Feeling Desperate re BTL mortgage - any advice?

SuperMum2008

Hi, I have a buy to let flat which I cant get rented - I have the property listed on 4 websites, have contacted a couple of large companies re corporate rental and the local university re student rental. The last tenant trashed the property and has cost us a fortune to restore, so we have used up all our reserve. I have reduced the advertised rent considerably, so that I would be taking a loss, but at least that would be something. I have asked the mortgage lender for a payment holiday and they declined. I asked the bank for an overdraft and they declined. Ive missed one payment and just dont know what to do. I have had an agency view the property and he waxed lyrical about the beauty of the flat, but said November and December are tough months to find tenants. I am doing craft fairs to try to raise some money, have an ebay shop to try to raise money - I am doing all I can to try to get cash into my account and yet nobody seems to be able to help me.

Does anyone know the process re saying to the lender to just take the keys and the property? Is that wise? I dont know which other way to turn now. I know this is a common problem - and any thoughts or advice would be so very welcome!

Thankyou!

silvercar

Are you trying to sell the property or let it?

If you want to sell then consider an auction or price it low to get a sale.

If you want to rent it then you need to find out why it hasn't rented.

As for handing the keys back. The lender will sell it cheap to get rid of it. You may as well do this yourself if you can. Is there any equity in the property? If not the lender will chase you for any shortfall. Do you own your own home? The lender could get a charging order on your home to cover the shortfall.

SuperMum2008

I would like to let it but have had little response to recent adverts. The experience with the last tenant shook me up and I would be glad to see the back of it, I have owned it since January/Feb time so have little equity in the property although I would hope to cover the outstanding mortgage. I wonder should I get some agencies to value it for me and see where I stand. Thankyou for your info.

carolt

If you really want to rent it, try a private rental via the newspaper classifieds, at considerably under market rent?

Or try personal networks, eg noticeboards at work, school newsletters etc.

I don't think anybody wants to tell you the truth you know yourself - you're certain to lose money over this.

Maybe if you tell us where it is/how much rent you're asking, people with local knowledge will be able to help?

I don't need to tell you, I'm sure, that this year was a bad time to be getting into BTL - I just hope for your sake, that you bought at a substantial discount.

Hopefully, your story will be a salutary lesson to all those who thought BTL would be the quick route to 'Easy Street'. Unfortunately, your story will not be unique.

davey9998

hi supermum

to be very truthful there are few options for you but i will try and help anyway

you could sell the property but if you think you would clear the mortgage then you may have to think about selling the property although my personal opinion is if you think you would clear the mortg then you may infact have to sell WAY below what you think it is worth and take the hit. Things just aren't selling at the moment.

Could you afford to try and rent it out for MUCH less to at least get some money coming in through the door? Entice people with half price rent for 6 months or something - yes nov dec and even jan are quiet months.

If you just hand back the keys it will go to auction and sell for peanuts and the lender WILL come after you and it could be for a lot of money and they have the money and legal professionals there to help

i say your best bet is to drastically drop the rent and possibly get another job to help pay the bills

I do have to say though that everyone got on the btl bandwagon without thinking things through. Did you not think what if i cant let it? what if the tenant doesn't pay etc. You are saying also that nobody is willing/able to help you but the best advice is that it is your responsibility and you have to be responsible for it - get another job, decrease your spending, find a tenant, take a lodger in your main home, sell some of your assets, work overtime at work, if your children are old enough get them to work and stop their allowance.

hope this helps

SuperMum2008

Thanks for the above. I agree retrospect is a wonderful thing, and so is forward planning! I have quite a few BTLs and so am pretty experienced, and had never had trouble before (although totally appreciated that it might well happen at some point), I had built up a reserve, but just had a terrible time with a nightmare tenant who fleeced us and trashed the place, depite us having references, and the tenant being a professional man. I work full time, have a young family, and am now already doing all the extra things I had mentioned in my email above. So I do think I went into it fairly well prepared, and have demonstrated my commitment to try and resolve. But I see your point - just had hoped there might be something I was missing that would help somehow...I guess not...Sigh.!

SuperMum2008

PS - Am I allowed to say where it is etc?? Didnt think I was?

hethmar

You have "quite a few buy to lets"?

SuperMum2008

Yes, and all the others are doing fine, we just cant resolve the problems with this one.

mystic_trev

SuperMum2008 wrote: »

Yes, and all the others are doing fine, we just cant resolve the problems with this one.

Then why are you having 'Financial' problems? What are the LTV's on the others?

poppysarah

SuperMum2008 wrote: »

depite us having references, and the tenant being a professional man. .!

It would be so tempting to tell the referees what happened. And whoever he's being a "professional" for wouldn't be impressed either
Bet the law stops you though.