Negative equity problems

BlackBird75

This is a good example of why it's not a good idea to go into business with your spouse.
Instead of getting in debt to become landlords, the OP and her ex husband could have put money into their pensions or ISAs individually, without all this trouble for everyone.

Having said that, I blame the government for encouraging this nonsense.

Teamocil

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.

More greedy than dumb.

BlackBird75

Teamocil wrote: »

More greedy than dumb.

Given the tax treatment of BTL v SIPPS, I'd say dumb today.
But back when these houses were purchased, the government was encouraging BTL.

Crashy_Time

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.

The general public you mean?..no chance. the penny will be starting to drop for a few now though.

Comms69

Crashy_Time wrote: »

Unlikely IMO.

That’s why it’s a worst case scenario...

But less unlikely then you think. Especially in smaller communities with one or two large employers.

Look at towns like Barrow in Furness. You’d struggle to find someone who isn’t linked to the shipyard either working there themselves or a close relative.

Ozzuk

OP, you've avoided answering the tax question, so we can only assume neither of you are paying it. I'd also look to sort this out - your liabilities are not just the negative equity but also backdated tax on three properties - that could be a huge number, easily 30-50k (3x100(est tax)x12x10).

Was it 25 year mortgage? If your husband wasn't such a risk then it might be worth sitting out till mortgage paid off (if you can sort the tax out), but it sounds like you need to be more proactive as this could collapse at any time. If the position is that bad maybe you need to look at IVA or bankrupcy yourself and get a fresh start.

Also if 3 properties have been rented for 10 years, again an assumption but have you been updating them? In the next 10 years you could be facing big bills - boilers, roof repairs, kitchens, electrics etc. Time to really think is this worth hanging onto - a huge loss now or bigger loss in the future.

Good luck OP.

Crashy_Time

Comms69 wrote: »

That’s why it’s a worst case scenario...

But less unlikely then you think. Especially in smaller communities with one or two large employers.

Look at towns like Barrow in Furness. You’d struggle to find someone who isn’t linked to the shipyard either working there themselves or a close relative.

Very true, good point, smart BTL will be geographically/economic reliance diversified though...won`t they? :eek:

BlackBird75

Crashy_Time wrote: »

Very true, good point, smart BTL will be geographically/economic reliance diversified though...won`t they? :eek:

I think the smart thing, for most people, would be to avoid BTL completely.

Look at landlord and tenancy laws going back over the last 100 years, in the UK.
Look at the landlord and tenancy laws in other countries.
You will see that being a BTL landlord is not that well established as an investment strategy.

Compared to bonds and equities, it's quite a recent thing.

Crashy_Time

BlackBird75 wrote: »

I think the smart thing, for most people, would be to avoid BTL completely.

Look at landlord and tenancy laws going back over the last 100 years, in the UK.
Look at the landlord and tenancy laws in other countries.
You will see that being a BTL landlord is not that well established as an investment strategy.

Compared to bonds and equities, it's quite a recent thing.

Very true, I think for most people the strategy, if you could even call it that, relied on ever increasing house prices.