Struggling BTL Investors

Dithering_Dad

Pobby wrote: »

Hi DD. I guess that, for the moment, if the landlord can keep up repayments on the "empire" then it should not be an issue IF the properties have been set up as a seperate company away from the personal debt.
My concern is for the tenant.

I read somewhere that if your home is in negative equity, then you can keep it even if you go BR. I'm assuming here that as long as you keep up the mortgage repayments on the main home and BTLs and the various mortgage providers are happy for this to continue, then one could feasibly go bankrupt with personal debt and yet still keep BTL properties?

purch

Does anyone with more than twelve dendrites have anything to say?

I have 11 1/2 dendrites (lost 1/2 of one, on finishing the 3rd bottle of Hermitage on Xmas Day)

The last thing the broad economy or narrower housing market needs right now is a huge number of BTL landlords becoming forced sellers or even worse defaulters.

Whatever your personal opinion of them might be the bigger picture doesn't require retribution of this kind.

The Housing Market needs to kind a natural bottom, not an accellerated one caused by property owners falling into bankruptcy.

nickmason

Pobby wrote: »

Hi DD. I guess that, for the moment, if the landlord can keep up repayments on the "empire" then it should not be an issue IF the properties have been set up as a seperate company away from the personal debt.
My concern is for the tenant.Thinking about it, my guess is we will see at lot more of this. I wonder if Broon and bust has some sort of rescue package up his sleve for the plight of tenants. Oh I sometimes give up when it comes hpi and certain btl landlords. GG is excepted from that statement as he does seem to know what he is doing.

I agree we will see a lot more of this.

I'm starting to think that the concern for the tenant is a red-herring. If some LLs went bust then it would encourage tenants to check that the LL is a "good'un". Every time I've rented, I've wanted to know a little about the LL. caveat emptor. Instead we are bailing out LLs; effectively we are paying (communally, and therefore in a forced manner) for the product guarantee like those that they (try to) sell you at Dixons, with the product being a tenancy. Bailing out LLs rewards the bad ones.

Pobby

Dithering_Dad wrote: »

I read somewhere that if your home is in negative equity, then you can keep it even if you go BR. I'm assuming here that as long as you keep up the mortgage repayments on the main home and BTLs and the various mortgage providers are happy for this to continue, then one could feasibly go bankrupt with personal debt and yet still keep BTL properties?

Yes I read that also. This hpi/ btl explosion of the last decade does seem to be coming apart in ways I never imagined. This so reminds me of the late 80s. Everyone piling in and very few knowing when to get out. How many will get burned by " the deal to far "has yet to be seen. Was talking about an aquaintance in the south east. He gave up his job and was buying, refurbing and flipping a house one at a time. He is now stuck with his last project. It could be a disater.

Kenny4315

My BTL's are doing better than ever. With interest rates dropping like a stone. Sure I'll take a capital hit but that doesn't matter as I don't need to sell and have tons of equity even if there's a mega drop, well over the 30% equity (even if there is another 20% off), required to get a half decent deal. For me to reach negative equity then the country will be beyond on its knees. Mosy guys like me are seeing summer (july/august) time as a real opportunity. Reduced house prices, reduced competition, tighter controls on mortgages (less BTLers/more renters), is going to mean proper rental values for the first time in ages. Rather than prices being kept down by idiots, subsidising the BTL from other income on the basis of capital increases that can never be sustained in the long term.

nickmason

purch wrote: »

The last thing the broad economy or narrower housing market needs right now is a huge number of BTL landlords becoming forced sellers or even worse defaulters.

Whatever your personal opinion of them might be the bigger picture doesn't require retribution of this kind.

The Housing Market needs to kind a natural bottom, not an accellerated one caused by property owners falling into bankruptcy.

I understand all that, and I think I agree. I do, however, think that something does need to be done about what happens when
f-e-c-k-less personal risk management
meets greed and high leveraging
meets perverse incentives from BR/IVA choices

Kenny4315

don't get me started on IVA's :mad: and BR's :mad: ........ they make my :mad: :mad: :mad: :mad: gnikcuf :mad: :mad: :mad: :mad: blood boil. They make me so :mad: angry :mad: I could turn into the incredible hulk. :mad: :mad:

:mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad: :mad:

Live the life of riley and just write it all off :mad: BAR STEWARDS:mad: . :mad: :mad: :mad: If you spent it PAY IT :mad: :mad: :mad: :mad: :mad: :mad: :mad:

leveller2911

I find it amazing how we as a nation "grasp" capitalism with open arms one minute then try and change the "terms and conditions" for the benifit of the few.I would ask the BTL to have a face to face discussion with the 100,000s of hardworking ,saving people of this country who partly due to his/her greed have been priced out of the housing ownership.:eek: :eek: :eek:

I say let nature take its coarse and let them sink :beer: :beer:

I feel sorry for the tenants, but as 1st time buyers will still NOT be able to get on the ladder this year I believe rents will still decrease and there will still be a surplus of renting accom.For one thing I believe all those nice,overpriced apartments will be up for rent......:rotfl: :rotfl: :rotfl: (im NOT bitter.....honest)

boyse7en

What he needs to do is put all his BTLs into administration, then immediately set up a separate company to buy them at fire-sale prices, thereby getting rid of his debts and keeping the properties.
It works for Tom Hunter (USC) so why not the 'common man'

leveller2911

:rotfl: And worse thing is I still havent got a clue what "Dendrites,soma and neurons " are...Least I can spend my book token on a nice little dictionary..:rotfl: :rotfl: :j