Whether you feel stuck with a property you no longer want, you have a rental property that no longer makes financial sense, perhaps due to negative equity, or you have an interest only term coming to an end with no way to repay the loan, there are solutions.
Landlord Debt Advisory has helped landlords to write off millions of pounds in debt.
How can we help?
This approach, also known as an informal settlement, involves the borrower selling the property and our team negotiating with the lender to write off as much of the shortfall from the sale as possible. Our client will then have an agreed, affordable amount to repay either in instalments or as a single lump sum payment depending on what makes the most financial sense for them.
In other cases, an individual voluntary arrangement (IVA) is the best option. An IVA is a legal agreement between you and your creditors. We would consider an IVA in cases where a landlord owes money to multiple creditors.
Most, though not all, types of debt can be included in an IVA, including mortgage debt, credit card debt, unpaid council tax or money owed to HMRC. An IVA might also be worth discussing if you own multiple properties with mortgages from different lenders, or you have unsecured debt from several creditors.
Once a settlement is agreed with your lenders it can be paid as a five-year payment plan, known as a contribution IVA, or, if you can afford it, as a single lump sum.
Restructuring or remortgaging can be more complicated for landlords compared to other residential borrowers in light of recent changes to Prudential Regulation Authority rules and the fact that multiple properties can be involved, but for some clients, it is an option.
After carrying out your review, restructuring your current portfolio or obtaining a new mortgage arrangement may be the most suitable option. This may still be available if your properties are in negative equity. We have successfully negotiated better rates and extended terms for our Landlord clients, even when there was insufficient equity or affordability to refinance elsewhere.
We have successfully negotiated hundreds of cases every year where we have arranged the sale of our clients’ homes and reached an affordable debt settlement with the lender. Whatever your circumstances, the first step to dealing with your property debt is to contact Landlord Debt Advisory on 0161 222 4311 or online at our website to arrange an initial free, no-obligation consultation with one of our advisers.