Can Anyone help?

redb_2

you and your girlfriend are on speaking terms still, so act now whilst you can share the pain of the negative equity, there are lots of posts on here about couples who have split and the partner has gone AWOL or just refuses to sign paperwork etc. For me this is the biggie and i would act now to sell and move on.

terryw

All in all, redb's advise above is well worth considering. Without wishing to add further misery, the pundits reckon that Manchester is in for the biggest falls if the property market drops any more.

JonnyBravo

terryw wrote: »

The OP would be well advised to declare the rental income. After mortgage interest has been deducted there is likely to be little profit.

I doubt if HMRC would be bothered that a "buy to let mortgage" was not in place. I doubt if they would even know.

Or am I wrong?

You're not wrong, and indeed the chance of him being discovered is pitifully small.

The business of being a landlord needs careful consideration though. What if his boiler develops a fault and carbon monoxide poisoning results in the death of his tenant? I'll bargain there's no gas certificate either. Result? Jail. For a long time. The chances of this are small again.

All in all it is very likely nothing untoward will happen but then that is hardly the basis for the decision.
It seems to me that he'll not be turning this into a BTL anytime soon (due to the negative equity) and with the profit being small I can only really see downsides for a long time to come.

He has said he wants to buy another house one day.... how will he get another mortage without turning this into a BTL?

Better to sell, pay off his debts and re-set himself...... IMO.

mick1234_2

great replys thanks you are all helping, yes I have got a gas certifacte it was the first thing I did and an electricty one, but i am moving more towards selling I think this is the best thing its just hard when ive had it for so long

JonnyBravo

An electricity one? What's that? I'm not aware landlords need an electricity certificate.

terryw

Not technically needed to comply with the law but certainly a good idea, even if just for peace of mind.

mick1234_2

i got all the wire checked off and got a certificate I did this for my peace of mind

DavidP24

mick1234 wrote: »

hi i am just looking for a bit of advice, I own a property the mortgage is £105,000 my ex girlfriend is still on this, we are speaking and she is fine to wait until i can get it moved.
Now the problem is the property is in negative equity about £5000,on my own my current mortgage company will only give me £80,000 so thats £25,000 i need to find which tbh sounds near impossible.

I have moved out of the property and my cousin is renting it he is paying £750 this includes bills there is a little profit here, I know it is not an ideal situation as it should be on a rental mortgage but until I can work out what to do it is helping me out, I have a £4000 loan which I am paying off with my wages and profit off the rental, but after this is paid im not sure what i should be doing, i've worked out I can pay around £5000 a year off the balance of the mortgage it just seems endless to pay of £25,000

ideally i'd like to get on a buy to let as it would be nice to keep the house as its my only asset but a 25% deposit is just impossible.
I appreciate any help anyone can give as im lost for ideas i have a budget and im living basic i dont go out drinking and dont buy new stuff as i want to sort this out and buy another house one day:j
thanks

This was one of my BIGGEST regrets at the last recession. My wife had left me with negative equity and a load of joint name credit cards.

I foolishly stayed in the property and serviced the debt until the market recovered. I sold the house as soon as it went high enough to pay off the debts and costs.

I did not rent it out because the mortgage company would not let me remove my wife's name until arrears were sorted.

What I found out later was I could have rented even if the mortgage company did not approve, the reality is as long as you service the debt they turn a blind eye.

I had an agreement with my ex but I should have made it legal. Six months after I sold the price doubled, I am still off the property ladder as can't afford deposit and stamp duty for a house large enough for my kids (have remarried).

My advice to you is don't rent to mates or family, do the place up and get top dollar rent. Get a lawyer to draw up an agreement where your ex agrees to forfeit rights (profits/ownership) and you indemnify her for losses.

Conrad

Ride the storm Mick, in tme all will come good. Don;t sell at a loss unless you absolutely have to.

As a broker in the last recession I cant tell you how many people came to me later saying they regretted selling at a loss.

Clearly there is nothing you can do on the mortgage front.

mick1234_2

Ok great thanks gives me some things to think about