Selling My BTL

Confused_landord

I have decided maybe next year to sell one of my BTL, not because of the current climate but simply because i dont want some of my monies tied up in bricks and mortar when i could be enjoying my monies, for example nice holidays , nice car ect...however i wandered will i have to pay a fee to B&M if my mortgage product still has a few years to run on it and also how is it best to avoid Capital Gains Tax? Obviously i do have an accountant and i do have a Financial Advisor,,but i wandered if any of you guys could give me some good answers to be thinking about,,,,,thanx in advance

brit1234

It may save you money in the long run. Many buy to let investors will have to pay penalty charges this year as their properties slip into negative equity this year. Especially all those with high LTV and bought recently.

This will be the year of the BTL margin call payments and most investors have no idea about these payments hidden in the small print of their mortgage agreements.

neas

margin call payment?

BobProperty

neas wrote: »

margin call payment?

Ah yes, the margin call payments that some people think are in BTL mortgages but no one has actually produced proof that they exist. Yes, they can exist in commercial mortgages and when a discount period (if it ever existed in the first place) ends then the current value or rent of the property may be an issue if the borrower remortgages. Otherwise, and I have yet to see proof that BTL mortgages have margin calls written into them, they only exist in the wishful thinking in the minds of a few posters on some house price boards.

Trollfever

Margin Calls.

Property purchased say £100k and lender agrees to lend say 85% = £85k.

Property drops in value to say £80, but lender has only agreed 85% so maximum lending against this property now £80k x 85% = £68k.

Margin call = £85k - £68k = £17k.

dopester

Confused_landord wrote: »

I have decided maybe next year to sell one of my BTL, not because of the current climate but simply because i dont want some of my monies tied up in bricks and mortar when i could be enjoying my monies, for example nice holidays , nice car ect...

Welcome to the realisation that equity in your home is not real money until you've sold and banked it.

You won't be enjoying your "monies" until you've sold old chap - which is becoming harder every day - so good luck with that miladdo. :rotfl:

Let us know how much monies you manage to get out of your BTL.

SquatNow

Trollfever wrote: »

Margin Calls.

Property purchased say £100k and lender agrees to lend say 85% = £85k.

Property drops in value to say £80, but lender has only agreed 85% so maximum lending against this property now £80k x 85% = £68k.

Margin call = £85k - £68k = £17k.

The best bit is that all these BTL Fraggles think banks wont make margin call because "it's bad publicity".

Completely ignoring the fact the banks dont OWN most of the mortgages, they sold them on... as a result the banks dont have any choice as they are acting on behalf of the party they sold them too.

Confused_landord

I am in no rush to sell my BTL.its an excellent rental property, i bought it years ago (9yrs ago).. and it has lots of equity....Also i did say i was considering selling next year when maybe mortgages are easier to get when there are mortgages to get, that is, if the climate has changed then.Its one of a few BTL that i have,, i just wandered maybe i shud sell one and release some good money,,by the way i am a girlie,,not a laddo,,,,i was hoping on some pointers concerning the CGT.Also i think people are putting emphasis on that i need to sell it....I DONT...........i have just been thinking about selling one of my properties and for the moment , it is just a thought.

SquatNow

Confused_landord wrote: »

I am in no rush to sell my BTL.its an excellent rental property, i bought it years ago (9yrs ago).. and it has lots of equity....Also i did say i was considering selling next year when maybe mortgages are easier to get when there are mortgages to get, that is, if the climate has changed then.Its one of a few BTL that i have,, i just wandered maybe i shud sell one and release some good money,,by the way i am a girlie,,not a laddo,,,,i was hoping on some pointers concerning the CGT

What on earth makes you think mortgages will be easier to get?

If prices are still falling, mortgage will be nearly impossible to get.

If you plan to sell, you need to sell now, and at a discount.

brit1234

BobProperty wrote: »

Ah yes, the margin call payments that some people think are in BTL mortgages but no one has actually produced proof that they exist. Yes, they can exist in commercial mortgages and when a discount period (if it ever existed in the first place) ends then the current value or rent of the property may be an issue if the borrower remortgages. Otherwise, and I have yet to see proof that BTL mortgages have margin calls written into them, they only exist in the wishful thinking in the minds of a few posters on some house price boards.

Heres some proof of certain banks below. There was also an article in the Telegraph a few weeks ago showing the main buy to let providers have it written into their contracts.

http://www.housepricecrash.co.uk/forum/index.php?showtopic=76232

Confused_landord

To Squat now,,,no i dont know if mortgages will be easier to get then, what i should have said was when the current climate improves,whenever that may be..in the mean time i will just keep renting it,,,,no problem for me,,,