Jump to content
House Price Crash Forum
Sign in to follow this  
Ash4781

Should I Hand Back Buy-to-let Keys?

Recommended Posts

http://www.thisismoney.co.uk/mortgages-and...=moretopstories

I have a portfolio of properties that don't have a great deal of equity. My rental income covers most of the properties, but a couple just lose each and every month to the extent where the whole portfolio is in arrears and I am struggling to keep up with all my payments.

What are the implications if I hand the keys back on two or three properties and just concentrate on making the rest profitable and survive? S.B., Gillingham, Kent

Simon Moon from This is Money replies: Handing back the keys was seen as the easy way out when mortgage interest rates reached crippling heights in the early Nineties.

Years later many of those who thought they could walk away from their financial troubles found themselves dogged by debt collectors and struggling to cope because of financial black-listing.

Steven Hilton at the National Landlords Association offered this advice: 'Before doing anything drastic, it's worth considering other avenues. Instead of risking a black mark on your credit record it may be worth seeing if you can sell the property to another landlord or property investor, especially if it comes with rent-paying tenants.

'Just because the numbers don't add up for you, it doesn't mean another landlord couldn't turn a profit.

'Depending on the type of building, it could be worth contacting a local housing association to see if your property is acceptable to add to their books.'

I understand they appoint receiver of rent. BTL not doing so well http://news.rla.org.uk/index.php/archives/385

Sounds like he's going to do a runner.

Edited by Ash4781

Share this post


Link to post
Share on other sites
You can hand your keys back in the USA, it is called "Jingle Keys", but it doesn't work like that here.

Shhh - Don't tell the BTL scum that.

Share this post


Link to post
Share on other sites
You can hand your keys back in the USA, it is called "Jingle Keys", but it doesn't work like that here.

Very true. A mortgagee is not under any duty at all to take possession of the property. It's not the lenders property (contrary to what some on here prefer to say), it's the borrowers.

Why should they take it back in this climate? If they do then they are subject to all sorts of obligations in relation to maintaining the property, insuring it and, if they sell it, ensuring they get proper price, etc. This all involves spending money.

Share this post


Link to post
Share on other sites
Electrician training may help people to save money as many more are purchasing one and two-bedroom flats for investment purposes, it has been revealed.

According to fish4homes, the buy-to-let market has been particularly prevalent over the past three to five years.

As a result, landlords are finding it harder to secure a tenant because people have a much wider choice of properties available to them.

Lisa Walker, marketing director at fish4homes, added that "many of these developments are in cities which traditionally did not have strong executive rental markets".

Embarking upon an electrical training course may prove worthwhile, therefore, as a landlord could save money by doing repair work on a property and sprucing it up to entice tenants himself.

http://www.met-uk.com/met-news/536

:unsure:

Share this post


Link to post
Share on other sites
You can hand your keys back in the USA, it is called "Jingle Keys", but it doesn't work like that here.

I think you'll find it's 'jingle mail' from the sound it makes when you post the keys back. Jingle keys would be a silly name.

Share this post


Link to post
Share on other sites
http://www.thisismoney.co.uk/mortgages-and...=moretopstories

I understand they appoint receiver of rent. BTL not doing so well http://news.rla.org.uk/index.php/archives/385

Sounds like he's going to do a runner.

My initial thought of course was that landlords should not be in possession of sets of keys to their property once it is rented out without the tenants permission.... so the person in question shouldn't be bale to hand the keys back to the lender.

Share this post


Link to post
Share on other sites
My initial thought of course was that landlords should not be in possession of sets of keys to their property once it is rented out without the tenants permission.... so the person in question shouldn't be bale to hand the keys back to the lender.

Don't need the tenants permission. You can keep a set of keys for various reasons; maintenance, gas/electrical safety checks, emergencies, etc. You just need to put it in the contract. The LL can only enter for those specific purposes though, and only at reasonable times, as the tenant has the right to exclude everyone, including the LL.

Share this post


Link to post
Share on other sites
Maybe they figure that it's a very large addressable market of people who are becoming desperate. :)

How many BTL's does it take to change a light bulb?

Share this post


Link to post
Share on other sites
You can hand your keys back in the USA, it is called "Jingle Keys", but it doesn't work like that here.

Jingle Mail is allowable in some US states where they have non-recourse but not others but wouldn't apply in this case anyway.

Non-recourse basically means they can only take what you have at the time, and can't chase you afterwards. (Provided there was no sign of dishonesty or attempts to conceal assets.)

They can still take everything you have, but not everything you WILL EVER have as with out mortgages.

Share this post


Link to post
Share on other sites
Jingle Mail is allowable in some US states where they have non-recourse but not others but wouldn't apply in this case anyway.

Non-recourse basically means they can only take what you have at the time, and can't chase you afterwards. (Provided there was no sign of dishonesty or attempts to conceal assets.)

I heard somewhere that in the US non recourse only applied to a persons main home, not second or BTL type properties.

Edited by Iron Condor

Share this post


Link to post
Share on other sites
I can't see why he's getting his knickers in a twist. He's over the worst. This time next year he will have a load more equity due to house price rises.

If he sells or gives up now it will be worst mistake of his life.

Better put a couple on the market I think.

wot do u put in your porridge??

Share this post


Link to post
Share on other sites
I can't see why he's getting his knickers in a twist. He's over the worst. This time next year he will have a load more equity due to house price rises.

If he sells or gives up now it will be worst mistake of his life.

Better put a couple on the market I think.

Where's the money coming from?

Lending @ 2007 levels brought down the banking system, so to return to those levels would be repeat of the disaster.

Seeing as 2007 prices needed 2007 levels of mortgage lending.......how are house prices going to rise exactly?

Share this post


Link to post
Share on other sites

What I haven't quite got is why nobody has called ******** on this person yet ..

You have a "Portfolio" of properties and yet you are unaware of your obligations to the mortgage lender? I know the banks made some dogy loans .. but not any to people who are THAT stupid surely ?

Share this post


Link to post
Share on other sites
What I haven't quite got is why nobody has called ******** on this person yet ..

You have a "Portfolio" of properties and yet you are unaware of your obligations to the mortgage lender? I know the banks made some dogy loans .. but not any to people who are THAT stupid surely ?

Ah but you only have to see Sibleys answer to understand the delusion. Currently in what appears to be the bull trap of the classic cycle.

People don't realise that operating any business requires solvency in front of any lenders they may have. If income is outstripped by loan repayments then the lenders can call in their loans as per the lending contract the quoted person signed. Personally I think he should hang on like Sibley suggests then the bank can repossess the lot. :D

Share this post


Link to post
Share on other sites
I can't see why he's getting his knickers in a twist. He's over the worst. This time next year he will have a load more equity due to house price rises.

If he sells or gives up now it will be worst mistake of his life.

Better put a couple on the market I think.

:D:D:wacko::wacko::wacko: Dream on baby.......

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
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   296 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.