negative equity rental property terraced houses in london

Negative Equity Rental Property

It is a different matter when you have a number of negative equity rental property to deal with, instead of just your own home.

Option 3 – Negative Equity Rental Property

When you are dealing with a number of rental properties that are in negative equity, it would be unwise to use the method we suggested for a single property.

If we used that method, you would have multiple lump sum settlements to deal with, which would not be affordable.

negative equity rental property terraced houses in london

Individual Voluntary Arrangement (IVA)

With this method a legal agreement is drawn up and registered with the court system.

Your rental properties are sold and the exact negative equity is realised.

With this method, you can also include any other unsecured debt you might have, like loans or credit card balances too.

There is then a meeting of Creditors and an agreement is reached on a considerably reduced debt amount.

This amount is paid off monthly for at least 5 years, after which you will be debt free.

There are no up front fees to pay and your income and outgoings are taken into consideration when setting the monthly payments of the IVA.

There is also a “lump sum” type of IVA available as well that only lasts for about a year. You can ask about this when you get in touch.

If your debts are even more serious then have a look at Option 4 – Bankruptcy the Only Option?

Negative Equity Mortgage Solutions

This is an article on negative equity mortgage solutions that are available in the UK market. Put simply, if your mortgage is higher than the value of your property, then you are in negative equity. Main Causes Of Negative Equity There can be various causes for having a property in negative equity and you definitely...

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Write Off Your Negative Equity Legally

The second option is finding out about being able to write off your negative equity legally for a fraction of the total amount. Option 2 - Write Off Your Negative Equity Legally So you now realise that you are in property negative equity and that you need to do something right about it. Again, it really...

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Bankruptcy the Only Option?

The next thing to consider is if bankruptcy the only option. Option 4 - Is Bankruptcy the Only Option? When you are in circumstances where the debt levels are very high, then bankruptcy might well be the best legal option for you. There used to be a terrible stigma associated with bankruptcy, but since the...

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Property In Negative Equity Need To Sell Your House?

Property In Negative Equity Need To Sell? - there could be a number of reasons why you need to sell your property, but you cannot because of negative equity in the property you want to sell. Find out more about selling a house in negative equity by reading on. Why You Need To Sell Your Negative...

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Selling House In Negative Equity Advice

When you realise your property value is less than your outstanding mortgage balance, selling your house in negative equity might be your initial reaction to get rid of the problem and start over again.  We get asked all the time - can I sell my house in negative equity? The problem arises when you haven't...

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Interest Only Mortgage Time Bomb About To Explode?

Interest Only Mortgage Time Bomb - are you one of the 1.9 million households in the UK that have an interest only mortgage? Those that are in the position of having interest only mortgages are risking having to sell their homes when their mortgage deal comes to an end. This is because they are not...

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