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Hold on or Get out
8A113R
Posts: 1 Newbie
Hi All,
I would really appreciate some advice on my current situation:
I own a flat that I rent out due to having to relocate for work. I was one of the unfortunate people to take out a together mortgage with Northern Rock (now NRAM). I have £128k left on the mortgage and an unsecured loan of £28k. I have been given consent to let by NRAM and this runs out in October this year. I have recently put the flat on the market and have received an offer or £128k from an investor. The flat only has 67 years left on the lease and is valued at around £130k because of this. I am renting it out for £650 a month. If I sell and pay off the mortgage NRAM will put the interest on my unsecured loan up to a whopping 12%.
Are there any other possible options for me? I feel I should hold onto the property rather than be forced into a sale. The consent to let running out is the issue forcing the sale. Can I convert to a buy to let mortgage? Should I sell and just deal with the unsecured loan. Should I just continue to let the flat and hope that NRAM don't find out?
Any advice or helpful ideas would be well received. Many Thanks
I would really appreciate some advice on my current situation:
I own a flat that I rent out due to having to relocate for work. I was one of the unfortunate people to take out a together mortgage with Northern Rock (now NRAM). I have £128k left on the mortgage and an unsecured loan of £28k. I have been given consent to let by NRAM and this runs out in October this year. I have recently put the flat on the market and have received an offer or £128k from an investor. The flat only has 67 years left on the lease and is valued at around £130k because of this. I am renting it out for £650 a month. If I sell and pay off the mortgage NRAM will put the interest on my unsecured loan up to a whopping 12%.
Are there any other possible options for me? I feel I should hold onto the property rather than be forced into a sale. The consent to let running out is the issue forcing the sale. Can I convert to a buy to let mortgage? Should I sell and just deal with the unsecured loan. Should I just continue to let the flat and hope that NRAM don't find out?
Any advice or helpful ideas would be well received. Many Thanks
0
Comments
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Can I convert to a buy to let mortgage?
NRAM don't do BTL, so will direct you to look elsewhere. Leaving you with the unsecured loan increasing to 12%.Should I sell and just deal with the unsecured loan.
That should have been your strategy knowing that the 12% was possible.Should I just continue to let the flat and hope that NRAM don't find out?
You could ask them to extend the CTL. They may agree, they may refuse. Try emphasising that the current tenants are in situ and have rights. You can't just turf them out because NRAM won't consent.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
In all honesty if you don't tell them you have a tenant they won't know unless your in arrears and they start sending field agents to visit.
You'd probably be in breach of contract but they won't know unless you tell them.0 -
In all honesty if you don't tell them you have a tenant they won't know unless your in arrears and they start sending field agents to visit.
You'd probably be in breach of contract but they won't know unless you tell them.
I think given that the OP already has CTL they may have a fair idea that the property is being let.0 -
with the lease being down to 67 years you need to do something more than continuing to just rent it out as the cost to extend the lease will be shooting up each year now its under 70 years0
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