A problem property portfolio was wreaking havoc with the peace of mind of a part-time landlady. She was certainly not enjoying the challenge. Having found us through Google, she got in touch and openly explained the difficulties she was facing. Sally’s first question was “Do we buy property portfolios“… our answer to which was of course “Yes“.
Having acquired four residential properties during the boom years, she was now struggling to cope and had reached breaking point, financially and emotionally. Good intentions and enthusiasm had proved insufficient to deal with the very real problems property can bring. Her situation had become serious.
Her desire and need to sell the property portfolio was blocked by a mix of negative equity, rent and mortgage arrears and the poor condition of her properties. Here is a brief overview of her situation when she came to us:
Problem Property 1:
Vacant and in substantial negative equity. Mortgage arrears meant the Lender was eager to repossess and the hearing was set for just a week away. A new boiler and some refurbishment was badly needed if there was to be any chance of attracting a long term tenant.
Problem Property 2:
This one was tenanted, but high service charge arrears had borne another court case.
Problem Property 3:
Vacant and neglected and sad.
Problem Property 4:
Tenanted but unloved and sporting serious rent arrears.
The investor was one step away from seeing her problem property portfolio push her over the edge. She faced losing property number 1, leaving a shortfall she would have no hope of covering and the unpleasant prospect of a forced bankruptcy. She was trying to carry a negative cashflow of £1,150 a month across just 4 properties.