Repayment of Buy to Let mortgages after husband’s death

At a one to one meeting they verbally gave me an extra 12 months but then when it got to 4 months they visited with a more senior employee and stated that I had 3 months to redeem or penalty interest would be added.

Reply to the comment left by "Ian Narbeth" at "15/07/2016 - 18:09":

You may be quite right of course Ian, Natalia won't know the answer to any of these questions for certain without asking her contact person at ME which is what I advised her to do. It's always best to know the worst.

Myself and my husband have just spent the past two years remortgaging properties individually after Yorkshire bank decided to ditch it's business lending to property businesses. We had the same problem regarding properties being jointly secured against all lending and having to negotiate peeling individual properties off. Ultimately they want their money back and in our case anyway they could see we had a plan, we had a deadline to work to & they worked with us to achieve it.

Unfortunately for us mid-way through the process our loans were sold on to Cerberus which was a mess, but we still managed to carry on as before, the only difference being we had to pay their legal fees for releasing the securities.

So I probably have more experience with this type of situation than many landlords. The worst deal we were able to strike was the first property we released thru Cerberus where they insisted on the full value of the first property to release it and the balance on the second remortgage. After that they were fine.

Other lenders may deal with things differently, but this was my experience which is all I can offer.

With regard to reading the facility letter, certainly in the case of Yorkshire Bank anyway, it was clearly spelled out in fairly plain English that any security held was security for any and all lending. Again this may well vary with other lenders.

Thank you all for your advices. I reduced the price of one of the ME flats which worries me the most and already got the phone calls from estate agencies for viewings. I am going to wait for couple of weeks and see if I get the offer on new price. If yes I most likely would be able to complete before December and pay off all 3 mortgages.
If not I will contact ME and see what they say and than act appropriately.

I would suggest that, you remortgage the properties in any case and assume worst case scenario that properties won't sell. However keep them on the market and do your utmost to sell them.

When you apply for remortgage, be sure that, your mortgage does not come with "Redemption Penalty" and your mortgage contract allows you to redeem your mortgage at any time. Your rate might be around 1% more expensive on average but when you compare, redemption penalty with 1% extra interest rate then latter is much cheaper and better option considering you are likely to redeem in next few months.

Furthermore as others have suggested that, there are lenders out there who will take rental income as a way of servicing the mortgage and will not ask for any other earned income.

Hope it helps.

Reply to the comment left by "Simon Hall" at "19/07/2016 - 08:49":

Already spoke to the broker who said there is no chance for me to remortgage even with my excellent credit rating.
If nothing happens by the middle of August I am going to borrow money from my friends and fully pay MW mortgage so it becomes my PRP.
Assuming the worst that I cannot sell others on time and ME wont be willing to give me more time to sell and re-possess them at least I can put my PRP on the market without MW breezing down my neck..

Reply to the comment left by "Natalia smith" at "19/07/2016 - 09:03":

Hi Natalia. What reason did they give?

I am not employed and the property I would re-mortgage doesnt generate enough rent. MW house doesnt generate any rent it all goes to repayment. Another on is under offer.

We have successfully remortgaged our Clients MX portfolio's over recent years. Some of them were partially remortgaged, and others fully remortgaged. More details how to contact us here > https://www.property118.com/member/?id=314

A little update for my situation. I sold one of the flats to the cash buyer in September (my debts with ME were consolidated) and I was about to complete on another one so I would be debts free and a position just to pay off the house. At the last moment the buyer solicitors find out that Freehold title for the flat does not refer to my late husband Leasehold title within the Schedule of Leases. When the issue was raised with the Management Company they said, “We believe that the lease should be registered against our client's title but it appears that an error was made at the time of our client's purchase 8 years ago.”
They wrote to the Land registry and received a letter from them stating, “the possible amendment to the register affects the schedule of leases. The nature of the potential change is to add the entry of the …flat registered under number….” And they added new worded lease.
The Management company view that the matter is being resolved since the buyer will not be purchasing the freehold title anyway and it shouldn’t affect the sale.
But the buyer solicitors insisting it has to be fully implemented before the sale.
The communication between my solicitors and myself has been very frustrating. I already spent almost £800 just answering different enquires, ordering management packs urgently, etc. So who is right? Do we have to wait or can we proceed with the sale? If there is anything I could do about it?
The problem is my deadline is 10th of December.
Thank you

Great news that you've completed on one sale Natalia!. Can you clarify what it is the buyers solicitor is wanting done? Is it something that needs registering/amending at HM Land Registry? Is it something they want the Management Company to do? Is there a reason it can't be done quickly?

I've had some really horrible issues with the new lender, (due to their solicitors advice) refusing to complete until a problem at Land Reg is fully rectified and registered/removed from the title with barely any time left on the mortgage offer. My solicitor has gotten on the phone with Land Reg and they've been absolutely great, turning things around, sometimes the same day.

Do you have an account manager appointed to you for your mortgage? Have you developed a relationship with them? I'd keep in discussions with them, so that they know the sale is at a late stage and that you are awaiting Land Reg to complete X action prior to completion and sound out whether there will be any action taken if the completion date falls outside the 10 Dec deadline. They may have some leeway to make recommendations based on the circumstances.

In any event though, I'd push your solicitor to find a resolution before the deadline. If necessary get on the phone to the other solicitor, find out exactly who needs to do what, and ring them yourself and spell out the urgency. Then keep ringing to see if they've done it yet! You are the one with everything to lose here, not them. Be the 'Squeeky Wheel'!

Best of luck!