Singing Pig

Pod it is precisely your response that may deter the investors who DO really need help and who are genuinely seeking a solution (other than giving in and handing back their keys to the lender) from voicing their concerns.

I took Carl's post to mean that he was encouraging people who had never posted and who might be worrying about the current state of affairs to share those concerns, in an effort for us all to hold on to our assets and ride out this "perfect storm" with our portfolios intact (whether thats 1 property or 50 and whether that portfolio is still in the idea stage)

I have neither the time nor the inclination to "chew the fat" with anyone and I have registered after all this time because for the first time since I personally began investing, there is an unprecedented economic global turmoil that is affecting many people

What are you worried about..?? That I may suddenly announce the "next best solution since sliced bread"..?? (sorry thats maybe too "cliched" for you..??) It may surprise you to know that I have no hidden agenda

It may also surprise you to know that beyond your computer screen there are real people with real families experiencing real difficulties. Strange that eh.....????

Clottie - thankyou for your belief in me

patsy, i'm very familiar with the real world ... i deal with real tenants, real BMV prospects, and my real accountancy clients (many of whom are small business owners), on a daily basis.  i can tell you from the many, many viewings that i have done, combined with being an accountant, that i am more familiar than you might think with the "world beyond my computer screen".  i'm not worried at all about anything you might suggest ... quite the opposite ... i would love you to suggest some solutions.  i'm just sceptical about your story ... it's a free country isn't it?!  carl's post wasn't an invite to "share our concerns" ... it was an invite to share our tips on increasing income & decreasing costs ... you have offered neither.  you say you have no time & inclination to share your story ... yet you do precisely that.  why don't you post your suggestions as requested by carl HERE, and open a new thread for your own specific problems?  i;'m sure you would get some useful responses.  (BTW ... an "income" tip ... i have started charging all new tenants a £20 pp admin fee on each new tenancy set-up.  i've also started offering washers/built-in/cupboards/digital TV aerials ...  to tenants ... for a modest rent increase plus my own margin ... increases the quality of the props, while allowing tenants to effectively pay for these things on credit).  patsy ... what are your "landlord survival guide" ideas?

Patsy, what is the typical value of your houses and the rental? cheers MP

Patsy get a grip.  You chose to invest all you eggs in one basket on the buy to let bandwagon.  If you didn't diversify your assets then thats your fault, you chose the unstable get rich quick scheme.  The strong landlords will survive and weak will fail, get over it.

brit1234:

Patsy get a grip.  You chose to invest all you eggs in one basket on the buy to let bandwagon.  If you didn't diversify your assets then thats your fault, you chose the unstable get rich quick scheme.  The strong landlords will survive and weak will fail, get over it.

You are a complete idiot and you should be ashamed to call yourself a brit and use the British flag for your avatar.

If a fellow citizen/human being is in trouble and asks for help then try to help him/her if you can otherwise at least stay away from insuting the person further. He/she hasn't done anything illegal as far as I can tell. With your attitude, you will never succeed in life. Go and ask your parents/grand parents how they coped during WW2.

I apologise to Carl for the diversion.

BabylonBusinessFinance:

You are a complete idiot and you should be ashamed to call yourself a brit and use the British flag for your avatar.

 

 And why should that be? 

 

Has the term Brit and the Union Flag been bought on a interest only mortgage with a gift deposit and now can only be used by investors?

 

Get over it.

 

 

 

 

BabylonBusinessFinance:

If a fellow citizen/human being is in trouble and asks for help then try to help him/her if you can otherwise at least stay away from insuting the person further. He/she hasn't done anything illegal as far as I can tell. With your attitude, you will never succeed in life. Go and ask your parents/grand parents how they coped during WW2.

 

I tend to help a lot of real people in trouble on and off duty in my capacity as an emergency services. I'm not going to pat people on the back who have recklessly invested all their money in property bubbles as in the same way support casino gamblers.  It is their choice, their risk.  Live by the sword, die by the sword don't blame others when it goes wrong.

 

As for you not succeeding comment I have to disagree.  My two biggest successes are my degree and commando course I also have a highly successful career with huge amounts of diverse opportunities and responsibilities.

 

I don't see what one womens greed has got to do with WW2 sacrifice. If I was in WW2 i would be straight up to  Achnacarry to sign up.

 

I live by the standard, Protect the weak, protect the innocent not protect the stupid

 

 

Patsy I admire your honesty and bravery in posting and can empathise with your motivation of trying to secure you and your families’ financial future. However at the same time struggle to understand how you (and hundreds, probably thousands of others) allowed yourselves to be so exposed. History will show that the last two to three years were a good time to be paying down debt and refinancing on long term fixed rates, as opposed to shelling out ephemeral paper equity at or close to an inevitable top, to leverage more acquisitions. BTL is a long game, the term ‘in it for the long term’ has never been more appropriate. With that in mind anyone getting into it should have looked back (at the historically cycles of interest rates, mortgage rates, inflation, property prices relative to fundamentals and global economic cycles), before deciding on the potential levels of risks rewards of entering the market at any given stage. Your challenge is that you appear to have built your portfolio quickly, over gearing at the wrong time. The situation the current UK property market faces happened in the 70’s, 80’s and 90’s. To ask or expect help from the UK tax payer and bankers is interesting, businesses fail all the time, especially ones based on a fatally flawed business model. 10 years of Nu-Labour debt driven miracle economics (lack of prudence in the good times now coming home to roost in the inevitable global downturn) and a whole generation of largely under 40 year olds are just about to experience the flip side. I truly hope that you and your family (and others in a similar situation) come through this experience in good shape. There are much more important things to life than trying to get rich, as many of us discover later rather than sooner.

patsy,

you have a simple choice here:

1.  re-mortgage onto another 85% product (assuming your rental is adequate).  E.g. a £100k prop mortgaged at 85% LTV with a 6% yield would enable you to remortgage onto the B&W 7.09%/100% interest cover product (just).  You would be breaking even, and (effectively) have to part-subsidise the prop, but that could be an option if you have good rental demand / props in good condition / are good at managing voids.  6% is a pretty modest yield. 

2.  go onto the SVR.  This could be an option depending on yield.

3.  generate some cash.  Remortgage your own PPR.  Raid your savings.  Earn extra cash.  Sell your fancy car (if applicable).  Ebay.  Cut household bills .  (etc)

4.  sell some of your props.  This is likely to be at least part of the answer.  For all props where the tenants are on periodic tenancies, issue a s21, spruce up the prop & get a decent EA & sell at a realistic price.  You may need to off-load 20 of your props in order to generate enough cash to be able to pay down the mortgages on the other 12, to enable you to remortgage onto a decent product (say 75%).  You will need to be flexible on price, and it will be a big effort to sell off 20 props, but it may be the most prudent choice.  

You have made a classic business mistake in expanding too quickly.  No need to panic, or over-react.  Just deal with the situation.  Whatever you do, you have learned a lesson. 

have you had any ‘landlord survival guide’ ideas?