Rental property sale fell through twice

Notionowl

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!

Hoenir

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. 

Tucosalamanca

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

Stick it in an auction. 

gwynlas

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

theartfullodger

Drop price

Olinda99

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

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

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.

Sistergold

Sell at auction with a reservation price.