if i have a property which I rent out but has no equity in it, what happens to the rental monies gathred does this go to the creditors or towards the mortgage and as this is classed as a business can a 3rd party buy back the property and how much would this cost.
Hi tom, the OR can start collecting the rent and does not have to pay the mortgage. The mortgage company can if they want to get paid appoint their own LPA Receiver to collect the rent for themselves assming that it is a buy to let mortgage.
There is nothing to stop someone buying the property back but the OR is under no obligation to sell it back to you. The costs will be higher as the OR does not have to use the Low Cost Conveyencing Scheme and the offer should include the value of future rents as a business not just the equity position of the property. A word of warning, very few of these are going through at the moment
We too have a BTL - it just washes its face each month - it is border line negative equity.
We have spoken to the ORs office and they are going to allow my wife to buy the BI - My wife is now paying the mortgage from her bank account as she is not BR. At no time (so far) as the OR said he wants the rental income from my wife.
It has not gone through as yet - although the ORs office has apologised to my wife for the delay - they are very busy she said!!
Our principal home is going through - my wife has paid across the fee £211.00 plus the £1.00. That too is taking some time and she has also apologised for the delay there too
if i have a property which I rent out
Posted - 02 December 2009 : 17:28:50
