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Something to cheer the renters up

We have a buy to let, it has been a nightmare from start to finish, bought the house, had rent guarantee, agents got scum in who trashed the place and did a bunk in three months. Agent went back on rent guarantee, we had to completely redecorate, re carpet and de flea what was once a gorgeous house. Took agent to small claims, won but he disappeared.

Got a reputable agent, reduced rent so are topping up mortgage by £125 per month, have now been told by NR that all products have been removed, house is worth less now than when we bought it so stuck with NR on SVR, we are going to have to find an exta £420 per month to cover mortgage.

Have very good tenants and don't want to lose them, frightened to put rent up but they have been in just over a year. Don't know whether to attempt to sell with them in situ or wait for them to move out and then attempt to sell or just jump of a bridge.

This was not a greedy lets get rich scheme. We wanted to buy three houses, one for each of our children to enable them to get on the property ladder, idea being we could sell when they go to Uni and they could buy close to uni and rent out rooms to friends to cover mortgage.

Devastated is not the word, I cannot tell dh as he is on a really intense course and is worried enough about the situation. He thinks we are only going to have to top up by £95 on top of what we currently pay.
£2.00 Savers Club = £34.00 So Far

+ however may £2 coins I have saved in my Terramundi since 2000.

Terramundi weighs 8lb 5oz
«13456720

Comments

  • Turnbull2000
    Turnbull2000 Posts: 1,807 Forumite
    The can renters suffer too when a property investor is out of his/her depth. So no, it doesn't cheer them all up. Still, good luck in getting yourself sorted out.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • ruggedtoast
    ruggedtoast Posts: 9,819 Forumite
    Hearing this really doesnt cheer me up. Hope it works out for you, if you want to post details about the property, what you paid, what the mortgage is and what you get in rent then someone might be able to help out, hope so.
  • southernscouser
    southernscouser Posts: 33,745 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Hearing this really doesnt cheer me up.

    Me neither.

    We're not all egotistical @sses on this board. :)
  • kazd
    kazd Posts: 1,127 Forumite
    I know but I am at my wits end, don't want to put the rent up, new tennants are looking after the place and pay on time.

    Paid £174k mortgage £153k. Current mort payments £674, rent £625 (£550 after agents cut), New mortgage approx £974
    £2.00 Savers Club = £34.00 So Far

    + however may £2 coins I have saved in my Terramundi since 2000.

    Terramundi weighs 8lb 5oz
  • southernscouser
    southernscouser Posts: 33,745 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    I've got no experience here but is it possible to ditch the agents if you have long term decent tenants? :confused:
  • lil_me
    lil_me Posts: 13,186 Forumite
    10,000 Posts Combo Breaker
    If the tenants are good and been in over a year could you not stop going via the agent? That'll save you £75 a month, I'll be honest I say that because I find most letting agents useless. I think the chances of the tenants being willing to accept a rent increase of anything near what will help you is slim-zero unfortunately, my rent is the same and if my LL put the rent up by more than £25 I'd be handing my notice in as there is more property for less money where I am, but wish you all the best in finding a solution/selling/whatever you need to do.
    One day I might be more organised...........:confused:
    GC: £200
    Slinkies target 2018 - another 70lb off (half way to what the NHS says) so far 25lb
  • Bf109
    Bf109 Posts: 634 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    It isnt a greedy get rich scheme but you wanted to buy three houses?

    Nonetheless, doesnt cheer me up at all.
    [FONT=Arial, Helvetica, sans-serif]Rise like Lions after slumber
    In unvanquishable number -
    Shake your chains to earth like dew
    Which in sleep had fallen on you -
    Ye are many - they are few.
    [/FONT]
  • Oliveru
    Oliveru Posts: 63 Forumite
    I think you were incredibly naive to assume house prices would keep going up (you did didn't you?) or that rents would stay high. The UK property market was deliberately rigged into a huge boom by the corrupt government/ banks controlling supply and giving cheap credit and people like you make it even worse by buying multiple houses pushing up prices even more.

    Now when the housing market finally crashes it will take this whole country's economy with it- thats the kind of future you have left for your children and being a similar age (early 20s) to your child I am in a position to say that because I'm in the age group that will be affected worst.

    I know you had good intentions but you have inadvertently made things worse for your children and everyone else. You seem like a nice guy and I'm not trying to have a go or kick you when your down I'm just using your situation as an example to say my opinion of all people that have overstretched themselves whether it be BTL, first time buyer or moving up the ladder- they all raised the bar for everyone else who followed like sheep to the slaughter on the cheap credit and the result could be the biggest financial depression since the 1930's- So I think you have bigger things to worry about than your mortgage right now.

    Just as the other posters said, this doesn't cheer me up at all- It just scares the hell out of me as now I have a better idea about how bad this recession is going to get after seeing first hand how people have stretched themselves.
  • gallygirl
    gallygirl Posts: 17,240 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    What is the position on your own house? Do you have a mortgage on it? Do you have equity in it? Could you remortgage your own house at a better % rate & use this to reduce BTL mortgage? As long as you can show a clear paper trail (e.g. borrow 75k, pay 75k off BTL immediately) this should be ok with tax man.

    Alternatively, would own co allow you to extend the term on your own thereby reducing monthly payments and freeing up some cash.

    Consider part time work as a short term option. Although selling kids also has its' merits ;) .

    Also try DFW board. It is amazing how much cash you can rase when desperate. Ebay, car boot, quidco, mystery shopping. Post your SOA - and remember nothing is sacred.

    Get kids PT jobs & stop pocket money.

    Old Style Board for cooking & shopping hints. Gammon hock @ £1.39 instead of joint @ £7 etc.

    2 cars? - if you HAD to sell one how could you do it? Can you downgrade 1?

    Ditch Sky for Freeview (if kids moan tell them you'll have trouble getting good Sky reception when you're propping up dish in a gutter - worked for me :o ).

    None of this may account for much, but it all adds up. Not a good position to be in but good luck.
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    :) Mortgage Balance = £0 :)
    "Do what others won't early in life so you can do what others can't later in life"
  • ziknik
    ziknik Posts: 248 Forumite
    You should have seen this coming months ago (if not years ago) and the fact that you didn’t/haven’t proves that you are not suitably skilled to deal with this yourself.

    1 Tell partner everything
    2. Go get help

    http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/DebtsAndArrears/DG_10013261

    Don’t jump off a bridge. It is not the answer. The banks will come after your partner and kids.
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