What happens if house won't rent out...

[hannahf]

We are due to fly out in five weeks and I am really worried that our house won't rent out in time. As we are on a 457 haven't had time to try and sell (only got about five grand equity anyway) so put it up for rent two weeks ago - quote agent "It will fly off the shelf, be gone by the weekend". Yeah right we haven't had one viewing yet!

We will have enough money to cover one months mortgage without rental income but then that is it - has anyone else been in this situation? Will the mortgage company give us some sort of payment holiday whilst we try and get it let or whilst I try and find a job out there? Is it worth talking to the bank now to explain what might happen?

Any advice at all?

Its just one stress after another sometime you kinda wonder if it all worth it.....

[notmanfamily]

Have you looked in to a guaranteed rental scheme? You obviously get less each month but you are guaranteed it each month and dont have to worry about tenants not paying their rent etc.

[hannahf]

I haven't how does this work? Who would I need to contact?

[notmanfamily]

Originally Posted by hannahf

I haven't how does this work? Who would I need to contact?

We are looking at going through Northwood, they are an estate agency I think they have offices all over but not sure. They do a platinum scheme which basically mean they are our tenants, if they dont get a tenant in they still pay us rent. They also take the risk out of non payment etc.

We cant sell our house yet, its worth less now than last year even though we have new kitchen etc bloody government!!

Hope you have something similar in your area
good luck

[hannahf]

Thanks - just tried them and they don't cover our area. Such a shame as they would have been perfect.

[JoJoB]

Hiya! We also tried selling - 3 viewings since April and not one offer and house is in top condition in a prime location. We've had ours up for rent for 3 weeks now - had 1 viewing (a group of 4 Polish people who were intested but even the EA advised against because of the potential wear and tear to the ouse). One other viewing was a no-show and we fly in 4 weeks... am getting a little concerned and will be ringing the EA in the morning for a chat as they told me exactly what they told you. That said, we have got 6 months rent put aside so have a little time up our sleeves. Also, our neighbours have just moved to Germany and they rented theirs quite quickly - although theirs was slightly cheaper as they have 1 less bedroom. Fingers crossed! Have you tried speaking to any other agents in the area to get their opinion? Good luck!

[KIRK AND CO]

Originally Posted by hannahf

We are due to fly out in five weeks and I am really worried that our house won't rent out in time. As we are on a 457 haven't had time to try and sell (only got about five grand equity anyway) so put it up for rent two weeks ago - quote agent "It will fly off the shelf, be gone by the weekend". Yeah right we haven't had one viewing yet!

We will have enough money to cover one months mortgage without rental income but then that is it - has anyone else been in this situation? Will the mortgage company give us some sort of payment holiday whilst we try and get it let or whilst I try and find a job out there? Is it worth talking to the bank now to explain what might happen?

Any advice at all?

Its just one stress after another sometime you kinda wonder if it all worth it.....

Hope I dont have your problem when I go must be a real head ache.

[Andy and Tracy]

Have PM'd you with advice.
Tracy

[Jules2409]

What springs 2 my mind is voluntary repossesion - in the early 90's recession we had 2 move for work & the bank manager actually advised us 2 do that. We didn't as it affects yr credit rating but in yr case that's irrelevant (unless yr planning on coming back?)

I would make an appointment with a debt counsellor at yr local CAB. they will assist you in making the best approach 2 yr bank & if you'd consider voluntary rep. they will advise you of the consequences - for one tre mortgage co will sell yr house 4 the best price they can get but in this mcrket that could be less than you owe & you can be pursued 4 the balance

In the current climate yr mortgage co will want 2 avoid repo so a payment holiday is very likely but the interest would accrue & unless you made back payments pretty quickly tre impact of that on the total amount repaid over the term would be far greater than you might imagine (just like a small overpayment has a big effect). If you do go down this route make sure you get a detailed illustration first, the calcultions are pretty conplex (& I know 'cos I test the IT systems that do them & hv 2 do them long hand!)

Definitely talk 2 the CAB before you do anything.

Hope it all works out. who knows a tenent might appear this weekend

Jules

[Andy and Tracy]

for one tre mortgage co will sell yr house 4 the best price they can get but in this mcrket that could be less than you owe & you can be pursued 4 the balance
Jules[/quote]

Forgive me for contradicting you Jules, but we lost our house in the 93 recession. The Building Society accepted a third of what it was worth and pursued us for the rest for 10 years. It was worth £95k at the time - they sold it for £30k. We were devastated. The new people got a gorgeous house cheap and we were pursued for years and years. And they are relentless and devious to get their money back. It made me ill for a long time. This would definitely be a last resort. Mortgage debt can be pursued for 12 years. Business debt for 6 years, apparently, so please be careful. Banks behave no better than loan sharks, believe me!
Tracy