Renting at a loss

Fire_Fox

kar-kier wrote: »

I think that bankrupsty may be my only option. I have absolutely no savings/ investements/ property other than the house in Scotland. I have found companies that can help you make yourself bankrupt in the UK while living abroad, but all only apply to England and Wales - does anyone know about Scotland? May be worth noting that I also have about £20k of unsecured debt that is being paid by DMP, which I am also stuggling to afford.

DMP with a free debt charity (CCCS or Payplan) or with a fee paying company? A DMP should make your debts affordable, that's kind of the point, if not then you are either struggling to budget or you haven't kept the DMP provider informed of any change of circumstances. You might do well to post on the Debt-free Wannabe board.

silvercar

kar-kier wrote: »

I am currently on a 457, I will be sponsored for permenant residencey in 18 months time. I know that bankruptsy will have no effect on my visa application, so not worried about that.

Will bankrupcy have an effect on your credit record in Australia?

If not then post the keys back to the lender and let them sort it out. Once the property has been repossessed you will need to go bankrupt to rid yourself of the shortfall. If you don't the lender could chase you in 5 years time for it.

GDB2222

If you are this much in the hole, bite the bullet and go bankrupt. Start a new debt-free life in Oz, and don't rack up any more loans. Have a happy life.

Nosht

Bankruptcy in Scotland only lasts for a year then you are discharged, but for overseas residents ???? N. P.S. Also you do not always lose your home.

theartfullodger

I don't understand

I currently own a property in Scotland which we rent out for £675 a month (get £600 in pocket once agent takes fees),

=
because surely as you are outwith dear bonnie Scotland you agent should be taking 22% and only giving you £480 as per
http://www.hmrc.gov.uk/CNR/nr_landlords.htm

- as I'm sure you told agent you are in Oz...


Can you enlighten us please??

Cheers!

Lodger

lynzpower

Doozergirl wrote: »

If silvercar's suggestion really isn't suitable...

Chelsea's current Stadard Variable Rate is 5.79% from what I can see. I've no idea what your fix is but if it is interest only, your payments should come down to £627 a month. If it is repayment then perhaps you should move to interest only.

Full management is also pretty useless from an agent and so if your tenanats are half decent then it's worth dealing with them directly and dumping the full management service. Frankly, for the little things, once the tenants have called us with a problem we let them get the work sorted themselves, send us the receipt and knock it off the rent. When we were tenants we also did the same with our landlord.

Managing agents will take a cut of everything and ultimately still have to run work past you and make you pay for it (really expensive from what our friend in London keeps getting bills for!). The fee is simply for being at the end of a phone line.

Doing that should turn things around for you so you're at least not making that loss every month.

Doozer, if the LL of an english property is living outside of the UK, then the LL has to nominate a manager for the property within the UK to contact in case of emergencies/ serve notices etc. I had a LL who relocated outside of the UK and this caused all manner of problems, INCLUDING that the AST was not valid and therefore we neednt have paid rent as it was unenforceable ( this is what my council private housing officer advised)

Im not sure if this is the same in Scotland, but Id have thought so