BTL properties- rent falls short of mge payments-help!

[ilya]

hi, all!

my first time in posting to this forum, so pls excuse any misbehaviour from me!

i have a problem that i am hoping somebody here may be able to help with.
and this may well be a warning to other would-be landlords, as if you cannot afford to have an emergency slush fund to bail out your rental properties when reqd, you shouldnt really get involved!

i have several properties rented out but due to the rental income coming in at odd times of every month, i am now faced with arrears on some of them, as i was relying on the rental to pay the mortgages.

i have one property which has around £25k to £30k equity in it and i am thinking of selling it to release the equity from it, so i can clear up the problems with my other mortgages.
but, this particular property is in a very good area and i can forsee its price increasing much higher in the long term.

so am i making the right decision in wanting to sell it off? i cannot try and remortgage it as i now have arrears from the other properties on my credit history and one application i tried for a remortgage was declined.

the only other choice i have is to try and raise a secured loan on this property, but that will have to be credit checked too!

i need around £15k to £20k to sort my problems out.
any ideas at all, pls?

[Ericthelobster]

so am i making the right decision in wanting to sell it off?

How can anybody advise you on that? Depends on far too many factors which will need to be weighed up, eg what will happen if you don't raise the cash you need; what other avenues you might have of raising said cash (apparently none?); whether the property will fetch a good price etc etc. Think you'll have to decide this one on your own...

[ilya]

thanks for trying to help, eric.
i know, it is kinda involved and rather difficult to see from someone else's viewpoint as to what can happen!
basically, if i dont raise the cash, my present problems with the arrears of my other properties will just remain, possibly get worse.
the only other method i have to raise cash is to go for an unsecured/secured loan on the property i am wanting to sell. problem is i have already tried a remortgage which was declined, and that wil now show on my credit record.
that property has around £30k equity in it.
worse case scenario is to sell it and get hold of the cash that way. ive had it for around 3 yrs now having bought it for £123k, and same properties in the street are selling for £165k.
if i had to sell it, i could always by in the same area again once my feet are more solid on the ground.

How can anybody advise you on that? Depends on far too many factors which will need to be weighed up, eg what will happen if you don't raise the cash you need; what other avenues you might have of raising said cash (apparently none?); whether the property will fetch a good price etc etc. Think you'll have to decide this one on your own...

[jeffrey]

What about finding a private investor who would lend (say) £30 000 in exchange for a percentage of the property's value on resale?

[Ruth Less]

If you want some creative ideas for financing try singingpig:

http://www.singingpig.co.uk/forums/

[Brit1234]

Interest rates are most likely going up 1/4 - 1/2% tomorrow with a possible further 1/4 later in the year. We don't know when the will come down again and could go higher. So I can see how a slush fund at the cost of one of your properties can tide you over the current period. You don't want to be constantly on the limit of your finances and knowing you have a slush fund will reduce the stress and give you peace of mind over the next couple of months. When things get better just reinvest in another property with whats left.