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  • Debt & Negative Equity

    Scary stuff - underwater with MX!



    I had a landlord  call me this morning

    he wants to sell 10 BTL properties

    Value he thinks is £950,000 purchase price in 2007 One Million

    He owes £850,000 Mortgage Express  Term ending in less then two years

    Rental Income £54000

    Property is owned in joint names wife is on a salary of 45k and he has no job

    I think he is in negative equity I would value the property at around £800,000

    He is clueless on PRA and knows a little about S24

    So where will he go

    Can he sell he can at a loss

    Can he transfer into his own name and use his allowances

    Can he get a Mortgage with PRA lending restrictions

    He has little cash because he wants to buy a new home under Help to Buy

    He lives in rented accommodation

    any thoughts guys and girls

    This case highlights the North South divide such a lot

    He has had a million pounds of investment property that has lost money since 2007

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    If the Landlord owns BTL Properties, he wont be able to use Help to Buy (unless they are sold).

    If he is in negative equity then he wont be able to remortgage? unless he puts money down to reduce the debt. So same goes for transfering into his own name.

    He may be able to discuss with this lender - to sell at a loss but will then owe the lender monies if he is in negative equity unless they are willing to give a haircut.

    Id recomend he talk to a financial adviser - as the term ending in two years will mean mortgage express will come knocking asking him to repay the loan in full.
    So he needs to act now.


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    _________________________________________________________________________


    The above post is not financial advice, its often me rambling - passing time on a coffee break.
    If you are looking for the Best BTL Mortgage? Call the Specialist Team at Bespoke Finance.


    _________________________________________________________________________


    I agree with you

    thanks DL

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    How much is left of his rental income after expenses?

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    I think his casflow  should be ok if he is on a tracker

    so he should pay down his loans but 2 years is not  lot of time


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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    HI

    Please give me a call on 07500 55 55 60 

    I possible can help, he has a few options however I need to have full details and will need to meet with your aquaintance

    Hiten


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    Hi Hiten,

    Please can you provide your FCA registration number and any other professional credentials?

    Thanks.

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    Hi Vanessa

    I am an Acquisition Specailist not a Finance Broker so I don't need a FCA number. I have the contacts to professional that can help this landlord as would be the introducer.  I have helped many landlords who have been in this position, a vast number of  landlords have been sold new builds or have been given bad advised to keep remortgaging, which has put them in this position.

    As I said I can help and point the landlord in the right direction, any legal advise would be given by legal professionals


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    Crazy situation which highlights the difference in prices, in London 1 mill would barely get three quality 2 bedroom BTLs

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    that's why I get annoyed with the govt

    they set policy from the SE when we have two different markets

    Landlords in the NE have not raised rents in 10 years

    and the Govt Talk about rent control

    its madness

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.