Negative equity problems

Comms69

LatinDancer wrote: »

Comma thanks I understand we each have 100% liability as joint owners, and now I understand tenants in common wouldn't change this.

We decided to keep the properties rather than sell when we divorced as we hoped the markets would improve ... As they have in some parts of UK but not in the North so much.

I'm in a mess then and there's no way out except hoping that does the honourable thing ... Which I doubt.

Why aren't you looking to sell? At the minute these properties literally are doing nothing. They increase your taxable income, but provide no actual income.


If your tenants leave, you have a massive expense which you clearly cant afford.


The market has had 10 years to grow and you're still in negative equity. You would literally make more money with a basic current account.

LatinDancer wrote: »

Can't afford to buy him out ... And I wouldn't want to either. I hate being a landlord ... And I never wanted to become one in the first place.

Selling now would mean paying off at least 80k in negative equity. It would break me and I'd be homeless.

Sorry if this all sounds abit harsh, but honestly this liability could cripple you. On top of all that you have to pay for repairs, ensure your comply with changing legislation, and pray to god your tenants pay their rent.


Take the worst case scenario, all three tenants stop paying. What do you do?

LatinDancer

Comms it would render me and my daughters homeless ... You say and??? Just another statistic then.

Owain_Moneysaver

LatinDancer wrote: »

Just to add ... I'm quite prepared to pay for my 50% of the liabilities

If these houses are run as a business then you'll be considered to be in a partnership and will be jointly and severally liable for all liabilities.

You really need to get your lettings business run on a proper business basis, such as putting the properties and their management into a limited company.

Comms69

LatinDancer wrote: »

Comms it would render me and my daughters homeless ... You say and??? Just another statistic then.

Yes, and?


...And what would you do?


Rent? Council housing? Remortgage? I don't know, but there are options.

Comms69

Owain_Moneysaver wrote: »

If these houses are run as a business then you'll be considered to be in a partnership and will be jointly and severally liable for all liabilities.

You really need to get your lettings business run on a proper business basis, such as putting the properties and their management into a limited company.

That is a terrible idea. These properties need to be sold!

LatinDancer

Thanks for your replies. I see have no options really.

And my impossible question of how I can protect the roof over my head? I see I can't.

I know life's not fair. I've known that for along time thanks.

LatinDancer

Why is a limited company a terrible idea? Can you explain please?

Rosemary7391

As you've got 3 properties, could you look to sell them one at a time to make the financial hit more manageable?

Comms69

LatinDancer wrote: »

Why is a limited company a terrible idea? Can you explain please?

Well you would be creating MORE links with your ex husband, which on the face of it you don't want.


But that said, your lender is not going to transfer your liability to a ltd company with no profit, no history of accounts and in essence no chance of being commercially viable.


now can you answer the question:


Take the worst case scenario, all three tenants stop paying. What do you do?


- BEcause that tells you everything you need to plan for, for the next 3 years

LatinDancer

Jump off a bridge

Run away to South America

Live on the streets