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  1. How will UKAR handle property disposals from portfolio landlords in light of the recent Budget? It seems to me that the most aggressively leveraged landlords, who will be worst affected by the recent Budget changes to how tax relief on BTL mortgage interest and taxable rental income are calculated, are also highly likely to have mortgages tied up in UKAR. The 'bad banks' whose mortgage books UK Asset Resolution was set up to run down were in part 'bad' precisely because they had been aggressively lending into the buy-to-let sector: That being the case it would be surprising if the most aggressively leveraged landlords had not taken out mortgages with these lenders prior to them being rolled into UKAR. In fact, aggressively leveraged landlords are by definition subprime property speculators - betting everything on house price appreciation at very high leverage, on thin margins and with no real repayment plan - and so in some respects they are the quintessential remaining UKAR borrower, being the least likely to have been able to remortgage elsewhere. In light of the recent Budget many of these aggressively leveraged landlords will be looking at negative cash flows in the not too distant future and may as a result be looking to dispose of some or all of their property portfolios. They may encounter several issues in relation to this, not least of which being that aggressive mortgage equity withdrawal may mean that they now lack the equity to pay their CGT (h/t Bland Unsight and Frizzers), but those with mortgages tied up in UKAR may have additional problems. The issue is clauses like this one from Mortgage Express, that allow UKAR to enforce the repayment of all outstanding mortgages on the disposal of a single property: Mortgage Express Terms & Conditions (h/t little fish) Aggressively leveraged landlords might therefore find that they have placed themselves in a position where they cannot even safely dispose of those properties on which they have little or no Capital Gains Tax due, as doing so would allow UKAR to force the sale of other properties (perhaps with unpayable CGT bills, in negative equity, or in concentrated areas flooding the local housing market and depreciating values). UKAR have shown every inclination to enact these clauses in the past, especially in regards to unsustainable portfolios:
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