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settlement figure


oddjobbob
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My son foolishly bought a rental property about 9 years ago - I told him at the time the figures didn't add up, e.g. guaranteed rental income for 2 years (meaning it was too dear in the first place) £5000 cashback on the mortgage (ditto) and too dear for a new build in the area.

 

 

As predicted, once the 2 year 'guaranteed' rental income ended he couldn't find a tenant at anywhere near the required rent and eventually he fell behind on the mortgage and finally handed the keys back.

 

 

He now live in a jointly mortgaged property (the rental was his name only, the 'home' is joint husband / wife) which has a minimal amount of equity in it.

 

 

What it all boils down to now is that for the past 4 or 5 years the interest has been frozen on the £100,000 he owes on the rental property and he's paying a token £50 a month. Periodically he has to fill out an income / expenditure form, but the £50 stays the same.

 

 

There is very little the rental mortgage people can do as a) there is not much equity b) the family home is joint so any equity is half anyway (I guess?)

 

 

I am in a position to lend him some money and wondered what sort of figure they would be likely to accept in full and final settlement?

 

 

I have a figure in mind but wonder what others think...!

 

 

I would add that he works full time, etc and could just sit there forever paying the token £50 month but just wants this to go away!

 

 

The property in question has been resold since if this matters.

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