We have recently been helping property investor landlords who have fallen into the nightmare scenario of their fixed rate Buy-To-Let mortgage coming to an end.
Typically a borrower might receive a letter from the lender stating that the 10 year Buy-To-Let product expires in say 12 months’ time and asking how the borrower intends to repay the loan.
In many cases, these properties are let and are generating a good income, with happy long established tenants. Paying the mortgage is no issue but crystallising the debt is!
The problem arises because these houses were bought at the peak of the market in 2006/7 and now have as much as 25% negative equity in some cases.
Our RICS Chartered Valuation Surveyors will inspect the property and prepare a Valuation of the property on behalf of the borrower client so that the client knows the property’s value and can assess their position.
By being proactive, and obtaining our advice, several clients have negotiated refinance packages and have shared the loss with the lenders (instead of looking at much higher costs if they were to force sell the property); and some clients have been able to negotiate sales rather than having the property repossessed (and meaning the tenants haven’t been evicted).
Having a professional independent Valuation by an RICS Registered Valuer is the first stage in resolving this difficult and worrying issue.
Our MRICS Chartered Valuation Surveyors would be delighted to help landlords of Buy-To-Let properties in Lancashire, who find themselves in similar circumstances.