Property owners in negative equity, who are facing rising rental deficits due to increases in taxes, rates, household charges, insurance and maintenance costs, should contact their lender to negotiate a monthly management fee to cope with costs, according to Clonmel businessman George Mordaunt, critically acclaimed author of Shepherd’s Pie and founder of counselling service Insight, which offers advice to those seeking to renegotiate bank debt.
“We are starting to see change within the banking sector. Lenders are now open to helping struggling individuals that are co-operating with them with their escalating costs to save them from bankruptcy.
“A number of our clients who control property portfolios have negotiated deals with their banks to retain 15% of their monthly repayments to assist with these rising costs.
“We are now advising all of our clients struggling with debt to apply to their banks for what is essentially a management fee to keep them afloat.” said George Mordaunt.
“Similar arrangements, albeit on a larger scale, originated within NAMA when it was considered more prudent to pay support to the property owner for managing their own portfolio than to appoint a receiver whose fees would be a far greater cost to the lender”.
If you are a landlord in negative equity and would like to discuss the best way forward, contact George Mordaunt on 052-6178713 or see www.georgemordaunt.com