We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Property Portfolio

Options
Has anybody else had a similar situation.
On our property portfolio we now only owe £365,931.00 to the bank for loans taken out to buy properties. These properties are now worth £1,030,000.00 and that is the lowest valuations. We have asked them to release 1 property that is part of the portfolio as part of a divorce settlement. The bank have said that the "primary assessment is the debt serviceabillity" and they have to take into account the current rental less the costs and less the tax payable and that this needs to meet the loan payments if the bank of England base rate was to increase to 3,5%. This property is no longer rented as my wife has lived in it for 4years so no income would be lost if they released it. Also saying that our portfolio doesn't meet the banks policy and they require 100% of the net sale proceeds of any  property that they release the charge over. So basically they will only release the property in question if the market price of £240,000.00 is paid. I am now at a loss as to what to do, does anybody have any advice please.

Comments

  • Are you a business?
    Does the bank hold individual mortgages on the properties?
    Is this one loan account with all the mortgages on - do they have a debenture on your total assets?
  • Yes we are a business.
    Thet are not mortgages, they are multiple loans to buy properties but no loan is attached to any one individual property. The loans were set up 16yrs ago to be able to buy and sell property and make profit from the proceeds.
    There are several loans and no they do not have a debenture on the total assets.
    Thank you 
  • I suggest the small business boards then or even the mortgage one - they will have more expertise than me.
  • Thank you for you help 
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 11 August 2020 at 4:01PM
    Sell another property from the portfolio to reduce the lenders exposure and bring it back within prescribed limits. 
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.