The solution for one in the UK is to create what is known as a SPV, a Special Purpose Vehicle, essentially a company-style run paper exercise which works in its simplest form like this:
- You set up the SPV with the sole intention to purchase and rent out your property;
- You hold 100% of shares in the SPV (or distribute them at your choice to others);
- As you run it as a company interest relief as per above remains valid as company is based in UK;
- Additional corporate expenses can be subtracted from running your SPV, think of required travel costs for (bi-)annual inspections, running costs, insurance;
- As per any corporate entity in UK, the SPV can reinvest or pay its shareholders;
- Residency does not have value in this case as the reinvest option allows moneys to be reinvested into another SPV in future for a separate purchase;
- Shares can be in future transferred to wife and/or children or others as you wish;
- SPV remains free from inheritance if constructed properly;
- SPV can get mortgage as a corporate entity, your living status is not a problem, a UK family member could set up a SPV for £1, additional shares then made available to you;