BTL Landlord in trouble

[Turion]

This weekend returned the keys of a city rental flat to the landlord. This flat was used as weekday accomodation for distance contract. Landlord is a very nice guy with young family who owns 5 (mortgaged) BTL's and until recently had the ambition to go 'professional' with property. He had already gone to part time work in order to have more family time. This time last year everything was rosy in the garden.

Recently though, things have changed big time for him. The 8+% mortgage rates he is servicing has made three of the flats uneconomic. This and high service charges, static rents and falling values risk wiping him out. Now he is back to full time working in order to plug the gaps. He hopes to ride this out. I hope he can, but it could be years and with falling values he can't re-mortgage. I presume he will be stuck on the BTL varible rate of his lender which will hurt. I suppose they would only pull the plug if he cannot service these debts.

[BrilloPad]

Sounds like he had little equity in them?

[bogeyman]

Ah! Now it all makes sense.

I wondered to myself "What has this Turion bloke got against landlords?".

The fact that he could buy and sell you perhaps.

Hmmm.

[Spacecadet]

so this is the btl story you had us all waiting for?
http://forums.contractoruk.com/532251-post4.html

[Turion]

so this is the btl story you had us all waiting for?
http://forums.contractoruk.com/532251-post4.html

Yes. you like it? True story and must be replicated 000's of times throughout the country.

Bogey, I love BTL. Renting a flat for remote contracts is cheap and simple now. What will I do when BTL is no more ? Hotels? House share

[PAH]

Renting a flat for remote contracts is cheap and simple now.

Any experience of negotiating a shorter initial rental period than 6 months (incase of non-extension of an initial 3 month contract), or is it the law that normal lets must be at least 6 months?

If some landlords may be able to accept a shorter initial period (better than having their btl empty), wondering what sort of sweeteners they may accept if the prospect of getting some rent isn't enough, apart from more cash of course.

[bogeyman]

Yes. you like it? True story and must be replicated 000's of times throughout the country.

Bogey, I love BTL. Renting a flat for remote contracts is cheap and simple now. What will I do when BTL is no more ? Hotels? House share

It has always been cheap and simple!

[tim123]

Any experience of negotiating a shorter initial rental period than 6 months (incase of non-extension of an initial 3 month contract), or is it the law that normal lets must be at least 6 months?

.

No there is no law against shorter rentals, but there are many agents who think that there is.

Trying to get a shorter term out of an agency rental is normally next to impossible.

tim

[Turion]

Any experience of negotiating a shorter initial rental period than 6 months (incase of non-extension of an initial 3 month contract), or is it the law that normal lets must be at least 6 months?

If some landlords may be able to accept a shorter initial period (better than having their btl empty), wondering what sort of sweeteners they may accept if the prospect of getting some rent isn't enough, apart from more cash of course.

Yes, it's possible. This rental was initially 2 months and then extended monthly as needed. Most agents push 6 month min contracts, but you can stil ask for short let. Could cost more of course. Maybe offering 3 months rent up front may be a good sweetener.

[bogeyman]

This weekend returned the keys of a city rental flat to the landlord. This flat was used as weekday accomodation for distance contract. Landlord is a very nice guy with young family who owns 5 (mortgaged) BTL's and until recently had the ambition to go 'professional' with property. He had already gone to part time work in order to have more family time. This time last year everything was rosy in the garden.

Recently though, things have changed big time for him. The 8+% mortgage rates he is servicing has made three of the flats uneconomic. This and high service charges, static rents and falling values risk wiping him out. Now he is back to full time working in order to plug the gaps. He hopes to ride this out. I hope he can, but it could be years and with falling values he can't re-mortgage. I presume he will be stuck on the BTL varible rate of his lender which will hurt. I suppose they would only pull the plug if he cannot service these debts.

Oh my God!

How you must have w@nked off over it all !

Your posts positively reek of spite and envy.