Feeling Desperate re BTL mortgage - any advice?

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SouthCoast wrote: »

This is still my favourite BTL story:




http://www.theargus.co.uk/news/1985710.mum_trashes_325_000_home/

Tee hee, imagine that happening to the Wilsons on a 900 property scale. Laugh, christ I'd die laughing.:D

sdooley

If she said she'd lost lots of money investing by gambling on the horses, would you be so sympathetic?

I'd hope we can be sympathetic to either type of speculator when they fall on hard times. But even being sympathetic, the OP needs to sell a few properties and cut her losses. What if another tenant fell into arrears on rent?

ad44downey

hethmar wrote: »

You have "quite a few buy to lets"?

Any sympathy I may have had has disappeared. The OP got a bit too greedy, sell the other BTL's if you're having financial trouble, some young couple might be glad of the chance to buy their own home instead of being exploited by some BTL vulture

FoxtonsRIP

SuperMum2008 wrote: »

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

You gambled and lost. It's just a pity it wasn't your own money that you lost and not someone elses.

teabelly

Guaranteed rental scheme is a good idea. Northwood are one agent that does this. Catch is that the rent is low enough to cover any likely voids and if they think the place won't rent they might not take it on. You are much better using a proper agent rather than finding a tenant yourself.

Did you not have insurance to cover the cost of repairs? How many months rental profit did it cost to repair?

If it cost that much to repair it might have been better to leave it empty. Flats aren't selling well. If you want to sell then you'll have to sell it around 2004 prices as surveyors are valuing around 2006 prices. Only investors are buying and they aren't going to pay you anywhere near market value when they can smell desperation. Most flats will rent, you may just have to drop the price significantly or include council tax/water rates in the rent.

Conrad

Mum

Your question is one of those without a definitive answer.

1) Sell it quick now and probably make a capital loss

2) Tough it out, reduce the rent to minimum (new flats often need to be priced at the lowest peg as there is probably lots of supply where you are)

Only you can take the decision

I once bought a dog and made a substantial loss, but I was glad to be rid and move on. It took it as a positive lesson never to buy at the wrong time in the wrong location again

granville_2

SuperMum2008 wrote: »

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

But your total income from these properties is less than your total outgoings? Therefore all is not fine. You really need to assess your business plan (you do have one??) - it is going to get a whole lot worse out there.

Remember, debt is not wealth.

Good luck in whatever you decide to do.

North_Sea_Bubble

SuperMum2008 wrote: »

LTVs all at their max on the others, the rental covers the others ok, and there is a small surplus

You need to consider this as well. It would scare the hell out of me at the moment !!!

Trollfever

Quote:
Originally Posted by SuperMum2008
LTVs all at their max on the others, the rental covers the others ok, and there is a small surplus

North_Sea_Bubble wrote: »

You need to consider this as well. It would scare the hell out of me at the moment !!!

Can I say.........................

Margin Calls?

brit1234

Trollfever wrote: »

Can I say.........................

Margin Calls?

The banks don't need margin calls despite them being written into the mortgage agreement.. They are just reducing the loan to value ratio forcing over geeared and greedy landlords on to the SVR when it comes to remortgaging and then simply repossessing. Its just another way of doing margin calls. With about another 35% in price falls to come the buy to let market is going to be desimatted.:D


Suddenly we will have homes for FTB again.