distressed sale

sammy66

could anyone please tell me what a distressed sale is. i am thinking of transfering equity of my buy to let property to partners name (long story) he can then get a buy to let mtg on it in his sole name, thanks.
the other alternative is i am in a fixed mort with platform, could i come out of it, pay the ERP and then remortgage with them in both my name and my partner for a better deal and rate, its in my sole name at mo, i hve a default of £6k dated back to 2008 and its stopping me getting a remort with a prime lender, thanks

bris

A distressed sale is when you need to sell assets and property in a hurry, even if it means a loss, this is to cover immediate needs or debts. Does this apply to you?
The BTL idea may not work because the lenders now want to see hard cash, using equity, although can be done, will be expensive and the interest rate will be higher.

When you start looking at deals tied to ERP then the expense of this and fees for any new deals will easily offset any saving you might make, so do your homework before you jump in to what you think might be a good deal.

You should think of selling the BTL and using the equity for any debts you may have, transfering it to your partner may leave you in a vulnerable position if anything was to happen to your relationship now or in the future.

sammy66

Hi Bris, I want to free up some equity in the property, mtg is £88k prop worth £150k. Kensington have refused offer as we had to have a structural enginners report done, this came back as evidence of movement but longstanding, but because the valuer has not committed to putting he is happy no more movement happening, even tho SE has said this, they have declined, i spoke to valuer and he said he couldnt understand why they have declined, but this valuer is just passing the buck, which doesnt help me. the valuer even said to me he was 90% sure all ok but he wanted to get a SE report to cover his back