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dilemma man
Guest
Hi all,
like alot of others I'm becoming very concerned about a buy to let I have since 2006.its on interest only of 300K for the whole term less the last three years when it returns to an annuity mortage, its at a sdv rate of 4.7% and rising. Interests only repayments are 1250 with incoming rent of 1050 and the tenants are looking for another reduction which I'm not willing to give. Im subbing it already and reckon the extra payments for the next 12 months and maintaneance are around 5K a year and thats with tenants. If I consider holding onto it for another 10 years , thats 50K on what could then be worth 220k.It's probably worth about 270K and dropping. Do I cut and run by borrowing the negative equity amount before it gets too far down the road ( is it even possible) or do I have a jem of an investment and just need to sit tight and wait for the recovery?
Dilemma man
like alot of others I'm becoming very concerned about a buy to let I have since 2006.its on interest only of 300K for the whole term less the last three years when it returns to an annuity mortage, its at a sdv rate of 4.7% and rising. Interests only repayments are 1250 with incoming rent of 1050 and the tenants are looking for another reduction which I'm not willing to give. Im subbing it already and reckon the extra payments for the next 12 months and maintaneance are around 5K a year and thats with tenants. If I consider holding onto it for another 10 years , thats 50K on what could then be worth 220k.It's probably worth about 270K and dropping. Do I cut and run by borrowing the negative equity amount before it gets too far down the road ( is it even possible) or do I have a jem of an investment and just need to sit tight and wait for the recovery?
Dilemma man