Sell your house fast....

blue_monkey_2

Just to add. Are ou sure that the tenant is leaving? Have you served notice or did they they?

I only ask as we were asked to leave Mid November, served notice in December, court date for eviction date is April which may mean we do not have to leave until Mid June time. My LL cannot sell he house with us in it, we don't have to leave until a court orders us to. So beware of this if you served notice on your tenant, OK.

mrstinchcombe

neas wrote: »

She made a financial decision to invest in Buy to Let... Now she is getting burnt...

Alot of FTB have been pushed out of the market by inflated house prices... cause by Buy to Letters... Im sorry but as a FTB who can't even get on the market... Im finding it hard to have too much sympathy.

I do feel for people in sorry situations.. like if someone robbed me but then got robbed themselves... I wouldn't feel as bad for them. You know?

I suggest she sell asap as if a HPC happens.. and all economic indicators point towards this.. then you will loose 20-30% on the property price for sure.

Neas you have been a prize idiot on the other post about "living with your folks".

However I find it very hard to disagree with the above statements, spot on

neas

mrstinchcombe wrote: »

Neas you have been a prize idiot on the other post about "living with your folks".

However I find it very hard to disagree with the above statements, spot on

:money: I am to please .

neas

Smashing wrote: »

Read this forum for 2 weeks and you suddenly become an expert. I've lurked around here for a while and seen it plenty of times - you can tell the ones who are just regurgitating what they've heard previously as they often fail to take the particular circumstances of the poster asking into consideration when replying.

One-size property advice does not fit all. Give a definite answer and you'll get 3 or 4 exceptions to the rule spouting about their experience. Usually preceded with a 'don't listen to him/her...'
The more they get away with it, the more the comments become more inclined towards...'what do you know/how many houses have you bought?' style personal attacks.

Happy posting!

Delusions of grandeur anyone... Just because you have posted after 2 weeks doesn't mean you have read the forum for 2 weeks. Interesting how I'm being berated about lack of knowledge from the star team .

Not all about post counts you know.

owitemisermusa

Aw shucks! I thought I had the record for the most posts by a newbie - you've got more than me Neas!

:rotfl:

neas

Yea .

And what annoys these other guys i guess I've been thanked quite alot in that short time lol :P.

But Post count on an online forum doesn't mean poop, no direct link to knowledge at all, really we are all amateurs on here.

payingfornowt

Thanks for your opinions everyone.

The question was a non specific one, and all answers no matter how informed are welcome.

There is not right or wrong answer, if she sells she takes a loss. But could she ride it out and turn a profit or break even? Or will the house prices crash and she will lose big? Nobody really knows, it is interesting to hear other people’s opinions so I can get my house in order (excuse the pun) before advising her. As I said I am advising her that is all.

The current tenant has been served eviction notice, should be out in 4 weeks. 80% Of the rent was direct from the DSS and the tenant has not been forthcoming with the other 20% owing about £3k. I think she should offer to waive this for the tenants full co-operation in the sale of the house, the chances of her getting the £3k are slim anyway.

The mortgage was 100% and it is more than the rental income, the gamble was that the house price would rise with renovation work and the housing market growth. She did not take into account maintenance, repairs, bad tenants and the housing market stalling.

Another quick question, if she sells now without a profit even a slight loss, will the taxman come sniffing?

I know it was a very poor investment but I don’t want to see her paying for it for the rest of her life.

pinkshoes

payingfornowt wrote: »

Another quick question, if she sells now without a profit even a slight loss, will the taxman come sniffing?

I know it was a very poor investment but I don’t want to see her paying for it for the rest of her life.

I'm not sure how capital gains tax works, but because she hasn't lived in the property, she'd have to pay it... although if she's making a loss, surely there won't be any GAINs tax to pay????

To ride out the downturn in the market, you'd probably have to stay in it for a few years. My folks bought at the peak in the late 80s, and the market crashed, but 20 years on it's now worth over 4 times what they paid for it 20 years ago... but they bought a home, not an investment.

Is the house big enough to be suitable for the next 5 - 10 years? If you're living in it, then you and your girlfriend can make a good effort to pay off the equity over the coming years, and then sell it later down the line if you need a bigger family home. I know this restricts you to staying in the area, but then if you want to stay round there, and the house is big enough, then this could be a feasible option.

blue_monkey_2

Hi again,

Just read your response and I wanted to give you 'word of warning' if I am honest. People on HB are unable to rent anywhere these days, if your tenant goes to the council they will tell them to stay put as I explained. Your tenant does NOT have to to tell you this but just refuses to leave, you can only MAKE them leave b he corts. I know it sounds stupid but please do not think that this might be over in 3 weeks - until your tenant has left and are sure they have gone.

From my own experience I would never BTL or even let my house now, I can see how the law is totally on the sire of the tenant and the tenant can refuse to pay and it can still take MONTHS to get them out and in all that time not pay the rent.

I am sorry to worry you but your GF needs to be prepared for this just in case. It could well be that your tenant has somewhere to go BUT the council will tell them to stay and not move out and there is nothing your GF can do. If she is not going to claim through the court for the backdated rent arrears and the tenant knows this then they will be entitled to a council housing and the council will tell them to stay. Can you see where this is going..... By writing off the rent you are giving your tenant the 'right' to be housed by the council if they do not have a job but the council will tell them to leave when a court evicts them. It's a hard call, she really needs to have a think about this and get some more advice. I am not sure if it is too late to serve section 8 which would mean she is applying to the courts to get the rent back. I so would not want to be in your girlfriends shoes right now. Sorry. I thought it best you understand just what the implications are in all of this.

She could by all means sell the house with the tenant in it but as the tenant owes 3k in rent I am sure it would not get a good enough price to cover the cost of the house as they are taking on someone they know is not going t pay. I take it the tenant has been paying the other bills such as electric and Council Tax, OK. Something else she might want to consider. Sorry (again).

blue_monkey_2

Where is your gf living? Could she not sell that place and live with you until she gets the tenant out? Seems the most sensible option, so that she is only paying for one property and not 2.