Tuesday 04 October 2022

Buying a new home or leaving NL? What should you do about your current property?

Do you own a house in the Netherlands but are moving to a new country? Or are you about to buy a new home in the Netherlands and would you like to keep your original property? Here’s what you need to know.

If you work for an international company, you could find yourself being moved to a new country. Or you might simply be interested in moving to a bigger home in the Netherlands itself. So should you sell, or could you perhaps rent it out to someone else?

Here are some things to think about if you are going to rent out your home

Firstly, you will have to get permission from your mortgage provider – because many contracts include a non-rental clause. You may find yourself having to agree to a new mortgage to take this into account, and could face a penalty clause because technically you are starting again. You may also have to pay new notary fees.

It is worth noting, however, that ABN AMRO mortgages can usually be adjusted  easily, so you won’t have to agree a new deal or go to a notary again. An ABN AMRO mortgage on a rental property can run for up to 30 years and if your property has energy label A or B, you can borrow up to 80% of the market value of the property when rented out.

There are, however, some downsides to renting out property which you should take into account:

  • You may also need to get permission to rent out the property from your local authority and from the home owners association (VVE)
  • You may be unable to find a tenant for a longer period or at the rent you expect
  • You may have to deal with changes in government rules covering rental properties, including obtaining a licence or pay higher taxes
  • Don’t forget the additional costs you will face, such as insurance, maintenance, ground lease (erfpacht) and VvE contributions
  • Remember too, that in the Netherlands tenants enjoy a high degree of legal protection, and if you decide to sell the property, you won’t be able to evict them just because you want to

‘We recommend people obtain expert advice and information about what to consider and the risks in letting residential property,’ says Nathan Themps, advisor international clients at ABN AMRO, which has a special website section about ‘leave to let’ to help customers facing this dilemma.

If you are thinking about moving, but keeping your original home, ABN AMRO also offers a mortgage which can cover up to two properties. To qualify, your project must meet the following conditions:

  • The monthly net rental income is at least equal to the mortgage payment
  • You have a monthly income which covers your own property and part of the rental property costs
  • The rental income does not exceed €35,000 a year
  • You should also make sure you have a financial cushion so you can meet both mortgages should you fail to find a tenant in time

Click to find out more about renting out your home

Is switching to a keep-to-let mortgage contract something you should consider? If you have an ABN AMRO mortgage, you can use a simple tool to find out, when logged in to your personal mortgage page.

If you’d like to find out more about buying a home in the Netherlands, ABN AMRO runs regular events to help answer your questions. The next online one takes place on September 14  or you can meet the bank’s experts in person in Utrecht on September 22. Sign up here.

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