Panda

What An Anecdotal.......

21 posts in this topic

http://britishexpats.com/forum/showthread.php?t=752360

I would much rather be totally open with our mortgage lender about our Australia plans but it doesn't seem I have a choice unless any of you know any different.

So here's our situation with the house. 5 years ago we took out a 125% mortgage to consolidate some debts and refurbish the house (it badly needed it and definitely had potential). We thought that with the improvements to the house, rewiring...new central heating...double glazing...new kitchen...new bathroom...walls moved...oak flooring...new carpets...new door frames and doors...gardens landscaped...etc, the house value would go up and be near what we borrowed. Then the recession arrived and buggered all that up.

Roll on 5 years and we have a house that is probably worth what we paid for it despite all of the improvements so we have negative equity. Our mortgage lender isn't offering any new deals to existing customers so we can't fix the rate or change to a buy to let. We can't move lender because of the negative equity. And a friend of a friend who works for our lender says they wouldn't give us permission to rent the house out because of the negative equity. And if we sold it for what it's worth, if it did sell that is, we'd still have about 20 grand outstanding to the lender.

I know we'd be in breach of the contract terms if we don't tell the lender, and i'm aware of the consequences, but I don't see any other choice other than risk it or not go to oz. We'd obviously go through a rental agent and get the necessary insurances to be a landlord so we and the tennants would be protected. But is there any way that our lender could find out that we'd rented our house out?

Share this post


Link to post
Share on other sites

Do you think they'll buy a place in Australia as soon as they arrive too, just to ensure they get another capital loss?

Share this post


Link to post
Share on other sites

http://britishexpats.com/forum/showthread.php?t=752360

I would much rather be totally open with our mortgage lender about our Australia plans but it doesn't seem I have a choice unless any of you know any different.

So here's our situation with the house. 5 years ago we took out a 125% mortgage to consolidate some debts and refurbish the house (it badly needed it and definitely had potential). We thought that with the improvements to the house, rewiring...new central heating...double glazing...new kitchen...new bathroom...walls moved...oak flooring...new carpets...new door frames and doors...gardens landscaped...etc, the house value would go up and be near what we borrowed. Then the recession arrived and buggered all that up.

Roll on 5 years and we have a house that is probably worth what we paid for it despite all of the improvements so we have negative equity. Our mortgage lender isn't offering any new deals to existing customers so we can't fix the rate or change to a buy to let. We can't move lender because of the negative equity. And a friend of a friend who works for our lender says they wouldn't give us permission to rent the house out because of the negative equity. And if we sold it for what it's worth, if it did sell that is, we'd still have about 20 grand outstanding to the lender.

I know we'd be in breach of the contract terms if we don't tell the lender, and i'm aware of the consequences, but I don't see any other choice other than risk it or not go to oz. We'd obviously go through a rental agent and get the necessary insurances to be a landlord so we and the tennants would be protected. But is there any way that our lender could find out that we'd rented our house out?

As an ex expat I do frequent that site quite a lot to get a feel for what the muppets are thinking. In my view this one is just another lamb to the slaughter. In my opinion the property spruikers are much more proficient in their nefarious profession than they are in the UK so the above person will no doubt be sucked into a massive mortgage for a crappy little unit in a crap suburb and tell themselves they have done well.

Share this post


Link to post
Share on other sites

But don't forget boys and girls, renting is dead money.

laugh.gif

If that makes you chuckle, you'll get a hernia laughing at the comments under this article. Stunning levels of denial.

Share this post


Link to post
Share on other sites

http://britishexpats.com/forum/showthread.php?t=752360

I would much rather be totally open with our mortgage lender about our Australia plans but it doesn't seem I have a choice unless any of you know any different.

So here's our situation with the house. 5 years ago we took out a 125% mortgage to consolidate some debts and refurbish the house (it badly needed it and definitely had potential). We thought that with the improvements to the house, rewiring...new central heating...double glazing...new kitchen...new bathroom...walls moved...oak flooring...new carpets...new door frames and doors...gardens landscaped...etc, the house value would go up and be near what we borrowed. Then the recession arrived and buggered all that up.

Roll on 5 years and we have a house that is probably worth what we paid for it despite all of the improvements so we have negative equity. Our mortgage lender isn't offering any new deals to existing customers so we can't fix the rate or change to a buy to let. We can't move lender because of the negative equity. And a friend of a friend who works for our lender says they wouldn't give us permission to rent the house out because of the negative equity. And if we sold it for what it's worth, if it did sell that is, we'd still have about 20 grand outstanding to the lender.

I know we'd be in breach of the contract terms if we don't tell the lender, and i'm aware of the consequences, but I don't see any other choice other than risk it or not go to oz. We'd obviously go through a rental agent and get the necessary insurances to be a landlord so we and the tennants would be protected. But is there any way that our lender could find out that we'd rented our house out?

To be honest I have mixed feelings, certainly I saw the current crisis a mile off but there are many people who just beleive what they were told, call them naieve or sheeple, but when the nice man at the bank lent, and continued to lend them money they assumed everything must be ok, and look how many people did beleive this (just look at the figures on the Credit Action website Credit Action Statistics)

4-5 years ago my kids used to moan that despite earning good money we didn't have a brand new flatscreen TV or a new house like their friends had, think they at least understand a bit better now the chickens have come home to roost.

There are some on here who say people should have more responsibility for there financial affairs but how many younger people starting out or those whe have busy working lives have the time or experience to check these things and should they have to?

Should a plumber or mechanic also be an expert in mortgages and loans?, when my immersion heater goes or the car needs an MOT I don't do that myself, and wouldn't want to, and I'm pretty certain I'd mess it up anyway

The finance industry in my view is equally to blame Government give them pretty much a free hand in the UK compared to other European countries, and in any case aren't they supposed to assess risk someone may default when they lend, or has that gone out of fashion?

Edited by madpenguin

Share this post


Link to post
Share on other sites

Do you think they'll buy a place in Australia as soon as they arrive too, just to ensure they get another capital loss?

Funny, I was thinking exactly the same thing as I read their "plight". I'll bet you a case of Fosters (what a prize!) that as soon as they turn up in Oz, they end up trying to get into a similar position over there.

Share this post


Link to post
Share on other sites

http://britishexpats.com/forum/showthread.php?t=752360

I would much rather be totally open with our mortgage lender about our Australia plans but it doesn't seem I have a choice unless any of you know any different.

So here's our situation with the house. 5 years ago we took out a 125% mortgage to consolidate some debts and refurbish the house (it badly needed it and definitely had potential). We thought that with the improvements to the house, rewiring...new central heating...double glazing...new kitchen...new bathroom...walls moved...oak flooring...new carpets...new door frames and doors...gardens landscaped...etc, the house value would go up and be near what we borrowed. Then the recession arrived and buggered all that up.

Roll on 5 years and we have a house that is probably worth what we paid for it despite all of the improvements so we have negative equity. Our mortgage lender isn't offering any new deals to existing customers so we can't fix the rate or change to a buy to let. We can't move lender because of the negative equity. And a friend of a friend who works for our lender says they wouldn't give us permission to rent the house out because of the negative equity. And if we sold it for what it's worth, if it did sell that is, we'd still have about 20 grand outstanding to the lender.

I know we'd be in breach of the contract terms if we don't tell the lender, and i'm aware of the consequences, but I don't see any other choice other than risk it or not go to oz. We'd obviously go through a rental agent and get the necessary insurances to be a landlord so we and the tennants would be protected. But is there any way that our lender could find out that we'd rented our house out?

This makes me so angry - they never think of the tenants. We found out earlier this year that our overseas landlord doesn't have permission to let and can't produce evidence of valid insurance. We are now complaining to ARLA and TPO about the letting agents as this is still unresolved. My main concern is over the insurance (especially for an overseas landlord) - if there is an incident that causes death/permanent injury as a consequence of the landlord's negligence (eg a broken staircase that the landlord doesn't get repaired and someone falls down the stairs) then the insurance company wouldn't pay out damages if they don't know the property is tenanted. Unauthorised tenants also don't have quite the same protection than authorised (though at least the law change in 2010 prevents immediate eviction)....

The people above took a chance on the property ladder and lost. Life is tough like that sometimes but you don't then have the right to ask other people to live unknowningly in unauthorised uninsured property.

Rant over - sorry!

Share this post


Link to post
Share on other sites

We don't have any choice.....

There clearly is a choice:

1/ Continue to meet the obligation committed to when taking out 125% mortgage.

or

2/ Fraudulently rent out property, whilst moving to Australia as paying back debt is tough and now quite boring.

Obviously starting again seems more exciting at the moment. In five years time they can start all over again because there is no other choice.

Share this post


Link to post
Share on other sites

We don't have any choice.....

There clearly is a choice:

1/ Continue to meet the obligation committed to when taking out 125% mortgage.

or

2/ Fraudulently rent out property, whilst moving to Australia as paying back debt is tough and now quite boring.

Obviously starting again seems more exciting at the moment. In five years time they can start all over again because there is no other choice.

3) Jingle mail, run off to Oz land.

Share this post


Link to post
Share on other sites

As an ex expat I do frequent that site quite a lot to get a feel for what the muppets are thinking. In my view this one is just another lamb to the slaughter. In my opinion the property spruikers are much more proficient in their nefarious profession than they are in the UK so the above person will no doubt be sucked into a massive mortgage for a crappy little unit in a crap suburb and tell themselves they have done well.

You don't work for Goldman's do you?

Share this post


Link to post
Share on other sites

3) Jingle mail, run off to Oz land.

Statute of Limitations is 12 years for mortgage debt.

Better back yourself to make a go of it in Australia otherwise you're a bit screwed. By the way, 30% return within two years, presumably complaining about lack of Watney's Red Barrel and Chelsea's matches being on at unsociable hours.

Edited by Paddles

Share this post


Link to post
Share on other sites

Statute of Limitations is 12 years for mortgage debt.

Better back yourself to make a go of it in Australia otherwise you're a bit screwed. By the way, 30% return within two years, presumably complaining about lack of Watney's Red Barrel and Chelsea's matches being on at unsociable hours.

Would they actually carry out a UK credit check in Oz, say to rent an apartment, or get basic utilities?

Edited by "Steed"

Share this post


Link to post
Share on other sites

Would they actually carry out a UK credit check in Oz, say to rent an apartment, or get basic utilities?

Didn't for us. But then I dropped 6 months rent down up front.

Share this post


Link to post
Share on other sites

If they are planning to commit an act of fraud by absconding to the colonies and letting out their house illegally, surely discussing these plans in a public domain is conspiracy.

I'm not a lawyer.

Share this post


Link to post
Share on other sites

3) Jingle mail, run off to Oz land.

May be correct for a small sum, but is high risk if the amount is big enough:

http://www.claytonutz.com/publications/edition/16_february_2012/20120216/enforcing_uk_judgments_in_australia.page

Australia and the United Kingdom have a reciprocal arrangement for the enforcement of judgments. Consequently, money judgments of most UK courts, which satisfy certain criteria, may be enforced in Australia by registration under the Act.

Share this post


Link to post
Share on other sites

This makes me so angry - they never think of the tenants. We found out earlier this year that our overseas landlord doesn't have permission to let and can't produce evidence of valid insurance. We are now complaining to ARLA and TPO about the letting agents as this is still unresolved. My main concern is over the insurance (especially for an overseas landlord) - if there is an incident that causes death/permanent injury as a consequence of the landlord's negligence (eg a broken staircase that the landlord doesn't get repaired and someone falls down the stairs)

If you think that LLs routinely have insurance for this you are living in cloud cuckoo land.

When I had a BTL it was part of a purpose build block and the only insurance that I had was that supplied by the management company, which certainly didn't cover this (for an internal staircase, obviously it did for the common staircase)

tim

Share this post


Link to post
Share on other sites
There are some on here who say people should have more responsibility for there financial affairs but how many younger people starting out or those whe have busy working lives have the time or experience to check these things and should they have to?

Should a plumber or mechanic also be an expert in mortgages and loans?, when my immersion heater goes or the car needs an MOT I don't do that myself, and wouldn't want to, and I'm pretty certain I'd mess it up anyway

The finance industry in my view is equally to blame Government give them pretty much a free hand in the UK compared to other European countries, and in any case aren't they supposed to assess risk someone may default when they lend, or has that gone out of fashion?

You don't need to be an expert. Look at house prices 2003 to now. Ask yourself if they represent value.

Even with a massive 50% crash overnight, I'd still consider houses in my areas of interest extremely expensive. £350,000+ for a semi, £200K+ for a terrace. Similar for crummy apartment, or a FirstBuy shared-ownership. All you have to do is ask yourself if it's value for money. Ask yourself what would happen to your income if there is ever a set back in your industry or connected sector.

And if BOMAD is helping you out, ask yourself if it's sustainable and why they have to do so. Took the money anyway, to get your boost and advantage over other people who don't have such access, to buy towards peak? Well watch that value burn.

Share this post


Link to post
Share on other sites

If they are planning to commit an act of fraud by absconding to the colonies and letting out their house illegally, surely discussing these plans in a public domain is conspiracy.

I'm not a lawyer.

Thats why I didnt reply......... :P

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.