Negative equity problems

Rosemary7391

OP, why not have a look at the bankruptcy board to see what the process is like and what would happen if it came to it for either you or your ex.


I'd try and work out a vaguely sane way to proceed and get this agreed with your ex in writing. Then you at least have a standard to (try) to hold him to. A backup plan relying only on your own resources would also give you some peace of mind. If you post some figures folks here might be able to help with that.

Teamocil

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.

.

Yet you bought three houses you didn't need and expected others to pay the mortgages for you.

Not seeing a single mention of the tenants in this thread. How odd.

LatinDancer

Teamocil the tenants are all happy and well looked after I can assure you. And 10 yrs ago my life was centred around going out to work and raising my children, my ex was the business man and he made those decisions. I trusted him, with hindsight it was foolish and he made mistakes.

The financial climate was very different then mortgages were given away at ridiculous rates and my ex Husband became greedy as many did, so aiding the financial disaster which took the world markets by storm.

I did not make a decision to buy these properties my ex did, and at the time I trusted that he knew what he was doing. I was busy doing what I did with very little spare time, and no desire to talk business.

Yes I was foolish too, many people were.

LatinDancer

Thank you for all your replies. I've read them all and I know I need to make some decisions.

I don't think I need any more input thank you so will leave now and say goodnight.

BlackBird75

Teamocil wrote: »

Yet you bought three houses you didn't need and expected others to pay the mortgages for you.

Not seeing a single mention of the tenants in this thread. How odd.

It's a good point, but there are two ways to look at it:

1. She stopped three FTBs buying at the top of the market and potentially ending up in negative equity. Those FTBs dodged a bullet.
2. Those FTBs would have been more likely to be repaying the capital and would see the houses more as homes than investments. As a regular home owner, it doesn't really matter if your home value drops, because the next house you want to buy has also dropped in price.

The real problem here is the government encouraging debt, especially by making it tax deductible for BTL landlords, but not for home owners. Switching the tax relief from MIRAS to BTL was a deliberate government policy to encourage BTL.

Crashy_Time

Comms69 wrote: »

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

Unlikely IMO.

Bass_9

BlackBird75 wrote: »

I remember being offered a BTL mortgage by my bank back in 2005-6.
I hadn't even expressed any interest in becoming a landlord. I'd gone in for something else.

I told the bank staff member, that I was a bit concerned about taking on a debt and hoping someone else (the tenant) would pay it off for me. The bank guy looked quite surprised, as if no one had ever put it in such terms before.

Could this be a case of mis selling???

Did you purchase the mortgage? If not then no...

cashbackproblems

most people have known for the last 10 years what a bad idea BTL is but you were dumb enough to take the risk 3 times lol! Losing your house is your fault, society doesnt owe you your own house.

BlackBird75

Bass_9 wrote: »

Did you purchase the mortgage? If not then no...

I meant that if a similar approach was used with the OP, then maybe hers was a mis sell.

No, I didn't take the mortgage. I already had a house.

BlackBird75

cashbackproblems wrote: »

most people have known for the last 10 years what a bad idea BTL is but you were dumb enough to take the risk 3 times lol! Losing your house is your fault, society doesnt owe you your own house.

Unfortunately, if the BTL houses are repossessed, the tenants may lose their homes.
Unless a new landlord buys them and agrees to keep the tenants on.

Unfortunately, the government does nothing to encourage this and is happy to see tenants evicted, so the properties can be sold as "vacant possession".