2 Properties with Pepper - 7 years left on loan

C

CapitalK

New Member
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5
Hi All,
Thanks for reading this
Im a non resident landlord and I have lived in the UK for 12 years now and have had 2 properties bought in 2006 in Dublin with a PTSB tracker 25 year term.
This loan has moved to Pepper now.
There was a clause in the contract that stated that they could demand interest and capital but never have - its always been interest only.
Currently the value of the 2 properties is 450k and 250k and the loan is 600k so not much equity - rent of 2250 for one and 1150 for the other - low rent rpz
The 1150 one market rent would be 1700 - I am thinking of leaving empty for 2 years refurbish lightly then let a friend stay there for a low cash amount
#

When the loan is up rent would be about 4600/month and value ?? 800k conservatively ??

What would mortgage options be for a non resident landlord ?

Many thanks
 
I mean options now for mortgage - I know landscape can and will change just planning ahead - do i refurb and sell / invest in UK or keep long term etc
Many thanks
 
You want to switch from Pepper to another lender - presumably for a lower interest rate.

Buy to let rates for Irish resident investors are very high, so there would be no point in switching.
They would also be capital and interest, so your repayments would be much higher - I am assuming you are interest-only at present.

So, in 7 years, you are going to need to refinance these loans. I think it will be very difficult for a non-resident to get such a loan, so you will be forced to sell.

If one of them is empty now, I would think it would be a good plan to sell it while you can. You don't want Pepper to appoint a Receiver in 7 years when you can't sell and you can't refinance.

SF has proposed that landlords who want to sell would have to sell with the tenants in situ. That would knock the value of your property by around 20%. I doubt that will happen, but it might and I would not take the chance. If your tenants leave, either property, sell it.
 
Thanks a lot Brendan some very good advice and what I was expecting - I didnt think there was much scope for non resident btl mortgages and potential disaster in 7 years as you have said above - Im a landlord in the UK and if I sell ill pay some cgt and re invest over here I think is a better plan.Thanks
 
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