situation is that: the guy is on the way of repossesion.Court 2nd of august.
Outstanding mortgage £188,733...Areas at 1.6.2010- £6000..His mortgage payment came from £1000 to £600 a month,but he still cant pay..
House is newly refurbished ,extended kitchen,one of bedroom is ensuite shower..My estimation of MV £230000....
This is in LoNDON SE9(ELTHAM)...
WHAT CAN BE DONE TO SORT OUT SITUATION?
Will lease option work in this case?And how to propose it corectly?Also if you take over the mortgage will you pay £600 or it will jump back to £1000 a month?
Whatwill hapend after court hearing and what can be done to postpone the reposssesion?Any info is much apreciated....Thank you
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interested in 25%+ bmv deals

londonbuyer@live.com

Firstly, I will start by admitting I'm no expert on lease options but here's my advice for what it's worth. Deep, Hanif or any number of other members will be able to give you a far more comprensive answer.

Firstly, is the guy willing to just walk away so long as his debt is cleared? If so, that's the first part taken care of. If he wants some equity out then margins begin to get tighter. If your MV is correct, you're getting it around 18% below MV (but that's not taking into account the £6,000 arrears).

What rent can you get on the property and are you sure that it will let easily? Good bit of advice would be to advertise it before you buy and see what sort of a responsse you get. If you don't get any serious interest, might be worth thinking again.

Obviously you need the rent to cover the mortgage payments so look closely at the terms of the mortgage. If it's not on an interest only then you need to negotiate that with the lender at the same time you ask them for consent-to-let. That should bring down the payments down by around 30% (I think). As a rule of thumb, you should really make sure that you can afford repayments at an interest rate of 6%. Has the mortgage come out of it's fixed term. if not it may well jump up when it does. You need to see his mortgage offer which should contain the terms.

Other things to look out for are that the property has no other debts secured against it or that the vendor isn't about to go bankrupt. The more you can find out about his situation the better.

If you can get hold of a heads of terms (try Shimon's MS Law website) that might you get your thoughts in order.

The best way to delay the repossession is to talk to the lender and explain to them that you are able to help with the arrears. Don't mention lease options but just approach it from the angle that you are willing and able to sort out the situation. All they want is their money so they should at least listen to your proposal.

Like I said, I'm no expert but just thought I have a go at answering some of your questions so apologies for any inaccuracies.

Good luck

Rob West

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