Feeling Desperate re BTL mortgage - any advice?

SuperMum2008

LTVs all at their max on the others, the rental covers the others ok, and there is a small surplus, but having this one empty and having had to use all surplus to rectify problem tenant has left us with nothing and no rental income this month to cover the mortgage on the property.

I know it is very easy to judge people with BTLs and do the old "tough, you should have known better" routine, but I had posted my genuine query and concern in the hope that someone might be able to give me constructive advice, but I sense a series of "poor wealthy idiot" lectures coming on, which couldn't be further from the truth.

SuperMum2008

poppysarah wrote: »

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.

Thankyou Poppysarah!! The professional got in with the wrong crowd, and subsequently lost their job - if it hadnt been my flat they trashed I would feel very sympathetic!

Innys

SuperMum2008 wrote: »

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

Hang on. You have other BTLs doing fine but this one is making a loss. By "doing fine", I assume you mean they are not making a loss.

If so, do you not make enough profit from the others to reduce the loss on this one?

Frankly, if you had several properties and only one was underperforming, I'd think you should count your lucky stars. There are many nowhere near as fortunate as you.

Plus, as for this comment from another poster:

"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."

Not all BTLers thought it was a get rich quick scheme. A lot bought years ago and are largely unaffected by the current housing crisis.

carolt

SuperMum2008 wrote: »

LTVs all at their max on the others, the rental covers the others ok, and there is a small surplus, but having this one empty and having had to use all surplus to rectify problem tenant has left us with nothing and no rental income this month to cover the mortgage on the property.

I know it is very easy to judge people with BTLs and do the old "tough, you should have known better" routine, but I had posted my genuine query and concern in the hope that someone might be able to give me constructive advice, but I sense a series of "poor wealthy idiot" lectures coming on, which couldn't be further from the truth.

Well, as long as you've done a sound business plan, and all is going smoothly, then nothing to worry about then.

Excellent.

Obviously, your business plan included nightmare tenants - as you have several BTL's, you'd know that sometimes tenants do lose their jobs/not pay the rent/trash the house.

But obviously, you'd have prepared for that, as a professional landlord with lots of experience.

That's alright then.

silvercar

If it just won't let at anything reasonable then it is time to drop it from your portfolio. At some point you just need to make a decision and go for it. To put it for rent and for sale is an option, but it would put tenants off as (a) they may guess you are in financial difficulties, and (b) they may not want to risk being turfed out in a few months time.

Get some agents in and get a valuation and price it realistically to sell quickly.

With a portfolio of properties, you can't risk a repossession as the lender will put charging orders on your other properties, making them a nightmare to remortgage.

If you make a loss, at least you stem a further drain on your finances.

Every cloud has a silver lining - you will get tax breaks from the loss.

carolt

Innys wrote: »

Not all BTLers thought it was a get rich quick scheme. A lot bought years ago and are largely unaffected by the current housing crisis.

Yes - but the OP said she bought this one in Jan of this year. That was clearly a lousy time to be buying, with prices widely predicted to fall. Prices are still predicted to fall further next year, maybe longer.

So it is clearly still a rather dumb 'route to riches'. My post was meant as advice for those thinking of getting into it now, not for those who managed their timings rather better.

wanna-be-mortgage-free_2

Hi SuperMum2008

I am so sorry that you are having trouble with your BTL. This forum should not be about judging others and the problems they face. We are all here to get help and advice, we have all done things in the past which seemed like a good idea at the time, I won't go in to all my past decisions

Stay in there, keep chipping away, I've no doubt if you take some of the advice offered here like reducing rent drastically or trying to sell to cover your mortgage, you will see light at the end of the tunnel.

Good luck.

brit1234

SuperMum2008 wrote: »

LTVs all at their max on the others

I know it is very easy to judge people with BTLs

I'll try best to hold my tongue. :mad: If you have no luck on this forum try these two below, full of landlords with a wide berth of experience.

Singing Pig
http://www.singingpig.co.uk/forums/?GroupID=10





Landlord Zone
http://www.landlordzone.co.uk/forums/index.php

PasturesNew

I live in a block of 8 flats. 2 are owner-occupied, the rest are BTL.

Recently two flats here went up for rent, with different agents. One had a steady stream of viewers round it and a new tenant moved in the day the last one moved out. The other one had 2 viewers at first and since then none. The thing is: the empty flat is by FAR the better of the two for a myriad of reasons. There is nothing better about the one that has rented.

It's down to exposure. The reason one flat rented was because their agent is better than the agent of the empty flat. It's about how many people knock on an agent's door looking for somewhere to rent. You are currently advertising the flat yourself. If you want to try some crazy stuff, could you door knock all of the neighbours and ask how they rented theirs. If it was an advert, which paper; if an agent, which agent. See if there's one paper or agent that seems to be performing well for other landlords in that area.

If the owner of the empty flat had knocked my door on Sunday when he was about picking up post from his empty flat I'd have been able to tell him exactly which agent is consistently getting tenants into these type of flats.

Good luck.

EliteHeat

SuperMum2008 wrote: »

I have quite a few BTLs and so am pretty experienced, and had never had trouble before

I have a feeeling that you have just lost everyones sympathy