what to do about negitive equity

ludevotie

Not sure if i am doing this right but i would like some advice, i rent out a fla but have had problems renting and wouldl like to sell it but i am in negitive equity -i am in debt up to m eyeballs but on a management plan and everytime i think i have actually doing ok something else crops up a tentant leaves and i have another mortgage to pay and i was wondering if there is anything that can be done to get rid of a property when its in negitive equity?

any advice would be greatly appreciated.

Thanks

PNPSUKNET

cant you go through these agencys that guarantees rent, or even approach the councils housing dept

MrsTinks

Well you can sell it and treat the left over debt as another one of your debts... Your options are to keep renting it out, move into it yourself or sell it and pay off the negative equity. Sorry there is no magical solution to negative equity I'm afraid...

zarazara

Tell it to take a more positive attitude. Negativity is bad for health. Get it to post its 5 good things for each day on the OS board.

isy1011

Try to sit it out or like the more helpful poster said move in yourself as you will be paying rent no doubt.

ludevotie

PNPSUKNET wrote: »

cant you go through these agencys that guarantees rent, or even approach the councils housing dept

Thanks but i really don't think you should judge

niccatw

Hi there

I understand your difficulty as I now live in my flat with a lodger!

Are there reasons it is difficult to rent out your flat? Type of lease? Price? Size of property? Area? Is there anything you can do to make your place more attractive to prospective renters?

I understand you have a mortgage to cover, but sometimes lowering the price of the rent gets people in and keeps them in and can be easier to manage than having your place empty for periods of time, or trying to manage the uncertaintly of tenants handing in their notice when you least expect it.

I assume the only way to get rid of it when it is in negative equity is to sell it for whatever price you can get and then treat the short fall as another debt - which I doubt any of us would want to do willingly!

If you place is big enough, do think about moving in yourself (if that's possible) and taking in a lodger. It has worked for me. Don't get me wrong; there are days I just want my own place back, but there's no denying the extra rent helps me out no end!

I hope you find a solution that works for you.

MrsTinks

I PNP was trying to give you some good advise... There are agencies that offer a "guranteed" let or if you get council tenants in it would be a pretty guaranteed payment from the council (ish) instead of private lets. I don't see where the judging comes into it to be honest...

redpete

ludevotie wrote: »

Thanks but i really don't think you should judge

Did I misunderstand something? They seemed quite reasonable suggestions.

zakrob

Hi,
We owe £130,000 on a Northern rock together mortgage
(£101.000 sercured and £29,000)the house has dropped in value to around £85,000 its a small 2 bed semi and we have child no 2 on the way (NOT THE SAME SEX EITHER!)as we cant sell we thought of Letting ours out and renting another bigger house, we have recently been making £600 overpayments on the mortage each month as my wife has returned to work after our 1st child, but it would take around 5years to get it to a level where we could sell and maybe have a small dep for a new house,,and theres no way we can stay in this house for that long! our disposable income would be able to cover both houses(mortgage and rent) if needed but not for ever!! top and bottom is we need a bigger house and can afford a bigger house/mortgage but were in negitive equity! is this an option??? many thanks
Zak.