Hi everyone, just wanted to see if anyone else is in a similar boat. My brother and I have about 25 buy-to-let properties, all bought around 2005-2007, and we’re really feeling the pinch lately. With Section 24, high interest rates, and the market being flooded with other landlords selling, we’re not sure what to do. The properties are all in our personal names, and they’re interest-only mortgages. We’ve been trying to sell, but it’s tough. Most of the houses need renovations to get decent prices, but without rents coming in, things just get worse. Anyone been through this? Bankruptcy? Handing them back? Any advice is welcome!
Wow, that sounds like a tough spot. Have you talked to an insolvency practitioner yet? They might give you a clearer path forward.
Dane said:
Wow, that sounds like a tough spot. Have you talked to an insolvency practitioner yet? They might give you a clearer path forward.
Not yet, but it’s on our list. Do they usually charge a lot for advice?
Dane said:
Wow, that sounds like a tough spot. Have you talked to an insolvency practitioner yet? They might give you a clearer path forward.
Some do, but you can find ones who offer a free initial consultation. Worth checking out for sure.
Have you tried selling them as-is? Might not get top dollar, but could save on renovation costs.
Shiloh said:
Have you tried selling them as-is? Might not get top dollar, but could save on renovation costs.
We’ve considered it, but the offers we’re getting are way below the equity we think is in them.
Shiloh said:
Have you tried selling them as-is? Might not get top dollar, but could save on renovation costs.
Yeah, that’s rough. Maybe try selling just a few to stabilize things? Or auction them?
IDK much about Section 24—can someone explain how it affects landlords?
Jamie said:
IDK much about Section 24—can someone explain how it affects landlords?
Basically, you can’t deduct mortgage interest from rental income for tax purposes anymore. It’s brutal for landlords.
Jamie said:
IDK much about Section 24—can someone explain how it affects landlords?
Yikes, no wonder so many are selling. Thanks for explaining!
Could you switch them into a business structure to make it easier tax-wise? I heard that might help.
Harlan said:
Could you switch them into a business structure to make it easier tax-wise? I heard that might help.
Thought about it, but the properties are in personal names, so not sure how easy that would be.
Harlan said:
Could you switch them into a business structure to make it easier tax-wise? I heard that might help.
Switching to a company structure might involve hefty stamp duty and capital gains tax. Definitely ask a tax advisor.
Are your properties all in the same area? That could be part of the issue with oversaturation.
Hollis said:
Are your properties all in the same area? That could be part of the issue with oversaturation.
Yeah, they’re all in SA15. Definitely doesn’t help that everyone’s trying to sell there right now.
Hollis said:
Are your properties all in the same area? That could be part of the issue with oversaturation.
Maybe look at targeting buyers from outside the area? Some investors might see potential even if locals don’t.