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#1 Panda

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Posted 23 March 2012 - 01:47 AM

http://britishexpats...ad.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 Sir Mervyn - One Of The Greatest Financial Incompetents Ever said to the incompetent politician at the enquiry "Why don't you just listen you dolt and one of these days between us we might just get it right - or not"

Now these rolled up debt thingy's and the banks that hold them are pretty much worthless, how much would you pay for a case of wine knowing that one of the bottles contained poison? Game Over.

#2 Paddles

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Posted 23 March 2012 - 05:21 AM

Do you think they'll buy a place in Australia as soon as they arrive too, just to ensure they get another capital loss?
"And thus the rule, supported by the experience of centuries; the speculative episode always ends, not with a whimper but with a bang."
J. K. Galbraith - A short history of financial euphoria

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#3 Giordano Bruno

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Posted 23 March 2012 - 06:24 AM

I expect it is quite common, except for the Australia plans. Savvy investors, don't you know.

----------------- ********************** -----------------


Regarding QE I think that Fiat Money Inflation in France is worth a read.

Property prices only ever go up ... except, of course, when they stay the same or when they come down.

You can go wrong with bricks and mortar.

The banksters need their lovely fat bonuses. The taxpayer has to pay.
Never mind, Taxpayer. Think of it as an exercise in generosity.

Profits will be privatized and losses will be socialized. - Thanks a bunch!

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#4 bomberbrown

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Posted 23 March 2012 - 06:46 AM

But don't forget boys and girls, renting is dead money.
Posted Image
In the 1950s Local Authorities built over 200,000 homes per year. In 2004 they built just 133.
Housing - Trends in tenure and cross tenure topics (general)

#5 isg

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Posted 23 March 2012 - 06:49 AM

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.

#6 Paddles

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Posted 23 March 2012 - 07:10 AM

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


If that makes you chuckle, you'll get a hernia laughing at the comments under this article. Stunning levels of denial.
"And thus the rule, supported by the experience of centuries; the speculative episode always ends, not with a whimper but with a bang."
J. K. Galbraith - A short history of financial euphoria

My blog from enemy territory

#7 madpenguin

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Posted 23 March 2012 - 07:16 AM

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?

http://www.youtube.com/watch?v=W-fav6_2TqA

Edited by madpenguin, 23 March 2012 - 07:38 AM.


#8 Gone baby gone

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Posted 23 March 2012 - 07:44 AM

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.

#9 Small Potatoes

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Posted 23 March 2012 - 09:40 AM

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!

#10 lie to bet

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Posted 23 March 2012 - 09:49 AM

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.

#11 aSecureTenant

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Posted 23 March 2012 - 09:52 AM

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.

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#12 hotairmail

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Posted 23 March 2012 - 09:55 AM

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?

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#13 Paddles

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Posted 23 March 2012 - 09:55 AM

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, 23 March 2012 - 09:56 AM.

"And thus the rule, supported by the experience of centuries; the speculative episode always ends, not with a whimper but with a bang."
J. K. Galbraith - A short history of financial euphoria

My blog from enemy territory

#14 aSecureTenant

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Posted 23 March 2012 - 09:57 AM

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", 23 March 2012 - 09:57 AM.

"Capitalism has defeated communism. It is now well on its way to defeating democracy" ~ David Korten

“To think output and income can be raised by increasing the quantity of money, is like trying to get fat by buying a larger belt” ~ John Maynard Keynes 

 

Ignoring ALL UKIP and 'Election' threads on HPC until further notice


#15 Paddles

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Posted 23 March 2012 - 09:58 AM

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.
"And thus the rule, supported by the experience of centuries; the speculative episode always ends, not with a whimper but with a bang."
J. K. Galbraith - A short history of financial euphoria

My blog from enemy territory




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