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

Btl Forced Sale

Recommended Posts

Just a bit of mortgage/BTL trivia. I dont think I've ever heard of this one.

I'm dealing with probate where two BTLs are involved. They are both a yielding around +3% after all costs. (base rate trackers).

It turns out that the mortgage cannot be transferred to the beneficiary (not me) but a new mortgage has to be taken out.

Althought the beneficiary has a good income, they already have a mortgage and they won't be able to qualify for a new BTL mortgage with the latest LTV requirements at any sensible rate. (I'd guess LTV required would be 80%).

So the result is a forced sale as far as I can see (good for HPC bears) but on the downside, a good tenant gets thrown out through no fault of their own.

One way around a forced sale seems to be to never complete probate whilst the 1% mortage rate is available. Odd but maybe doable.

VMR.

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:   287 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.