According to a recent article by Letting Agency Today the amount of landlords in the UK have decreased by 8% compared to the peak in 2017. They are reporting on figures provided by Countrywide’s Hamptons International agency who has said that “tax and regulatory changes have caused some landlords to sell up and leave the sector”.
They are reporting that the average number of properties that each landlord owns has also increased.
You might be one of the landlords looking to escape from the market but unable to due to negative equity? If you are there are options available to you.
Landlord Debt Advisory (part of the CD Fairfield group) have helped their clients write off over £130 million of property debt since 2013 and are able to help landlords negotiate with their lenders to achieve debt settlements while still protecting the properties which are still in positive equity.
We are currently the only company that is authorised and regulated by the FCA to advise on all property debt options which include:
- Mortgage shortfall settlement solution
- Individual Voluntary Arrangement
- Mortgage re-negotiation
- Mortgage re-broking
- Mis-selling Case
An example of a client who we have recently helped is Robert Wilson, who we helped to achieve a debt write off on over £500,000 of negative equity that he owed on his property portfolio.
(Video of Robert Wilson testimonial to go here)
Initially we complete a case review for you, assessing your situation in terms of where you are today; we also work backwards, obtaining your original mortgage file and reviewing this to determine whether:
- You may have been Mis-sold and due redress/compensation OR if content of your mortgage file may assist you in gaining a foothold into negotiations for settlement or re-negotiation with your lender now
This service is a loss leader for Landlord Debt Advisory and is available to all qualifying clients for the subsidised cost of £395. Here we:
- Retrieval and review of your full mortgage file from your lender
- Completion of a Case Review Questionnaire
- Collation of any relevant documentation from you
From there we can advise you on:
- Was your mortgage mis-sold and if so what can you do about it?
- Do you qualify for debt reduction on your negative equity property/properties that you need to sell?
- If you have buy to lets, which of your properties are likely to “weather the storm”?
- How are interest rates, Section 24 taxation, and future property prices likely to impact you in the future?
- How do you legitimately protect your other assets in advance of any future settlement negotiations?
- Are you able to re-negotiate terms for your existing mortgage(s) for properties that you wish to keep?
- Can you re-finance elsewhere to reduce costs?
Common Questions about the Case Review service:
Will Landlord Debt Advisory share any of my information with anyone else?
No. We request your mortgage file(s) from your lender but that is the only contact we have with them unless/until you instruct us otherwise.
I have assets in positive equity such as my own home, other buy to lets, pensions etc – should I be worried?
No. The vast majority of our clients are in the same position. Thankfully it is not simply a case of selling all assets to clear mortgage shortfall debt. Remember you borrowed the money from your lender(s) at a time of overinflated property prices and reckless lending. Our case review process is there to get you the advice you need. Where relevant we will advise clients of legitimate asset protection strategies as part of the Case Review process.
Why do lenders write off debt? Surely they would just expect to be repaid in full?
Think back to the property boom of 2004-2008. Self-certified mortgages, interest-only loans with no affordability checks, no repayment vehicle required and speculative valuations. This reckless approach spawned from fractional banking, where banks were able to lend money they did not actually have on deposit. This encouraged the cavalier approach to mortgage lending that created the artificial boom in property prices. Banks heavily exposed to risky lending are restricted in how they can lend based on the level of debt they are owed from mortgage borrowers (liquidity margin). Resolving mortgage accounts by recovering the sale value of the property plus a settlement, and writing off some of the debt works for banks too.
How long does the case review take?
It depends. If the case is urgent we can fast-track this to 1-2 weeks but generally the turnaround is 3-6 weeks depending on how quickly we can recall any documentation and information from you and your lender.
What costs are there after the case review?
Some clients require the case review as a stand-alone piece of work only. This gives them certainty in respect of their current position and options; they may choose to take this forward themselves, or not. For most clients though, action is required and clients prefer to have expert representation from Landlord Debt Advisory to negotiate on their behalf. Where a property or properties are to be sold, and significant debt reduction is achievable a typical fee is £4,500 per property and mortgage account would equate to an average saving of £50,000+.
Where a re-negotiate of the existing terms is required a typical fee is £1,500. We have flexible payment terms around fees and we’ll only ever take a case forward beyond the case review, where we can clearly demonstrate a significant benefit to you.
Check out our independent reviews here.
Are you in a similar position? Have a free confidential chat with one of our professional advisers now, and see if we can help resolve your property debt problems. Call now on 0161 222 4311.