Personal and income details
Net (i.e. after tax) Income self: I receive about £4.300 net each month (I have lived in UK for last 3 years)
Income history: I am an IT contractor - when working, depending on contract, I can earn more than abocve. Above is probably my base.
Net income partner/spouse: No significant other
Income history:
number of children: I have no children
Amount of Mortgage Interest Supplement received : N/A
Home loan
Lender: I have no hoime as such. I rent in UK - and have 3 investment properties in Dublin. 2 are jointly owned with my sister - 1 owned solely by myself
Amount outstanding: N/A
Value of home: N/A
Interest rate: specify whether tracker or SVR or fixed rate
Monthly repayment
Amount in arrears
Investment property 1
Lender: AIB
Amount outstanding: €410,000
Value of home: €275,000
Interest rate: c. 3%
Monthly repayment : 1100 (Thsi is interest only)
Amount in arrears: €15,000
Monthly rent received 1200
Investment property 2
Lender: AIB
Amount outstanding: €230,000
Value of home: €180,000
Interest rate: c. 3%
Monthly repayment : 900 (This is interest only)
Amount in arrears: €0
Monthly rent received 1000
Note: THsi is jointly owned with my sister
Investment property 3
Lender: AIB
Amount outstanding: €357,000
Value of home: €180,000
Interest rate: c. 3%
Monthly repayment : 900 (This is interest only)
Amount in arrears: €0
Monthly rent received 1000
Note: THsi is jointly owned with my sister
Note there is the a further €102,000 remortgage which was secured across teh equity off a combination of all teh above along with some from another property owned soly by teh sister who jointly own 2 of the above properties with me.
Other loans and creditors -
Personal unsecured loan to AIB - €30000
The VAT man - c. €45k-€50k. I currently pay them back about €350 a month. (I reclaimed VAT on teh investment properties when I bought them origianlly meaning I must pay VAT on my rental income - have the above amount outstanding)
My now 77 year old Mother has signed as a guarantor for up to €100k at the time of taking out the mortgage. THis was just for teh property I own by myself.
Her financial situation:
She owns her home outright - worth c. €300k.
She owns a commercial property outright worth about €200k for which she receives monthly rent of €600 a month.
THere is a small holiday him, eqworth about €40k- 50k which is of enormous sentimental value to her.
She also has savings but dont know how much. Maybe €50,000 at a wild guess. She also receives a small pension.
Other savings and investments
€15k in cash
How important is retaining the family home to you?
I dont own a family home as such. I am a single 37 year old guy - I rent in Uk. And obnly own investment properties in Ireland.
Any other relevant information
What is your preferred realistic outcome?
Declaring Bankruptcy in UK - howver this has significant consequences for my Mother and sister. Would be the ideal solution only for that.
General Comments and summary
It looks like AIB have finally agreed to meet me proper(as opposed to going through teh branch which was takling forever).
In summary my situation is that it costs me €12k a year between all property associated expenses just to keep them goinmg - and thats while I'm only paying interest only.
Between what I owe teh VAT man and teh negative equity in property I reckon I am down about not far off €400k.
SO basically I am paying out €12k a year just to remain at €400k debt. I've realised this cant go on.
I live in UK and woudl go bankrupt - but as my MOther has acted as a guarantor for €100k for the property I owmyself (Investment property 1 above). She is 77 years old and obviously I dont want her invvolved at all in any way (She has compoletely forgotten she ever even signed as a guarantor)
The next issue is teh fact that as I co-own 2 of them with my sister, if I choose to go bankrupot, then my understanding is theyt woudl sell the properties and she would then owe any shortfall as I woudl be bankrupt.
So the above 2 reasons are why I belive bankruptcy in teh UK is unfortunately not an option for me.
Saying all of the above - I am between a rock and a hard place as obviously I can not continue what I am doing. I am self employed also as an IT contractor. I coudl easily have times ahead when I am not in employment anyway. Currently I am paying out €12k a year for teh privilege of remaining €400kj in debt !
SO what do I go to the bank with.
I suggested me and my sister swap our half shares so that we then owe one each outright - that would get her oput of the puicture. BUt I have been in topuch with the bank and it seem sunlikely they will agree.
When I meet teh bank next week (It is teh guys in tehmortgage lending department themselves I believ I am meetuing - yet to be confirmed) - what shoudl I try to negoitiate with them?
I've no idea at thsi stage what is a good outcome or bad outcome.
They already 'suggested' over email that I sell the properties and they woudl then set up a loan for teh residual debt - but for me that is c. €325k (excluding teh revenue) - I woudl never be able to pay that back either. (AT least by keeping onto the properties there is some chance of an uplift in prices to eat into teh deb over teh next decade or something)
Also - realistically how woudl they tackle the guarantee my Mother gave? I have outlined her financial situation above.
Ideally they woudl put a charge on teh home or something until her death meaning she woudl not be effected. Is it likely they woudl force her to sell tehy commercial property? SHe receives rent from this so they woudl be cutting off an incom,e stream.
Anyone any advice?
Net (i.e. after tax) Income self: I receive about £4.300 net each month (I have lived in UK for last 3 years)
Income history: I am an IT contractor - when working, depending on contract, I can earn more than abocve. Above is probably my base.
Net income partner/spouse: No significant other
Income history:
number of children: I have no children
Amount of Mortgage Interest Supplement received : N/A
Home loan
Lender: I have no hoime as such. I rent in UK - and have 3 investment properties in Dublin. 2 are jointly owned with my sister - 1 owned solely by myself
Amount outstanding: N/A
Value of home: N/A
Interest rate: specify whether tracker or SVR or fixed rate
Monthly repayment
Amount in arrears
Investment property 1
Lender: AIB
Amount outstanding: €410,000
Value of home: €275,000
Interest rate: c. 3%
Monthly repayment : 1100 (Thsi is interest only)
Amount in arrears: €15,000
Monthly rent received 1200
Investment property 2
Lender: AIB
Amount outstanding: €230,000
Value of home: €180,000
Interest rate: c. 3%
Monthly repayment : 900 (This is interest only)
Amount in arrears: €0
Monthly rent received 1000
Note: THsi is jointly owned with my sister
Investment property 3
Lender: AIB
Amount outstanding: €357,000
Value of home: €180,000
Interest rate: c. 3%
Monthly repayment : 900 (This is interest only)
Amount in arrears: €0
Monthly rent received 1000
Note: THsi is jointly owned with my sister
Note there is the a further €102,000 remortgage which was secured across teh equity off a combination of all teh above along with some from another property owned soly by teh sister who jointly own 2 of the above properties with me.
Other loans and creditors -
Personal unsecured loan to AIB - €30000
The VAT man - c. €45k-€50k. I currently pay them back about €350 a month. (I reclaimed VAT on teh investment properties when I bought them origianlly meaning I must pay VAT on my rental income - have the above amount outstanding)
My now 77 year old Mother has signed as a guarantor for up to €100k at the time of taking out the mortgage. THis was just for teh property I own by myself.
Her financial situation:
She owns her home outright - worth c. €300k.
She owns a commercial property outright worth about €200k for which she receives monthly rent of €600 a month.
THere is a small holiday him, eqworth about €40k- 50k which is of enormous sentimental value to her.
She also has savings but dont know how much. Maybe €50,000 at a wild guess. She also receives a small pension.
Other savings and investments
€15k in cash
How important is retaining the family home to you?
I dont own a family home as such. I am a single 37 year old guy - I rent in Uk. And obnly own investment properties in Ireland.
Any other relevant information
What is your preferred realistic outcome?
Declaring Bankruptcy in UK - howver this has significant consequences for my Mother and sister. Would be the ideal solution only for that.
General Comments and summary
It looks like AIB have finally agreed to meet me proper(as opposed to going through teh branch which was takling forever).
In summary my situation is that it costs me €12k a year between all property associated expenses just to keep them goinmg - and thats while I'm only paying interest only.
Between what I owe teh VAT man and teh negative equity in property I reckon I am down about not far off €400k.
SO basically I am paying out €12k a year just to remain at €400k debt. I've realised this cant go on.
I live in UK and woudl go bankrupt - but as my MOther has acted as a guarantor for €100k for the property I owmyself (Investment property 1 above). She is 77 years old and obviously I dont want her invvolved at all in any way (She has compoletely forgotten she ever even signed as a guarantor)
The next issue is teh fact that as I co-own 2 of them with my sister, if I choose to go bankrupot, then my understanding is theyt woudl sell the properties and she would then owe any shortfall as I woudl be bankrupt.
So the above 2 reasons are why I belive bankruptcy in teh UK is unfortunately not an option for me.
Saying all of the above - I am between a rock and a hard place as obviously I can not continue what I am doing. I am self employed also as an IT contractor. I coudl easily have times ahead when I am not in employment anyway. Currently I am paying out €12k a year for teh privilege of remaining €400kj in debt !
SO what do I go to the bank with.
I suggested me and my sister swap our half shares so that we then owe one each outright - that would get her oput of the puicture. BUt I have been in topuch with the bank and it seem sunlikely they will agree.
When I meet teh bank next week (It is teh guys in tehmortgage lending department themselves I believ I am meetuing - yet to be confirmed) - what shoudl I try to negoitiate with them?
I've no idea at thsi stage what is a good outcome or bad outcome.
They already 'suggested' over email that I sell the properties and they woudl then set up a loan for teh residual debt - but for me that is c. €325k (excluding teh revenue) - I woudl never be able to pay that back either. (AT least by keeping onto the properties there is some chance of an uplift in prices to eat into teh deb over teh next decade or something)
Also - realistically how woudl they tackle the guarantee my Mother gave? I have outlined her financial situation above.
Ideally they woudl put a charge on teh home or something until her death meaning she woudl not be effected. Is it likely they woudl force her to sell tehy commercial property? SHe receives rent from this so they woudl be cutting off an incom,e stream.
Anyone any advice?