Help! My buy-to-let portfolio is being repossessed!!

Jimthefixer

I have an average size portfolio of 10-15 properties, have been in positive cash flow for a while now but have had problems with tenants/council tax etc. and so have missed a few payments. Need help with dealing/negotiating with banks as they are a fortnight away from appointing LPA receivers!

Can anyone help??!! What are the legal safeguards for landlords when the banks are aggresively chasing mortgage arrears?

Thrugelmir

Jimthefixer wrote: »

What are the legal safeguards for landlords when the banks are aggresively chasing mortgage arrears?

You are operating in the commercial world. Nothing aggressive in banks chasing what is contractually due to them. You would do the same to your tenants.

If you were operating a positive cashflow then the money should have been set aside for a rainy day. As you are now experiencing when leveraging with debt the house of cards can quickly come crashing down when the wind blows.

Realistically you should be looking at contracting the size of your portfolio and putting it on a firmer financial footing. Possibly too late now by the sounds of it. As matters should have been addressed previously.

Tillytwopaws

Are all your mortgages with the same lender? Either way you should be cooperating and scraping every penny together that you can. LPAs should be avoided because in the cases that I've dealt with your costs can increase dramatically. Anything that needs doing to the house will be done and billed to your account. The LPA can also decide to sell without notifying you and only the LPA can decide to hand the property back to you. The lender will effectively be out of the equation.

GMS

How much do you owe on the mortgages in total?


How much are the properties worth in total?

HOMESWEETHOME

If it was me dump the problem properties, pull some capital and hopefully get you back on the straight and narrow again. Good luck

ChumpusRex

Jimthefixer wrote: »

What are the legal safeguards for landlords when the banks are aggresively chasing mortgage arrears?

The safeguards are in the mortgage contract document.

If it says that you will make regular payments, and that if you fail to do so, that the mortgagee may appoint an LPA receiver - then that is what they can do.

It sounds like most avenues to defuse the situation have been passed by, because of your delay in dealing with it. However, if you have the option to avoid an LPA receiver, because the appointment will be very expensive for you, you should think very hard about taking whatever options you have. You will need to negotiate with the lender about what it will take to stop the receivers, and if they will do so.

It may be an option to sell the properties which are most "troublesome", or if you have multiple lenders, sell the properties with the most equity.

Just be aware that some lenders have a "right to consolidate" in their mortgage contracts, if you have more than 1 mortgage with them. Effectively, this means if you have 5 properties with them, they can block an attempt to sell or remortgage just one property, and they can insist that the whole portfolio is sold/remortgaged as a job lot.

ethank

If you've been in positive cashflow but have built up arrears - it is obvious that you are not taking enough to service your debt. Please seek some professional advice from an organisation like Step Change.

Dan:_4

Bantex wrote: »

Sounds like there may be a few cheap houses coming onto the market. Sounds good to me.

It will still be too expensive for you to afford mate. Happy renting.

kwmlondon

Jimthefixer wrote: »

I have an average size portfolio of 10-15 properties, have been in positive cash flow for a while now but have had problems with tenants/council tax etc. and so have missed a few payments. Need help with dealing/negotiating with banks as they are a fortnight away from appointing LPA receivers!

Can anyone help??!! What are the legal safeguards for landlords when the banks are aggresively chasing mortgage arrears?

10-15 properties? You own an indeterminate number of flats, maybe a dozen, perhaps a few more or less....

https://www.youtube.com/watch?v=XqdqyvcJtig

Jimthefixer

Hi all,

Really appreciate all the advice about what to do. I am not really a property expert, but have gone out to the Citizen Advice Bureay, Bankruptcy experts, Mortgage brokers, accountancy firms and my solicitors and none of them have really come back with any clarity, it seems like your comments give me a bit more to go with. thanks, I am contacting another company today that claim to bring but to let, repossession, LPA receivership and turnaround portfolio all into one pot and can also advise on how to write-off debt! wish me luck.... Any other concrete solutions will be appreciated.... I will post back once I have met with them... they also seem to specialise in getting compensation if you have lost your properties.... will keep you posted...

GMS

You didn't answer the question of the value of properties and mortgages.


Don't go paying fees to any of these clowns who claim to be able to write off debt, get compensation etc.


You are operating in a non regulated commercial area.


Why do you think you should be compensated for not being able to maintain the commercial agreement you agreed to?


Don't mean to be harsh but you cannot expect to find an easy way out of this.


Start with giving details of values and you may get some guidance. LPA receivers are ruthless and will quickly erode any equity.