Could Buy To Let Turn Our Fortunes Around

bon_3

Went to money extra .com via telephone and ultimately received this e-mail:
Hi Craig,



I’ve done all I can to try and find someone that would be able to accept your application. Unfortunately, despite us dealing with the whole of the market, we are not a specialist broker (as in, one that deals with specialist cases) and I think you may need to go to a specialist to deal with this. I would also suggest speaking to your own bank to see if they can do it as they know you as a customer already and are likely to be more flexible in what they can do.



I’m incredibly sorry to not be able to help and I really hope you are able to find something.



Kind regards,

PS I will look at singing pig thing but I am slow at negotiating my way through web sites. Thanks

bon_3

I made no glib assumptions etc. etc. Why would you think this quote was pertinent etc.etc,

PROFESSIONAL_LANDLORD

I'm worn out, at the end of my tether
.

Sorry! you had to make that statement


Could you not rent out your bungalow meantime, to help with your borrowings , also speak to your solicitor about splitting the land, he might also have a few contacts.

RHemmings

It seems that you were deep in debt, and tried to borrow your way out of it. But unlike many who do that, you have now split your property and have two, and can feasibly live in just one of them. Renting out the property as suggested by Professional Landlord may be one solution as that would give you an additional income stream. But that might or might not be an unreliable income stream if you have voids or, even worse, a tenant who stops paying and takes time to evict.

Your financial situation looks so complex, with "high rate loans", that if I were you I would sell one of the properties quickly, and live in the other. Particularly if that would give you enough cash to clear, or nearly clear, the debts you have. Note however that I'm just a "random person" rather than a financial advisor or otherwise skilled and knowledgeable person.

But the title of your post includes the words "can't sell". Why can't you sell? If it's a matter of finding a buyer you might try an auction. If it's legal reasons, someone mentioned splitting the land, then that would be a different kettle of fish.

Though thinking about this, I think you need proper advice from a real financial advisor. But then maybe their fees will add to your debt and of course you could get a useless one who makes matters worse.

bon_3

solicitor (turns out non-solicitor working for solicitor) suggested splitting land now rather than at the point of sale for mortgage purposes but she assumed that halifax would want to put a legal charge on new build. However Halifax did not put a legal charge in first place. However other secured loan company did put a legal charge and this is registered on both properties. Halifax were bad enough in this case but the other unsecured loan company,:eek:. I would think that splitting the land would require permission from halifax. I would also think that the other unsecured loan company might still keep its charge on both builds whether or not we split the land. Renting it out would just reduce our income elswhere. Tax credits etc. and offcourse you need to find a tenant. We are (with my limited understanding) not in a strong enough financial position to join the renting game;but I could be wrong.

RHemmings

What a complex situation. I think this is way beyond the kind of question you can ask on general advice sites of this type.

The only thing I can say, for what it's worth, is that you might want to consider selling both properties as a pair. That might allow you to pay off all loans/mortgages secured on the property. A developer may wish to buy the pair of properties, and once the mortgage/loan/security problems are solved, sell them off individually. However, a developer who did this would be looking to make a profit, so you're extremely unlikely to receive full combined market value.

Is it not possible to refinance both properties individually, assuming a split of the land? However, for many mortgage companies, there may be a chicken and egg problem in that they may not want to lend until the land is split, but you can't split until you refinance. Is that the situation? This is where "bridging finance" may come in. Maybe. I dunno.

bon_3

I think I have an idea but is it viable.
I know nothing about buy to let mortgages so this idea is based on certain assumptions:
PROPERTY A is original property
PROPERTY B is new build
PROPERTY C Is a flat that I do not own
1) I find PROPERTY C
2) I arrange buy to let mortgage for PROPERTY C at sale of PROPERTY A
3) Proceeds from sale of PROPERTY A pay of all debts except £58,000 mortgage.
4) £58,000 is paid for with buy to let mortgage.
5) Sale of PROPERTY A leaves renainder £18,000. This serves as deposit on buy to let mortgage.
6)We move in to PROPERTY B
7) Shouldn't have to pay capital gains tax?
8) Still have only one mortgage as debt?
PLEASE CONSIDER THIS IDEA AND IMPART ANY WISDOM YOU HAVE ON FLEXIBILITY IF APPROACHING BUY TO LET MORTGAGE, CAPITAL GAINS ETC.

RHemmings

You don't mention what happens to property B. If you can sell property A, why don't you just move into property B, with as many debts cleared as possible? If you then decide to buy property C, you can do so at your leisure. Why would coordinating the sale of property A and the purchase of property C make things easier or better? Why can't you move into property B? I presume it's the CGT situation, but can't understand what it might be.

Also, it's hard enough to follow what's going on here without the title of the thread changing so often.

bon_3

sorry I have changed text I meant to put that we would move into property B. Can't, because of what I wrote earlier. Thats why I wondered about introducing a PROPERTY C. Sorry if I am jumbling things up.

firesidemaid

have you thought about going to CAB - hopefully they could find someone who can help you with all you need.