Advice Needed

AllNancy

My daughter and husband are moving abroad. At present they are scraping by and cannot afford to pay the mortgage on their present home and with great reluctance intend to just walk away before the house is repossessed.

They also own a flat but the interest is very low so the mortgage payments are small and payable to another company. They can sell neither, despite trying.

Can the flat be taken as an asset by the first mortgage company?

SouthCoast

Have they taken advice from the FREE debt charities?

http://mortgagehelp.direct.gov.uk/default.aspx

Cannon_Fodder

It is not a great idea to let a Lender repossess. They will sell for less than you would sell privately, and still come for the shortfall PLUS costs/fees etc.

Drop the prices, sell both, use the equity (?) of the flat to cover shortfall on the house, avoid debt damaging their credit history.

A charge could be placed on another asset, yes.

I think I'm right in saying its 12 years for property debts to be pursued...so they better plan to be out of the country for a long time...

http://www.insolvencyhelpline.co.uk/debt_factsheets/liability_for_debts_and_the_limitation_act.php
"Mortgage shortfalls
If your mortgage lender is chasing you for a debt left over when your house was repossessed or sold the situation is rather different. Mortgage lenders have 12 years to pursue you rather than 6 years."

Leon_W

You can be made bankrupt for as little as £750 so if they persue it, then yes, I daresay the flat could be sold to repay other debts.