that I was hoping some of you would be able to answer. Myself and my partner own a house, there is negative equity on it, (not a massive crippling amount) and we are going to start paying it down once our mortgage goes variable (our fixed term expires in Sep/Oct). However, with work I may be sent abroad next year for a 2-3 year term and depending on where I am sent there are different issues. But ultimate aim is to sell and move on for various reasons.

    We can comfortably service the mortgage as we had a significant initial downpayment made and an LTV of 80% at the time of purchase (yes this has increased since but we are not stretched in terms of repaying the loan and are saving towards making a lump sum payment once the fixed term ends).

    We have talked about our options:

    1) My partner stays here in the house and we continue to pay down the negative equity and look to sell upon my return 2-3 years from now.

    2) We both go abroad and try to rent the house and service the shortfall between the rent and the mortgage as well as paying down the negative equity. Then sell once we can clear the mortgage with the proceeds.

    3) We try and sell the house now, convert the o/s negative equity to a personal loan and pay that off while abroad. I dont think this is possible but havent found a definitive answer on this.

    I would like to source boardsies opinions and advice on our best options going forward or from anyone who has gone through this and how they dealt with it. Are there any legal implications, tax etc that result from any of the options that we need to be aware of? I saw someone mention in a thread that renting a property leads to a CGT liability upon disposal - does this apply if you move back in first?

    Thanks for reading all my gibbering and your comments.


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