I have several BTL properties. On 5 of them the rent shortfalls mortgages by almost £900. I am looking to sell them to pay off additional debt (circa £90k) but finding it difficult in the present climate. I also have another 2 BTL's, but these are rented out to family members, with 15% on each protected (for the familty member) by a Declaration of Trust. If I enter into an IVA, what would happen to the 2 BTL's occupied by familty members? Also, my estimation is 5 BTL's worth circa £580k, mortgages on them total £550k, so there is equity, but not enough to repay the £90k owed. What would be the best way forward for me?
Being realistic, it is unlikely that there will be much or any equity left in the properties once they have sold - due to agents and legal costs, and ever growing shortfalls if you cannot service the payments.
How did the 15% interest in the other properties derive from? Did your relatives actually pay a deposit of 15%? If not, then this will be deemed as an asset of yours in the event of a subsequent bankruptcy or voluntary arrangement.
Your case is complex and will need special advice and handling. I suggest that you contact an insolvencu practitioner for an intitial chat about your options, to see what (if any) sensible offer can be made to your creditors, before they start looking to charging orders to secure their position.
