Pepper Mortgage Buy to Let

Hello

I’m not sure if what I’m asking is possible but hopefully one of you here will be able to answer that!

My FIL has a rental property that he purchased with his ex back in the boom, he was given it as part of the divorce settlement and it has €250k owing on it as they have only been paying back interest only. The house is now on the market for a little over what is owed. The house is in need of some repair and currently has tenants in place. They have been given notice but there is no sign of them leaving yet. The debt is with Pepper and my husband was wondering if he would be able to approach Pepper to take over the loan, he would have the income to cover but he doesn’t have the full deposit to purchase the property right now if he was to apply for a buy to let mortgage. We are wondering if Pepper would restructure the loan and transfer the deeds to my husband where he would use it as a rental property?

ash26 said:

We are wondering if Pepper would restructure the loan and transfer the deeds to my husband where he would use it as a rental property?

Click to expand...

Based on this thread dealing with a similar situation, I don't think so.
And another one:
And one more...

ash26 said:

Pepper would restructure the loan and transfer the deeds to my husband

Click to expand...

Nope.

Best bet is to buy the property when it comes on the market.

Why is it being sold at this stage, not going to get any value out of it?

Can it be kept & start paying down the capital?

ash26 said:

he was given it as part of the divorce settlement and it has €250k

Click to expand...

I am not sure if I understand your question.

Your Father in Law was given a property but with a mortgage attached? So he was given very little?

Now the property is in your FIL's name but the mortgage is in both your FIL's name and his X's name.

Why has he put it on the market?

Thank you all for the replies, I had thought alright it would not be possible. The house is still in both my FIL and his ex name and to honestly answer the question of why he is selling I’ve no idea!!!

ash26 said:

why he is selling I’ve no idea!!!

Click to expand...

So this is the key issue.

If he has an interest-only mortgage, it is likely that the rent received far exceeds the interest he is paying on the mortgage.

However, there are a few good reasons why he might sell now:

• The rent may be low and it might not be covering the rent
• The tenants might not be paying the rent
• The term of the mortgage might be coming to an end and so he will have to sell it and repay the mortgage then.
• It may be a condition of the divorce agreement that he remortgages to get her name off the mortgage within a specified period of time.