Property Debt Consultation
Avail of your Free 1 hour consultation
Get an expert property debt consultation from Rescue My Properties. Are you a residential home owners or buy-to-let portfolio owners? Meet one to one with one of our consultants to better understand the following:
- Do you have a low loan to value & plenty of equity? We can assist with growing your portfolio.
- Do you have a loan to value which is higher than 50%? We would look at the risks the portfolio could face in a downturn or interest rate hike.
Rescue My Properties can assist property owners with the following:
- Mortgage arrears
- Negative equity
- Break-even ltv
- LPA receivership issues
- Suspended possession order
- Repossession hearing
- Aftermath of loss of properties to the bank
- Banks not following protocols when taking control of properties with potential of compensation
- Mis-sold properties with potential for compensation
There are many frequently asked questions from our clients in regards to the above issues. Please see below some of the most frequently asked questions:
I’m just looking for good property deals to increase my portfolio. How can I make a return from the Rescue My Properties?
At Rescue My Properties, we are client orientated. With our focus on creating solutions for clients we have a range of products which allow investors and property funds to take advantage of our multi faceted strategies. This process allows investors to purchase properties with up to 60% discount or for them to invest into property funds that acquire these distressed portfolios and offer a return and capital growth. We offer real growth with strategic action for expansion.
I’m sure I’ll be okay with my property portfolio as my cash-flows are positive?
Congratulations on having a well performing property portfolio. Property owners are always welcome to a one-hour free initial consultation with no obligation with Rescue My Properties. We will be pleased to advise how you can improve your cash flow and overall situation strength. Every property owner has the potential to either improve their portfolio. There is also always the opportunity to streamline and cut costs.
Rescue My Properties can improve your cash flow by offering 80% of rental incomes (as per the definition below) to our clients without the bother of the day-to-day management of the property portfolio.
To be clear on the strength of this Unique Selling Point (USP), please read the detail below.
Gross Rent = Total rent received from a property
Rental Income = Income after payments to lender
Net Rental Income = Net profit after all expenditures related to the property – such as repairs, council tax, management, etc.
For most landlords the cost of fully managing their properties is 12% of GROSS RENT.
The cost of repairs, maintenance (i.e. boiler replacements, roof repairs, miscellaneous), statutory costs (EPC, GSC, insurance, inventory, legal’s), service charges, ground rent, tenant find etc. on average amount to another 15-20% of GROSS RENT.
Here is a simplified example:
Rent = £1,000pcm
Mortgage – £600pcm
Management (12%) – £120
Maintenance + Other Expenses (18%) – £180
NORMAL LANDLORD CASH FLOW = £100pcm
Rather than paying approximately 30% of your GROSS RENT on maintenance, management and all property expenses, Management Consultants For You take 20% of RENTAL INCOME to manage all these costs.
Here is an example, with this 20% of rental income scheme applied:
Rent = £1,000pcm
Mortgage – £600pcm
RENTAL INCOME = £400pcm
Maintenance, management + expenses (20%) – £80pcm
CASH FLOW FROM Rescue My Properties = £320pcm
Cash flow under normal management = £100
Cash flow during Management Consultants
For You management = £320
Where more than 30% of the portfolio consists of properties with a service charge (flats), we will recalculate the percentage and advise accordingly.
Will signing up to the Rescue My Properties Programme affect my credit rating?
Our clients feel that losing their credit rating is dangerous. The irony is the harder you try the less control you have. An example is provided below:
Client A: Has a successful cleaning contracting business. The client has 40 properties which have been in negative cash flow because of the overall impact of fixed rate and SVR, where Client A has happily been putting in £11,000.00 per quarter for approximately two years. The net result being her credit file seems to be intact but she has accumulated approximately £150,000.00 of cash debt from business income, family loans and loans from friends, overdraft to keep her portfolio sustainable – in the hope that the property market recovers. Our aim is for credit to be kept, but at an expense – the underlying question is – how much money do you have to keep your credit intact?
Once it became unbearable because of her financial constraints she returned to Rescue My Properties. She realised all her hard work was equal to nothing. Her credit rating was declining because of default payments both on credit cards and mortgages. Twenty years of work with a net result of realising that ‘credit’ in this market does not mean anything after all! She was being handled by the financial system in the same way as anyone without a credit rating would be irrespective of her history.
Rescue My Properties Programme is not able to improve, change or correct the credit rating of their clients. A person can just as easily lose their credit rating within months of defaulting on their payments irrespective of the history of their payments and can just as easily amend their credit rating by paying promptly afterwards.
Equally so, clients are still finding raising finance difficult, because the lenders aren’t interested in lending. Credit rating in this market has already been lost by clients due to no fault of their own. The credit rating agencies have re-written the rules of their scoring, where unlike previously just secured borrowing was taken into account, now unsecured borrowing is also calculated. Consequently a person with properties is now seen as high risk. The net result is that you are probably scoring badly already – and for this purpose we strongly recommend you check your credit rating (i.e. with Experian or Equifax) report and check your credit rating if you have doubts on this issue.
How comprehensive is the Rescue My Properties programme in terms of the solutions it provides for property related problems?
The Rescue My Properties Programme is a turnkey solution for every aspect of property related problems.
We aim to help people through the emotional trauma of debt; through to relieving them from the burdens of running their properties, to negotiating with the lenders to dispose of their assets and potentially to remove clients debts. Between each phase the application of the solutions may vary but every possible scenario has a credible answer with Rescue My Properties.
What is the DRP61?
DRP61 is an in-house programme as part of Rescue My Properties that facilitates a solution for debt removal. This is not limited to mortgage debt and may extend to credit cards, loans and overdrafts.
Do you have any case studies? What is your track record?
We have case studies which are growing week on week. We have dealt with property clients with buy to let property and residential property ranging from one residential property looking for a solution to a client owning 46 units with an approximate value of £110 million.
I know of people suffering with their property issues, what do I do?
Anyone who may be suffering needs immediate help and support. If the person in question hesitates in coming to see a professional company then the best you can do is console them and give them some sincere advice. Once an individual accepts they need help, it would be advisable to direct them to us.
What are the common problems you encounter with your clients with property problems?
Accurate and complete information is important – Upon the transference of information to us, important items are sometimes omitted which therefore make managing the clients’ case difficult. We do ask in the initial engagement letter that all disclosures are made and failure to provide correct information could have an impact on how we perform.
I have creditors chasing me trying to make me bankrupt. Do you deal with managing creditors?
We have in-house consultants that deal with complex creditor situations and also work alongside top insolvency practitioners and law firms. Each case can be very different in nature. Hence, it will be imperative to meet one of our consultants to give them as much detail as possible before we can advise you on the best way forward.
What level of confidence do I have that my information will not be disclosed to anyone?
All our clients are signed up to Non-Disclosure Agreement (NDA) and we hold all their information in confidence
My properties are fairly highly geared and in positive cash-flow, does your Rescue My Properties solution allow me to come out with my properties intact?
Historically we have not encountered anyone in such a situation.
The nature of the Rescue My Properties and the type of clients coming to us are those in distress, therefore it is very rare that any individual properties are worth keeping. However, as we have to judge on a case-by-case basis, we will attempt to retain any assets that are worth salvaging.
In most cases clients are not sitting on good Loan To Value (LTV) properties, hence there is no real equity release on disposal.
We create a solution by negotiating with the lenders as this is the only avenue where negative equity can be turned in to a potential windfall. But, this only works in cases of disposal.
Property Debt Consultation – For Landlords with Some Distress Issues
I have already lost half of my properties. I have issues with bailiffs, council tax, credit cards and loans, mortgage arrears and overdrafts. Does Rescue My Properties help in these areas? Is it too late?
It is never too late as you will see. The Rescue My Properties programme is a comprehensive turnkey solution with answers to almost every problem within the property market. We can still help you with the problems you are facing. Sometimes simple things like helping to reduce the stresses and strains allow people to create clarity on how to deal with the lenders. The rule of thumb is that the earlier you come to us the higher the probability of reducing your stress, removing your debts and negotiating with the lenders.
How do I know that you won’t run off with all my distressed properties?
In this market properties have little or no equity. To compound matters there is limited availability of credible buyers. The majority of portfolios that are at an LTV of 70-90% will lose all if any equity at the time of sale.
Hence, there is no financial reason for anyone to run off with your properties. In fact it is the opposite; we are the leading solution provider for property.
Where does Rescue My Properties make its profits?
Rescue My Properties programme makes its fees by:
- Charging upfront fees per property for full consultation services where agreed or Fees against the programme where agreed
- Fixed fees for stopping repossession
- Asset Appraisal to analyse where your portfolio could have problems either now or in the future
- The reduction of monthly charges for properties
- Cost reduction in general
- Finder’s fee from potential investors on disposal
- Investor finance
- Yield return from investors money
- Commissions on debt removal
Property Debt Consultation – For Landlord with Major Debt Issues
What is it that you can do for my distressed property that my accountant or solicitor is unable to do?
We are business consultants hence, we have multiple disciplinary expertise in different areas to provide broader skills than an accountant or solicitor can provide. We have developed this unique and specific solution to the property market for over 3 years. With our affiliate organisations eg. www.Immediatebankclaims.co.uk, www.mc-4u.com, we can provide:
Immediately stopping repossessions
- Negotiating with lenders
- Write-off mortgage debt
- Restructuring debt
- Asset consolidation e.g. IVA/Bankruptcy/CVA
Do you have unsatisfied customers? Can I speak to your customers?
All our clients have signed Non-Disclosure Agreement (NDA’s) with us and their information is confidential. Although it is not uncommon for people to have differing opinions, we can confirm that at no point have we ever had any issues of malpractice.
If you want to contact one our customers we will ask some of them if they would like to speak to you for your reference but not insist. Many of our clients, because of distressed property issues, have suffered a major setback in their life, i.e. with tenants chasing for unprotected deposits, relocating homes to create a new life, relationship issues with their spouses and therefore, may not wish to give disclosure in a public forum.
Do you deal with IVA and bankruptcy/insolvency issues?
Through our service the option of bankruptcy and IVA can be discussed.