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Who owns a rental property?

Discussion in 'Retirement' started by frodo_magic, Sep 8, 2020.

  1. frodo_magic

    frodo_magic Occasional commenter

    old_dobbin, wayside34 and plot71 like this.
  2. old_dobbin

    old_dobbin Occasional commenter

    There doesn't seem to be a painless solution to the time bomb of unpaid rent by tenants leading to unpaid mortgages by landlords. The longer that rent is unpaid, the bigger the debt and problem for landlords, particularly those with large mortgages. At some point, there will have to be evictions and a rush of landlords trying to sell their properties. Even if there's an effective vaccine soon, that won't necessarily lead to lower unemployment and even if the entire debt burden created by unpaid rent is shouldered by landlords, eventually there will be repossessions and banks and building societies will place repossessed properties on the market. The government should create many more homeless shelters.
     
  3. PeterQuint

    PeterQuint Lead commenter

    I suppose this depends on your situation.

    if you’ve got a buy-to-let mortgage, there’s a problem.

    But if you own the property outright, not so much, unless you desperately need the income from the rent to live on.
     
    chelsea2, stopwatch and Lara mfl 05 like this.
  4. lindenlea

    lindenlea Star commenter

    My son has benefitted from people downsizing from affluent Highgate to his one bed in E London. Fingers crossed.
     
    Lara mfl 05 likes this.
  5. Lara mfl 05

    Lara mfl 05 Star commenter

    I expect as Peter Quint says, those people who have 'rental portfolios and have mortgages on the properties it will be a tough time, but for anyone who owns the property, through inheritance or having bought a property for student lets when their own children were students and have paid off the mortgage, or Housing associations who own the properties less so.
     
    PeterQuint likes this.
  6. thejudgesscoresarein

    thejudgesscoresarein Established commenter

    I have a friend who is a property developer and purchases dilapidated properties at auction to renovate and then rent out or sell (which ever gives the greater yield) and he’s had a problem with two tenants not paying rent and the both said properties are mortgaged. Apparently, both tenants have been furloughed which resulted in a reduction of income and they cannot be evicted due to protection laws.
    They’ve had to pay the mortgage on both for the last 3 months (3 months payment holiday) with no form of payment on rent, which is around £4,000 they’ve had to pay out of their own pocket - There’s no support there at all for landlords. When I sell my home next year and relocate (and sold my holiday home in tenerife) I was planning on buying a small BTL home and rent out, but after all this, I don’t think I’m going to bother. Too much hassle.
     
    frodo_magic and Lara mfl 05 like this.
  7. frodo_magic

    frodo_magic Occasional commenter

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