Cannot repay interest only mortgage at end

undaunted

Equity release scheme - possibly selling the property but being allowed to stay rent free (such as Avivas home reversion plan http://www.aviva.co.uk/equity-release/home-reversion-plan.html ) - or retaining the property (loan & interest being repaid from it's sale after death or going into care http://www.aviva.co.uk/equity-release/lifetime-mortgage.html ) or if they can't obtain one of those one of the quick sale & rent back type companies such as "a quick sale" may provide a solution, even if terms are less attractive. http://www.a-quick-sale.co.uk/

There are of course other companies offering such schemes & they should do your own further research, these are merely for example purposes

Losing_the_way

I think you’re a very caring friend. I might suggest that the problem is them, you should avoid letting them think that they can just fudge over this, they are going to be made homeless. If they were more fiscally savvy they’d not be in this mess which will help you as they’ll hopefully not think of chasing after their previous advisers.
Best you continue to encourage them to sell up and start looking for somewhere nice to rent. They can now chose somewhere suitable to match their retirement. That might be the best approach to helping them come to terms with their position.

seikothrill

Just an idea

Property - £140000 Loan - £115000 equates to a LTV of 82.15%

Do they have savings, family members or a kind friend who could lend them £3000?

If they did subject to rental assessment couldn't they make use of The Mortgage Works 80% LTV BTL to re-mortgage to and then possibly rent somewhere short term.

Just an idea - a broker would be able help more

mlz1413

seikothrill wrote: »

Just an idea

Property - £140000 Loan - £115000 equates to a LTV of 82.15%

Do they have savings, family members or a kind friend who could lend them £3000?

If they did subject to rental assessment couldn't they make use of The Mortgage Works 80% LTV BTL to re-mortgage to and then possibly rent somewhere short term.

Just an idea - a broker would be able help more

They are retirement age and have no way of paying back the capital, getting them a further loan is just delaying the inevitable surely?

ukclare

mlz1413 wrote: »

They are retirement age and have no way of paying back the capital, getting them a further loan is just delaying the inevitable surely?[/QUOTE

That is the conclusion we reached.... Could not find them another loan due to age and self employment issues, even if we found something to help with the loan amount ratios it would not help.

We have tried brokers, internet, contacts, etc without success - as you know it is not so easy to get a "non standard" mortgage these days - especially without a feasible repayment vehicle in the future!

So we are left with the question of how long before repossession takes place if we are attempting to sell asap!

seikothrill

mlz1413 wrote: »

They are retirement age and have no way of paying back the capital, getting them a further loan is just delaying the inevitable surely?

A quick google search for The Mortgage Works criteria states they will lend to age 90.

This would give them ample opportunity to clear loan by:

1. Using overpayments from rent
2. Sale of property - property is a long term investment and looking back over history I would think over a 25 year (assuming people are 65) proeprty values will double.

Obviously they would have to rent for the forseeable future but I think this is an option to avid repossesion - talk to a broker

Brallaqueen

UKclare, please take a step back from this and take a deep breath. This is not your problem and it is not your responsibility to bail out these people from their own quagmire.

I can understand wanting to help, and getting frustrated at their refusal to listen, but this is their problem to resolve. Let them do it their way, you are putting yourself through the empotional and physical wringer over something that you are powerless to control.

Hugs

ukclare

Brallaqueen wrote: »

UKclare, please take a step back from this and take a deep breath. This is not your problem and it is not your responsibility to bail out these people from their own quagmire.

I can understand wanting to help, and getting frustrated at their refusal to listen, but this is their problem to resolve. Let them do it their way, you are putting yourself through the empotional and physical wringer over something that you are powerless to control.

Hugs

Well Brallaqueen - you have certainly hit the nail on the head and very timely .....
have just met the one of the people in question for a quick chat and it is clear that they have not put in half of the effort I have in trying to solve the problem!! During the conversation it became clear that they did not even know that their mortgage had been taken over by BOI (I am sure I mentioned this in the past!) If they have done so little reasearch that they have not uncovered this fact, or listened to my feedback I am clearly wasting my time. So with the best intentions, and to stop my permanent stress headache, in the words of the Dragons ... I'm out!

Thanks for the constructive comments and help you guys have provided on this board they were very much appreciated!!!

carlw

You could consider talking them in to selling the property to you at a reduced amount, due to the fact they will lose lots of the equity if 1. the property is repossesed or 2. they have to sell quickly and cheaply, plus estate agents fees and rental deposits etc.

You could then put a few thousand of your own money in (depending on how much they are happy to sell it to you for) and rent it back to them.

Obviously you would have to check the figures add up. But this could be both a good investment for you, and a solution for them.

Senior_Paper_Monitor

In response to Seikothrill ....

The briefest review of 'Mortage Works Criteria' also states for 'first time landlords' ....

Buy to Let new business products are available for first time landlords (for purchase only), classified as applicants who have not owned and let a buy to let property for the last six months. Subject to:
• Max 70% LTV (Customers purchasing over 65% LTV must choose from the Let to Buy product range)
• First time landlords must be owner occupiers (with or without a mortgage)
• The applicant(s) must have owned their residential property for at least 6 months at the time of application
• Loan purpose: to purchase a new buy to let property


several of which appear to prevent the case in question.

This really does seem to be a case where this was sold with no sense of responsibility (but probably not illegally) and there appears little hope of sorting the situation as described