Forced into unaffordable buy to let : HELP NEEDED

DominicJ_2

A 2.6% gross yield is the root cause of your problem.

Yep
4.5% yield is more normal round my way, which is what your bank seems to be expecting.

See if they will delay, and get it sold.
If its really worth £550k, it'll fly off the market for £450k

somethingcorporate

Where can you rent a £500k house for £1100 pm?

Our £200k flat rents for that in the South East.

brit1234

Sell now for about £400k, prices are going to fall further from this point so don't chase the market down and get repossessed

Good luck, save that equity while you still can.

Brock_and_Roll

When the OP said it wouldn't sell at auction, I guess what they meant was that it did not reach the reserve.

Of course it would sell at auction - if the open market value is anywhere near £500k, it would fly at £400k.

Alternatively, if a property of that type and in that area only rents for £1,095 per month, assuming a 5% desired year, this would equate to "market value" of £263,000 !!

Something's not right here......

shop-to-drop

Is it let to friends or family? Why is rent so low on such a high value property?

pinkteapot

Try again at auction with a lower reserve...

As others have said, the market value is likely much lower than you think with it only getting that rental value. Our house is worth about £230k and would rent for £800-900 a month.

Which year was Halifax's £500,000 valuation done?