Advice/info needed please!

desperatemark

Hello Everyone,

I have a BTL flat that I need to get rid of due to rather unpleasant people below, who have made it hard for me to ever rent it out again. My problem is that the flat has serious negative equity of at least £20k based on a mortgage of £75k. Bearing in mind that the loan is on a lifetime tracker and therefore pretty cheap at moment (£90 pm), does anyone believe that the lender (a part nationalised one) would allow me to sell for say £50k and allow me to negotiate a lower figure for the shortfall (which I realise will have to be paid before selling? If so, do you think they would accept a settlement for half the shortfall? I have debt problems as well, but could probably raise £12.5k. Many Thanks.

BitterAndTwisted

Put it this way: if you lent someone £100 would you accept payment of £50 in full and final settlement? If you sell you will have to come up with the shortfall as a lump-sum otherwise everyone in negative equity would be selling and paying the shortfall one day, some day.

What are the issues precluding you being able to re-let the flat?

desperatemark

hi, thanks for your reply.

will always be worried about future tenants getting grief from 2 sets of neighbours. No decent tenant would put up with them, and I will always be expecting phone calls about problems. Someone told me that lenders may sometimes accept a loss on a property, if the property had negative equity, rather than an owner simply allowing a property to be repossessed and the lender potentially making a larger loss post auction.

Sammy85_2

Lower the rent enough and you might get tenants who will give grief back at the neighbours, or who just wont care what the neighbours are like because the rent is cheap.

If your mortgage is only £90/month then you should have some room to be able to reduce rent.

I doubt many lenders will wipe out part of your debt to them.