Although a house is a valuable investment, it can turn out to be a burden when you want to travel but have no one to take care of it in your absence. As such, relocating to another city or county can be both scary and exciting with the prospect of challenges and experiences.
Among the challenges of relocating is the prospect of not being able to achieve a quick house sale and this may affect your travel plans either by delaying or having to put them to a complete halt.
Estate agents often understand the urgency as well as relief that is associated with being able to achieve quick and private house sale before emigrating or relocating.Therefore, if you want a quick house sale before travelling then you must pay attention to the following:
- Location – Get to know the different selling points of the location of your property. This may be the presence of social amenities, schools and great infrastructure. Buyers are usually attracted by a number of features other than the house itself. Thus, you will do well to ensure that the estate agent highlights all the property as well as the area so that they can sell your property fast.
- Let your mortgage lender know of your intentions – It is prudent to let your lender know that you are moving. This is important because of the mortgage terms and conditions. Failing to inform them may lead to a demand that you repay the mortgage in full or face criminal prosecution. Letting lenders in on your next move is a good way of opening avenues for other options among them moving your mortgage to a buy to let product, paying a slightly higher rate until the property sells and having at least 3 to six months to sell.
- Inform your home insurance provider –You will do well to inform your insurer of your intention to travel because by when your house is vacant for more than 30 days, they may apply the clause that removes their liability meaning should anything go wrong, then your insurance is void. Should you resort to renting your house, you will require to change the insurance to the Landlords Buy to Let insurance policy. Although this process is usually simple, failure to take action may attract serious implications particularly when you need to make a claim. Therefore be sure to take care of the insurance soon enough.
- Know the tax implications – You need to know the tax implications when you are relocating. If you are relocating to an overseas destination and you meet the following criteria, then you will not need to pay capital gains tax. The criteria is as follows:
Your house was not purchased for income generation purposes and it is your main residence. The house has been your main residence from the time you purchased it.
The house has only been used by you and your immediate family members for the period of ownership. Both you and your partner own just one home that is also your main residence. The plot size of your home is not greater than 50,000 square foot.
If you meet the criteria outlined above, you don’t have to pay Capital Gains Tax on the sale of your property. You may also rent your property for at least three years before putting it up for sale. In fact, this is common where home owners have relocated abroad for a short duration for work. On the other hand, failure to meet the criteria that is defined above means you will have to pay the capital gains tax.
Ultimately, you can sell your house before heading out to a new city by laying out plans that are realistic and getting expert help.