Voluntary surrender without bankruptcy

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zak74
zak74 Posts: 22 Forumite
First Anniversary Combo Breaker
in Bankruptcy & living with it
I own a flat that I have been renting out. It now needs a lot of wrk. Doing to it which I can’t afford. I only rent it out as due to negative equity I can’t sell it. I own a house with my husband so don’t want to go down bankruptcy route. Has anyone voluntary surrendered a property and paid off the balance outstanding?

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  • silvercar
    silvercar Posts: 46,965 Ambassador
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    Not uncommon.

    The lender may give you some time to get back on your feet and then will ask that you set up a repayment schedule to clear the negative equity.

    Have you approached the lender? Some offer assisted sales, whereby they help you to sell the property.
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • zak74
    zak74 Posts: 22 Forumite
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    silvercar wrote: »
    Not uncommon.

    The lender may give you some time to get back on your feet and then will ask that you set up a repayment schedule to clear the negative equity.

    Have you approached the lender? Some offer assisted sales, whereby they help you to sell the property.

    I haven’t yet. Do you think it’s best to speak to them first rather than just send keys back?
  • silvercar
    silvercar Posts: 46,965 Ambassador
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    zak74 wrote: »
    I haven’t yet. Do you think it’s best to speak to them first rather than just send keys back?

    Yes, they may offer a solution.
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • MEM62
    MEM62 Posts: 4,754 Forumite
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    zak74 wrote: »
    Do you think it’s best to speak to them first rather than just send keys back?

    Of course it is. That decision is what's called a 'no-brainer'.
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