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Rental property sale fell through twice

Hello MSE community,

I'm grappling with some challenges after the sale of my rental property fell through twice—the first time it didn't go ahead, and the second buyer tried to reduce the price just before exchange. I'm now pondering how to deal with my mortgage company under these circumstances. The flat has just gone back on the market but considering how close we are to Christmas I am not holding my breath to secure a buyer anytime soon. 

The issue is compounded by the fact that the rental income barely covers the mortgage, which is at a high interest rate and I'm taxed on income that is virtually non-existent after accounting for mortgage payments so reletting it is not an option for me. 

Additionally, my mortgage company has indicated that I'm ineligible for a mortgage holiday since the flat is unoccupied. Does anyone have experience or advice on how to secure a mortgage holiday in this situation?

I would greatly appreciate any advice on these matters, including how to protect oneself from such setbacks in future sales.

Thanks in advance for your guidance!

Comments

  • Hoenir
    Hoenir Posts: 1,255
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    An honest and frank discussion with your lender is your only option. Keep them informed. You are at their mercy unfortunately as will be in breach of your mortgage contract.   The unpaid interest and charges levied will obviously mount up and eat into the equity you have in the property. Until such time as it is sold. 

    As for the future. Have a reserve to tide you over. For both void rental periods and the period leading up to the disposal of the property while it's vacant. Surprising how often people overlook the exit period. That hard earned profit can soon disappear. 
  • Did the second buyer low-ball you at the last moment?

    As it stands it's costing you money and any capital remaining after the sale isn't benefiting you.

    Has the buyer carried out surveys and so on? If so, they have shown some commitment to the purchase.

    Is there no chance of a compromise?

  • GDB2222
    GDB2222 Posts: 24,334
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    Stick it in an auction. 
    No reliance should be placed on the above! Absolutely none, do you hear?
  • gwynlas
    gwynlas Posts: 1,622
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    Ask your provider if you can go interest only until sale otherwise there is no chance of a holiday as such. Is there the possibility of you letting it as a airbnb short term?. Depending on the size you should be able to furnish it fairly cheaply which might be worth the investment and if freshly decorated and furnished it will look more appealing to potential purchasers. Ex rental properties can often look stale and unloved
  • Drop price
  • Olinda99
    Olinda99 Posts: 1,193
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    you can pretty much guarantee that there will be a drop in price offered by your buyer just prior to exchange of contracts

    there is a lot of it going on


  • RHemmings
    RHemmings Posts: 3,191
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    Olinda99 said:
    you can pretty much guarantee that there will be a drop in price offered by your buyer just prior to exchange of contracts

    there is a lot of it going on


    I am not going to be doing that. So, not guaranteed for all.
  • MultiFuelBurner
    MultiFuelBurner Posts: 2,791
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    edited 25 November 2023 at 6:40PM
    Olinda99 said:
    you can pretty much guarantee that there will be a drop in price offered by your buyer just prior to exchange of contracts

    there is a lot of it going on


    Remember use in your opinion unless there is fact or evidence to back it up.

    We of course only normally see the worse things about buying, selling and renting here so it's not a broader view.
    "I can lead you to the money saving well but cannot make you drink from it"

    As mum always said "don't respond to imbeciles just ignore them" wise words mum 
  • Sistergold
    Sistergold Posts: 2,006
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    Sell at auction with a reservation price. 
    Initial mortgage bal £487.5k, current £266.8k, target £243,750(halfway!)
    Mortgage start date first week of July 2019,
    Mortgage term 23yrs(end of June 2042🙇🏽♀️), 
    Target is to pay it off in 10years(by 2030🥳). 
    MFW#10 (2022/23 mfw#34)(2021 mfw#47)(2020 mfw#136)
    £12K in 2021 #54 (in 2020 #148)
    MFiT-T6#27
    To save £100K in 48months start 01/07/2020 Achieved 30/05/2023 👯♀️
    Am a single mom of 4. 
    Do not wait to buy a property, Buy a property and wait. 🤓
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