Sale of Investment Property LTV Issue

[green70]

Has anybody approached their bank with a view to selling an investment property.

I have 3 investment properties and am contemplating sellling one to reduce the overall debt. The mortgage repayment from 2 versus 3 will be slighly lower and but will knock a chunck off the loan.

However any sale will have a negative effect on the LTV of the remaining two proprties. I am on a sinle tracker loan for all 3. My fear is that the bank will try to remove the tracker citing the LTV even though I will be reducing their default risk . Any views?

 

[Howitzer]

Presumably you're selling the property with the most equity? How will the repayments be only slightly lower? I'd be thinking, maybe naively, they'd be one third lower - that all the proceeds would be set against the mortgage.

 

[green70]

I should have been clearer, the subvention from me to make up the cap+int shortfall on the mortgage repayments would fall slightly as there would be a marginal improvement in the income \ debt reapayment ratio based on the residual two properties.

Net Net the bank still gets all of its money and reduces its balance sheet risk, however the LTV will probably end up near 100% which is a function of general market price decline.