Decleration of Trust Between Me And My Landlord - Help!

PasturesNew

He isn't trying to sell his house, he's trying to sell his debt. It won't happen.

Don't buy the house, keep an eye on other properties to rent, keep your money in your wallet and move if you can, otherwise just sit it out as it won't sell to anybody at the higher price so are unlikely to be asked to move.

clutton_2

you will only be allowed to borrow 90% of what the Lender's valuer thinks it is worth.... not what you or the vendor think it is worth..... you may not have to find £28k after all....... However, if you have to borrow the deposit the bank will want to know that also and may refuse you a loan...... they are never going to go back to 100% borrowed money ever again

G_M

Danjames90 wrote: »

If the LL defaults will the bank kick me out? Will they not offer it to me at a knocked down rate?

They will offer it to whoever offers the most on the open market. They have a legal duty to get the max possible. You may get it, you may not, but the fact that you live there as a tenant will make no difference.

<sebb>

God I hate moving as much as the next man, but for £30K (which is at least how much you'd be over paying) I'd personally hand move my stuff in a tesco trolly 20 miles away!

I know it doesn't seem like much money when it's a just a bit extra on the mortgage but in the lifetime of the loan, that's actually cost you more like £60k! Just think what you could do with that kind of money!

In any case, as others have pointed out, you are unlikely to get a mortgage for that amount as the bank will most certainly NOT value it at the asking price.

Danjames90

Update on this, please can someone help!!!. If there is a property expert here please get in touch, I will pay for your services.....

This is the response from my landlord.

"Hi Dan that's fine I understand. We can't afford to pay for it either, with our £700 a month loss, so the best thing I expect is for you to look for another house to rent as quickly as possible. We will just let the bank have it back and pay them whatever we owe them on its repossesion, as it will be much less than £700 that I will need to pay them back. I am sorry it has not worked out for us, but I honestly can't sub the mortgage payment any longer - I am honestly struggling to pay my own rent. I really wanted you to have the house which is the only reason I did not let the bank have it back before now. So please will you try and find somewhere asap and I will cancel the mortgage direct debit from april onwards. You will have plenty of time to move out so I hope you don't worry too much. The bank will not get involved for a few months."

What should my next move be?

Please help.....

kazwookie

Start looking for a new place to rent.

or

Moved back into your place that you rent out.

Either way I think you are goingto need tomove and fairly soon.

Did you give the LL a deposit?

Good luck.

RAS

Do nothing.

It will be MONTHS, possibly a year before the house is repossessed.

Just sit tight for now, until you get notice of the reposession hearing.

And you never know, if you get together a deposit, you may be able to buy it.

Wicked_witch

It doesn't seem like the landlord is making a very sensible decision. Won't the bank sell the reposessed property for whatever they can get- so possibly far less than even £250K? He could end up owing far more than if he just sold for that price.

This is just a query, I am NOT suggesting OP should buy the house, whatever the cost.

Grogged

Wicked_witch wrote: »

It doesn't seem like the landlord is making a very sensible decision. Won't the bank sell the reposessed property for whatever they can get- so possibly far less than even £250K? He could end up owing far more than if he just sold for that price.

This is just a query, I am NOT suggesting OP should buy the house, whatever the cost.

I presume that if the LL is willing to default on their mortgage, then they're not in a position to raise the funds to allow them to sell and cover the negative equity...

Unfortunately it looks like the LL is preparing for being under an IVA/bankruptcy order.

G_M

At least the LL is being honest and communicative with you. The tenants I feel sorry for are the ones who know nothing of repossession proccesses till the bank comes knocking on their door!

You'll have to move sometime so start looking. Don't hurry - as said above it will take time, but as soon as a decenet alternative property comes along, move.

And make sure your deposit is in a registered scheme. Bankrupt landlords are not easy to get deposits out of!