BR Advice BTL Married

Lee14

Hi

New to the forum and been reading all night and wow what a forum !

Anyway I am looking for some advice please.

In short I am married and have a large BTL portfolio which is ok at the moment.

When / if interest rates go up things could change and I have been off work stressing about it.

Most of the portfolio is in my name and 4 are in my wife's name. We are selling 1 which is in her name which will release some funds. This is in her name only. The rents and mortgage were all taken out of a joint account though which was used for all the properties.

If the money from the sale goes into her own account because it is only in her name, and should things decline if I go BR would the money in her account be effected in anyway ?

Any help really appreciated.

longtermplanner

It should be all right. She is not liable for your debts, even though you are married.

However, I would suggest that you two should start to operate different accounts for your BTL businesses, just to clarify the situation.

You say the situation is "ok at the moment", but I am guessing it's not great or you wouldn't be so stressed about rates going up. Which they will, it more a question of "when" rather than "whether". IMO you should consider selling some of the less profitable properties now, rather than wait for rates to go up, when a lot of other BTLs may be coming onto the market and you won't get such a good price.

debtinfo

the question i would ask is why? why are most in your name and 4 in her name.Has that always been the case? why manage it like that rather than having all the properties in joint names. on the rental agreements is it just you or her as the landlord or both your names. do you have a business name which you market the properties under?

Lee14

Hi

Thanks so much for your replies.

I have woke up not great today and on anti depressants so i will do my best to answer.

Ok the majority are in my name with the mortgage companies and only 4 in my wife's name. I am not 100% sure who's name is on the AST's , it could be mine because we use a letting agent.

That is just the way we did , we never looked at doing joint BTL's at the time.

The one we are selling is not one with the letting agent, that is in my wifes name with the lender and my wifes name was on the AST.

That is the only 1 with any equity in it and the portfolio is approx 3 million

I think it has hit me i have to face it rates will go up and we have 2 girls age 7 and i just need to plan ahead to what is probably coming.

The properties are covering themselves at the moment and have room for maximum 3 a quarter percent rises, then it will struggle.

2 of the properties are boarded up and need a lot of work which we just can't afford.

I own a LTD company with me and my wife aside from the properties and just work from home but i am off at the moment with stress.

We have about 20k equity in our PPR which is in my name only.

I will tell you the thoughts i am looking at to try to ensure my family is ok, it probably can't be done but i need to start to plan and make changes.

The one we are selling could release about 20k, this would be put into my wifes own account because again that property is in her own name. This would give us a bit of money but i am concerned if i went BR they would take this.

We could sell our home and start to rent locally, the money released would give me some time to get well because i can't work so stressed out.

I know going BR effects being a director but i am not sure if i could step down and my wife become the director which i could then work for her, again these are just thoughts.

Thanks again for your help

Bantex_2

Why not just sell off the lot?

Lee14

Hi

Because i estimate about 300k shortfall in negative equity possibly more then fees, CGT etc

wharty

Could you not put the rents up on some of the properties?

Bantex_2

Lee14 wrote: »

Hi

Because i estimate about 300k shortfall in negative equity possibly more then fees, CGT etc

So prices have dropped by more than 10% since you bought. Where are you?

If they values have dropped there would not be any CGT.

Lee14

Hi

We purchased them around 2007/2008 and prices really crashed. Stupidly we were really highly geared then and the areas in Yorkshire are not too great.

We are maxed on the rents really, if we put them up they would move to another house, a lot are covered by benefits where tenants can't afford top up increases.

Thanks

ladeeda

wharty wrote: »

Could you not put the rents up on some of the properties?

Yeah coz this is all the fault of the tenants and they should pay.

Have the boarded up properties got mortgages on them? If so, does the lender know the condition of the properties? They could be repossessed as you have broken the T&C's of the mortgage contract.
How many mortgages are with the same lender?

Check the AST's for your wives properties as any AST's I have seen would be void if the AST is in a different name to the property ownership name.

Complicated situation that you will need legal advice for.

Lee14

Hi

No the lender does not know about the 2 boarded up. There are 16 with 1 lender MX.

Thanks all so much for your help