Has anything changed?

[Devils Advocate]

How long to run on tennants agreement on the rented house in UK?............surely it's on a 6 month/1year renewal agreement. Issue termination papers now for end of this period and sell house?
If situation is that desperate then he can sell house at sensible price without being greedy.
Would he do that or does he want it all ways?

Another thing, the excess £100 left over from the rent would surely cover a release of an extra £10000 which should see him through these tough times you're kindly trying to help him through.

Not wanting to be sniped at but you can throw every hard luck story and excuse at the problem but it's only serious action by the "victim" that will sort it.

DA

[Jool]

Its on a rolling tenancy and I understand he has to give two months notice........but how will he pay the mortgage in the meantime while there is no tenant and he has nowhere to live himself? He can only move back in to the house if the bank change mortgage back to a repayment one not a buy to let one............and you need to prove income for that, normally one year´s earnings in UK. Which bank will lend an extra 10k with no fees when there is no income to prove repayment? Ideal scenario is to move into his house once he has a job but its the now and in between time that is the problem.......can a single person get help with accomm and rent short term if genuinely seeking work in UK (british citizen) while he gets straight?

Houses in that area are not selling, and once vacated they are not renting out again........he does not want to jump out of the frying pan in to the fire........if he risks not paying the mortgage then he could lose that house as well as the one in Spain........so its not a case of being greedy just trying not to lose everything.

[Devils Advocate]

Jool, I think you mean well to this aquaintance of yours but can't help thinking you're wasting your time.
Every well meaning suggestion that may well work has an excuse for why it wouldn't.

Again, believing the situation is as dire as you say i stick by what I say. Get rid of the renters and sell the house. It's ok saying "but it won't sell".........in an auction it will, an auction timed so that further repayments are not needed

It won't fetch what your friend wants though probably...........is that the problem?, he cannot have it all ways Jool
At the end of the day does the guy want to help himself or is he looking for others to do it for him?

Cheers

DA

[Jool]

It would be a huge loss to sell it in an auction at age 52 as that is the pension fund, there is no private pension and all was timed so that rent would bring in income at age 65.......its not easy to find work at age 52..........so the fear, naturally, is destitution and serious financial struggle for ever more.....

[Bongtrees]

I know nothing about mortgages but assume you mean that it is 33% of the value of the property, if so there are loads of ads from big companies guaranteeing to buy properties at 30% below a RICS valuation in days.

The separation from partner was ill timed, where is that partner, what is he or she living and on what and if staying in Spain give them responsibility of the dogs.

Its not dire just unnecessarily complicated by these people refusing to accept reality, take what they can and move on, there is nothing more that anyone can really do or say, they have to do it themselves.

[hillybilly]

Well, they have to do something. Doing nothing is not an option.
Move back to the UK, stay with relative/friend for a couple of weeks, rent a cheap bedsit, give the tenants their 2 months notice, get a job, any job, move back in to their own house without telling the lender for now if need be and take in a lodger.
If they have genuine health problems maybe there is some financial/mobility help they might receive in that department?
There are charities and benevolent societies/funds of many kinds that exist in the UK eg illness related, profession related, trades union related, local area related...they might be eligible for a hardship loan of some sort if they investigate to help them get back on their feet.
p.s. have they actually spoken to their UK lender to suss out what their stance may be? If they were to fully explain their situation and maybe moot putting the house up for sale, the lender might be willing to bend the rules until the house is sold.

[Devils Advocate]

So we're getting somewhere now, the original post contained the statement below.

No savings left, literally nothing.

It turns out the guy does have capital to release to fund this crisis he's telling you about, yet won't use it as he doesn't think it's right for his long term future .incredible!!
If he doesn't want to use his own money to help himself why does he think anybody else would want to. I can't even see sympathy justified in this story let alone help.
Best advice is to get him to pull his socks up and get on with it as most people have to.
Please forgive me if I'm wrong here but it does smack of me,me,me,when there's a self funded solution to hand, don't understand this one to be honest Jool.


DA

[fincalospinos]

Jools - I read something recently in one of the Spanish daily papers, Malaga Hoy I think, that there is some help for self employed people who have been paying Autonomo.
In order to claim whatever is on offer, you need to show that your business has been in decline, by a certain percentage, over the last two quarters.
I cannot remember the exact figures, but suggest that you go to your local INSS or employment office for more information.
This is a new initiative bought in since the beginning of this year.

[Jool]

DA - I fully appreciate where you are coming from but to release capital from BTL mortgages costs money and there is none, not a bean........and no one able to lend to them, this is the problem HOW to release capital .........any ideas gratefully welcomed I´m sure as I don´t know how to do this, there is also equity in the spanish house but no one will release any more funds in these circumstances.........I´ll get him to look in to the new scheme and see if there is anything there......

Thanks for info re self employed, I had not heard about that.........my business has been declining so I may take that up myself!!

[Bongtrees]

this is the problem HOW to release capital .........any ideas gratefully welcomed.

I think everyone has replied with sensible advice and has shown remarkable restraint by not making personal remarks. But ignoring advice and keep coming back with the same old question about how can these people release capital when they dont even have a salary is testing my patience.

There is no way ANYONE is going to lend money to these people and as far as I know there is no money available to Autonomos either, so unless its a made up scenario or the people know how to live on thin air, they have to sell up, get what they can and start again, after all they are only 52. G-d only knows where we will all be by the time they are 65, I would be worrying where I was going to be in a week or a months time if I was them .

The only recent announcement regarding Autonomos (as far as I know) is that the government will allow Town Halls to come up with ideas or projects and pay Autonomos to work on them but of course this will never happen as Town Halls cant pay bills let alone pay salaries, its just another totally unworkable Zapatero crap announcement.

[silver]

You can sign on at unemployment office, but recieve no money..if female over 45..after a year of signing on every 3 months you would get 400€ odd per month for the next year... sometimes offers of paid training.. Town halls do dosh out money to the very poor..and a trip to your local church will get you info of where to eat free meals and where to go pick up some groseries to take home.
Good luck

[Retro P]

Perhaps there is no capital there, if a property has an average value of 150 grand and the outstanding mortgage is 150 grand theres no equity, unless we know the full facts AND figures we can't, even in a limited way, help, other than of course say what everyone else seems to think , get the finger out, stop whining and move on, you're a long time dead!

[Devils Advocate]

Jool wrote:
this is the problem HOW to release capital .........any ideas gratefully welcomed.





Jool I'm not talking borrowing more against the property, I'm talking selling it!!.........which the guy seems not willing to do as it affects his retiremet pot

I read it from your post he's got 66% equity in the house, so he sells the house and releases it...immediate crisis over

Posters with often varying views even seem all to agree that this chaps problems are sortable if he'd the inclination to do something about it

Every bit of "asked for" advice has been rejected as unworkable for some reason or another so I'd now be inclined to wash my hands of his problems if I were you........he wants a way out that is painless and cost free to himself.........It don't happen!

DA

[IreneD]

I can feel for the person you are trying to help, Jool, as that could well have been us. (Long story). Fortunately, we sold our house in England before we got into the terrible financial straits your friend is in. Our plans for the future did totally change, including our hopes for a retirement pot, (our U.K. 'residence' is now a caravan, and not a house as we'd hoped), but we have adapted.

Did he not see 'the writing on the wall'? We could see disaster looming, but as I say, were fortunate to sell our house. The worry is immense, and you are obviously a very kind-hearted person and doing your best to come up with a solution. His age is in his favour though - seems young to me - me and my OH are both pensioners, although still working till the Summer.

He has to bite the bullet and accept he will be considerably less well off than he'd hoped. The main pity seems to me to be that selling property may well be taken out of his hands now, if re-possession is a possibilty. Maybe he could talk to his lender(s), tell them he is selling up and perhaps they will give him time to do that himself, perhaps with a mortgage free period, when he will have a greater chance of getting more money? The lenders obviously will only be interested in covering the debt.

I do wish him well, though, as it's a horrible situation to be in.

[katy]

In these times the pension pot plan may have to be put to one side. I know quite a few people who have lost considerably on pension investments and ISAS's too.

I do find that many people here who are struggling here will not face up to the fact that they willhave to go back to the UK. Known a few myself and some have even resorted to sponging or asking for accommodation.

He will have to face up to the fact that there is no safety net. Of coure he could queue up at some charity kitchen. (great chance of seeing your face in the local paper, they are always printing them!). If not back to the UK that they may have been criticising for years, ans visit the Citizens Advice Bureau.

[Jool]

Bongtrees - I was trying to make that point to DA......as it is impossible, not ignoring what others have said at all

[Jool]

Thanks everyone, it does seem a strong reality check may be in order then, but age 52 seeking work in the UK is not easy - I have relatives in that same boat and better qualified than this chap..........but it seems to me the best bet is to actually physically get to the UK and take it from there.

[Devils Advocate]

Jool, you're a kind hearted lady and have done your best. The guy has no option to my mind other than to return and release money from his asset (i.e.sell it)

Before he bu ggers off though, could you ask him if he has a spare paella ring he doesn't need please?
Pool cleaner called me last week when he realised I'd left mine outside and it's gone all rusty in the winters rain

Thanks,
DA

[frog]

you shouldnt suggest this however sensible it seems,to many dogs abandoned by selfish brits over the years.

[Jool]

Absolutely agree with you Frog......and this (ex) couple are genuine dog lovers so its not an option for them........