Buy to let help

Alfiemoon75

Hi my partner and I ended up with a buy to let mortgage (couldn't sell the property) which we have maintained interest only for 15 years waiting for the housing market to recover. the latest tenant has moved out and we want to sell this property but not sure what the best way to do this.
Do we sell for less than what is owed, and then pay the shortfall over a length of time. or do we hand the keys back. The house has been on the market from June with no rental income. We covered the mortgage for the first few months but we are no in a position that we cant make the payment. Therefore each month it is accumulating more debt.


Are the fees for voluntary reposition very high? How do they charge maintenance payments?


Really don't know what our best option is. Putting another tenant in will need some investment in the property and we feel that this has went on long enough.

kingstreet

You need to speak to the lender to investigate your options.

sal_III

You need to ask your lender about options and then make a decision.

I would advise against surrender, as it's almost guaranteed that the bank will spend more money than you on the sale of the property, which will only increase your debt.

I suspect this is NI, if so it might be challenging selling before the Brexit fallout has cleared. So you might need to bite the bullet and go with the renovation and keep renting out, even though it might seem like throwing good money after bad. It will also increase the chances of sale in the future, while reducing your potential debt from the negative equity.

Thrugelmir

sal_III wrote: »

I would advise against surrender, as it's almost guaranteed that the bank will spend more money than you on the sale of the property, which will only increase your debt.

A managed disposal will incur far less costs than a forced one. The non payment of the mortgage is simply going to compound the debt owed in any event. Also will incur lower lenders costs.

Thrugelmir

Alfiemoon75 wrote: »

Really don't know what our best option is. Putting another tenant in will need some investment in the property and we feel that this has went on long enough.

Do you own another property?

Alfiemoon75

Yes we have a mortgage on our family home. I have also been recently diagnosed with a chronic illness so not Sure how long I can work for. I just don’t want to have to deal with this in a few years. Need to bring it to an end and not sure what the best way to do that.

Alfiemoon75

Yes we have a mortgage on our family home. I have also been recently diagnosed with a chronic illness so not Sure how long I can work for. I just don’t want to have to deal with this in a few years. Need to bring it to an end and not sure what the best way to do that.

silvercar

Unsecured loan to cover the shortfall?

Could you increase the mortgage on your home to cover the shortfall on sale of the BTL? Less preferable to an unsecured loan for obvious reasons.