10:52 AM, 16th February 2015, About 9 years ago 5
Looking for some advice on what’s best to do in our current situation. My mother has a BTL portfolio of seven houses, all have mortgages on except for her property which is worth around £300,000. She does not have any life insurance and has recently been diagnosed with cancer so I am planning for the future with my sister.
Around half the properties have equity and the other half have none or are slightly negative around £5,000-10,000.
Our current plan is to sell one of the properties which has a lot of equity and is difficult to maintain. Use the profit from this to heavily reduce the mortgages on two or pay them off. Then look to sell the others subsidising the sale price if it does not pay off the mortgages.
The issue I have with reducing the mortgages on all of them to keep them all is that my father borrowed 100% of the value on some of them in the days when you could overvalue property to draw out more money. If I had the option now I wouldn’t pay that amount of money for them and so the thought of putting in 20% to remortgage them seems like a waste of money.
I’m not sure if this is the best idea or do I still sell the property I had in mind and hold onto the money so that in the event of her death we remortgage as many houses as possible where equity is present and sell the ones that have no equity.
Realise I’m just going on and on now so would appreciate any advice possible.