Investing in a buy-to-let property in the UK could be the safest way for Brits retiring abroad to retain a sterling based asset and boost their monthly income, according to the editor of the Overseas Guides Company.
Richard Way said the changes to the pension rules, as highlighted in the latest budget, could encourage more pensioners to invest in a rental property, rather than buying an annuity before moving abroad.
“Later this month a hike in rental demand in the UK is expected when new regulations governing the granting of mortgages are introduced,” said Way.
“The Mortgage Market Review, which comes into effect on April 26th means the conditions for securing a mortgage are set to get tougher, meaning more people could be forced to rent their home until they are able to satisfy the new conditions for a mortgage.”
“From our experience at the Overseas Guides Company, keeping a rental property in the UK is a popular way to subsidise an overseas retirement and keep a foothold in the UK. It’s not unusual for expats to return to the UK for healthcare reasons when they enter the latter stages of their retirement, while many feel reassured having a UK asset to pass on to their family. It’s easy to see why buy-to-let is an increasingly preferred option with expats.”
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