The Renters' Rights Act, tighter regulation and rising costs have changed the numbers for many UK landlords. Many are reviewing their options. Selling is one of them, but it is a big decision, and it is worth working through these questions first.
What is the property really earning?
Look at the income after all costs: mortgage interest, letting and management fees, maintenance, voids and tax. The figure that matters is what you keep.
What would selling cost?
Selling has its own costs: agent's and legal fees, any early repayment charge on the mortgage, and capital gains tax. Speak to a UK tax adviser about capital gains tax before you decide anything.
What about your tenants?
Your obligations to your tenants continue until the tenancy ends properly. Check the current rules, or ask your letting agent, before you plan any timings.
What are the alternatives?
Some landlords keep and improve their property, some move to a different UK property, and some look abroad. Each option has different costs, risks and tax consequences.
Where would the money go?
If you are considering property abroad, Abu Dhabi is one of the places UK landlords are looking. The UAE has no personal income tax, although UK tax residents remain liable to UK tax on overseas rental income and gains.
Get advice before you decide
We don't advise anyone to sell their UK property. If you are weighing up Abu Dhabi as one of your options, we can explain how buying there works, and we can refer you to UK advisers for tax, mortgage and financial advice.