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

Advice Needed From A New Poster

Recommended Posts

Hello All,

I have been reading this forum for some months now and finally registered, i am looking for a bit of general advice and this forum looks as good a place as any to start, firstly a bit about my background and how i have come to be on here, i moved to Belfast fromthe North East of England about five years ago and was shocked at how expensive property here was and also the clamour for property ( people camping on the ormeau road for the bakery development ), I decided to rent with my partner and child and adopt a wait and see policy. Sadly we split up however i have remained in Belfast as it is a fine place to live and i have regular access to my daughter. I then moved in with my current partner who had bought a small two bed terrace in east Belfast for crazy money at the peak of the boom, this is where it gets messy. I have saved a deposit to buy but at the moment i still dont see value in the propertys i have looked at, however we want to have a child in the next 18 months as neither of us are getting any younger so we need another bedroom. My plan is to stash the deposit and rent but can my partner rent out her property with the approval of her lender, i would say her property is only worth 40% of what she paid and it is intrest only?????? Secondly i have been looking at some property in the Lyndhurst area of Belfast ( newish development), has anyone any opinion on these propertys or the general area?? Sorry if i have rambled a bit but hopefully i havn't bored you all

Cheers.

Share this post


Link to post
Share on other sites

Hello All,

I have been reading this forum for some months now and finally registered, i am looking for a bit of general advice and this forum looks as good a place as any to start, firstly a bit about my background and how i have come to be on here, i moved to Belfast fromthe North East of England about five years ago and was shocked at how expensive property here was and also the clamour for property ( people camping on the ormeau road for the bakery development ), I decided to rent with my partner and child and adopt a wait and see policy. Sadly we split up however i have remained in Belfast as it is a fine place to live and i have regular access to my daughter. I then moved in with my current partner who had bought a small two bed terrace in east Belfast for crazy money at the peak of the boom, this is where it gets messy. I have saved a deposit to buy but at the moment i still dont see value in the propertys i have looked at, however we want to have a child in the next 18 months as neither of us are getting any younger so we need another bedroom. My plan is to stash the deposit and rent but can my partner rent out her property with the approval of her lender, i would say her property is only worth 40% of what she paid and it is intrest only?????? Secondly i have been looking at some property in the Lyndhurst area of Belfast ( newish development), has anyone any opinion on these propertys or the general area?? Sorry if i have rambled a bit but hopefully i havn't bored you all

Cheers.

Just my opinion on what I would do if I was in the position of your partner i.e 60% negative equity with a interest only mortgage, I take it they have no repayment plan in place for the capital borrowed? If that is the case I would personally be seriously considering handing back the keys to the bank ,and definitely doing so if the mortgage was taken out on a 95/100% loan to value

As for renting it the lender would want you to change the mortgage to a buy to let mortgage which would probably have a higher interest rate

Share this post


Link to post
Share on other sites

Out of interest, what happens if you don't tell the bank your now renting out the property?

Also, how would they know ?

Hi,

Cheers for the reply, i guess we could rent out without telling the bank but she just wanted to do it above board, as for handing the keys back i would agree, the mortgage is for way over what the house will be worth in our lifetime( just my opinion ) but she also has her brother down on the mortgage and he is not keen on the idea. I have pointed out that when intrest rates go back to a normal level they will be paying £1300 a month intrest only on dead duck but all ears are shut!!!!

Share this post


Link to post
Share on other sites

Out of interest, what happens if you don't tell the bank your now renting out the property?

Also, how would they know ?

How would they know ,when you ask for correspondence to be sent to a different address also your building insurance would be invalid as well BTL require BTL building insurance

Share this post


Link to post
Share on other sites

Get her to hand the keys back, go bankrupt. Rent. Keep flexible. You are NOT going to see house prices grow again in NI for 20-50 years, if ever. The easy money from the UK government and the Eu is over, and the paramilitary problem is growing again. Have you not been reading the papers about the shootings and bombings lately?

My view is that a lot of the damping down of trouble over the past ten years was due to a combination of strong political will to micromanage from westminster, the then republican leaders getting rich and tired, and a policy of shovelling masses of easy credit and public funds into Ulster. young men don't get drawn into the cause when they feel they are getting on financially and can have holidays, cars, and night on the lash. The money is ending, and as unemployment rises, more young one will get dragged into the morass.

If I owned property in NI, I'd be having a good hard look at the next 20 years likely socio-economics.....

Share this post


Link to post
Share on other sites

Out of interest, what happens if you don't tell the bank your now renting out the property?

Also, how would they know ?

In England, that's an irremediable breach of the mortgage conditions. As another poster pointed out, if the lender had known the mortgage was for rental purposes it would have charged a higher rate from the outset because it's a different proposition. Having a tenant is a unilateral alteration of the bargain.

In practice, nobody ever gets repo'd for breaches like that - it's all down to meeting the monthly instalments. And the lender really doesn't want to know - if things go tits up on the instalments, the renting breach is just another splash of petrol on an already raging bonfire. It's arguable that the bank should be repo'ing now, because the LTV is presumably at a ridiculous level, but that would be asking for prudent standards from a lunatic financial institution.

Might be worth considering her duty as a landlady - she could be sued by the tenant if it gets to repo stage. But by then she'll be bankrupt anyway!

Share this post


Link to post
Share on other sites

I'd agree the lender knowing/not knowing you are renting is a minor risk. The bigger problems will be complying with regulations which you probably don't know, paying tax on your income, trying to understand what is tax deductible and all the costs involved. I've done it, had excellent tenants and made virtually nothing, although my situation was a little more extreme.

BTW handing the keys back is not an option without declaring bankruptcy. You can do that in the US but not here, you still owe the bank whatever money they do not recover from the sale of the property if they do repossess. Bankruptcy is an option and your BTL business is already insolvent, many have already done the same for purchases in these ghost estates.

Interesting point about the troubles starting again, something I hadn't considered. We have a stable market before the ceasefire because investors where scared off. But I don't think the problems are big enough to scare them off again..yet.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

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.