Voluntary surrender of property

googlybear

Hi Guys,

Really after some advice on my situation.

I have been separated for over a year from my partner (other issues going on which are not relevant), but our mortgage is in joint names. Over the past year my solicitor has requested that my partner acknowledge her liability on the mortgage and other debts with no luck, as the debt is just increasing with each month that passes by. I have spoken to the bank many times and kept them informed with what has been happening but as you would expect they say that there is nothing that they can do to help me.

I have also spoken to CAB and Money Advice Service, but they all just keep saying "just keep paying, you don't want to get in to debt." With the bank, they look at the basic outgoings and determine I have enough left to pay the mortgage and that is all they are concerned with.

I eventually got through to someone in the head office who said they might be able to temporarily change the mortgage, providing my solicitor sent them a letter confirming that we had tried to sort things out with my ex. This was done, however just after my father passed away. Although this has nothing to do with my problems, my parents debts need sorting. Therefore I am looking at a voluntary surrender of my own property.

Now, I have two issues.

1. I know we are both liable, but how do I get the powers that be to somehow enforce this.

2. How do I get out of this situation without black listing myself?

3. Does a voluntary surrender require both signatures?

4. If I just stop paying and we are taken to court, will I be looked on more favourably due to trying to sort things out?

Thanks in advance.

The_J

Speak to the partner and say that you are probably going to have to stop paying the mortgage and get repossessed. This will affect her credit rating. She may never be able to buy another house and certainly not within the next 5 years. She will find it very difficult to borrow money and if she is able to it will be at a punishing rate.

Of course, all of that will happen to you too. That is what you have to prepare yourself for if you go down that route.

Yorkie1

I don't think a voluntary surrender will end the problem - you'll both still owe the money outstanding on the mortgage, and there will be the lender's costs in selling to be taken into account.

Will your ex agree to sell the place?

Condolences about your father - you really don't need those added pressures at the moment. However, I'm pretty sure that the debts he may have owed, are to be paid from his estate. And if his estate isn't big enough, it's not down to you to settle any balance owed.

googlybear

Thanks for your replies,

In response to The J; I have tried for over a year to speak to my ex partner with no success. If I see her in person, her response is simple: Speak to my solicitor and thats as far as I get. In sending requests through solicitors they are simply met with ignorance.

In response to Yorkie1; I possibly agree with you with the voluntary surrender, but I do not see any other choices I have. With each month that goes by, I get further in to debt (and although currently its not too bad) it will only get worse. As mentioned already in response to The J, I have tried this approach for near on a year with no luck. As for my parents debts, they have a lifetime mortgage which from what I understand despite my father passing, the mortgage carries on until my mother passes.

I am just after a simple way to end this problem without being punished for trying to sort it.

Hanky_Panky

googlybear wrote: »

Now, I have two issues.

1. I know we are both liable, but how do I get the powers that be to somehow enforce this.

2. How do I get out of this situation without black listing myself?

3. Does a voluntary surrender require both signatures?

4. If I just stop paying and we are taken to court, will I be looked on more favourably due to trying to sort things out?

Thanks in advance.

That's 4 issues ! But anyway:

1) You can't they're not interested in your personal problems with your ex. Entirely up to you to resolve I'm afraid.

2) You can't - even with a voluntary surrender which at least will stop you from getting a CCJ your credit file will be trashed for years.

3) I'm not sure - it may even vary from one lender to another. Regardless if this is the choice you make (not sure it's the right one) then I would write a letter to the lender explaining you are voluntarily surrending possession and enclose the keys etc. Don't make the mistake of trashing the place though as you will be liable for any shortfall that results from the sale.

4) no - none whatsoever.

It's unlcear from your posts whay you don't carry on paying the mortgage and try to sell the house first. If the CAB and Money Advice think you can pay why aren't you ? You may experience some problems from the ex to get the sale through however there are legal remedies for this. Why don't you pursue those first ?

I suspect - and my apologies if this is incorrect - that you feel you should only be paying half and that you are perhaps prioritising other payments ahead of your mortgage.

The_J

Do it through the solicitor. It will ruin her life and yours, make that abundantly clear.

If she doesn't care about that, then you're stuck.

googlybear

Thanks again for your response,

If you take the basics (what I earn and what the mortgage and loans come to) then yes on paper I can afford it. However with the work I do, I travel an awful lot around the country. this, with other bills, food, clothes for my son etc.. I no longer have enough and consequently the rest goes on credit cards.

I cannot sell the home, because I would need my partners approval, which as already mentioned she has not replied to. I have requested that we rent, but no reply either, I have asked if we can take her name off the mortgage and this too has been met with ignorance.

The bank is fully aware that I have been trying to sort this mess out, but everything has been met with "I cannot do this, I cannot do that without both parties consent"

Hanky_Panky

googlybear wrote: »

Thanks again for your response,

If you take the basics (what I earn and what the mortgage and loans come to) then yes on paper I can afford it. However with the work I do, I travel an awful lot around the country. this, with other bills, food, clothes for my son etc.. I no longer have enough and consequently the rest goes on credit cards.

I cannot sell the home, because I would need my partners approval, which as already mentioned she has not replied to. I have requested that we rent, but no reply either, I have asked if we can take her name off the mortgage and this too has been met with ignorance.

The bank is fully aware that I have been trying to sort this mess out, but everything has been met with "I cannot do this, I cannot do that without both parties consent"

What loans are you referring to - are they unsecured ? If this is the case then your priority has to be your mortgage first. Post a statement of affairs and we can give you some guidance.

Also - you can sell the house - it just takes more effort as there is a legal process you need to follow if your ex isn't co-operating. Speak to your solicitor about it. Again it is not the mortgage companies responsibility to sort this out for you.

googlybear

Hi Hanky Panky,

I am not sure what you mean by statement of affairs so would be grateful if you could give me a basic description. The loan is unsecured, the rest is just overdrafts on joint accounts.

pinkteapot

I think the main thing you need to understand and consider is that voluntary surrender is essentially the same as repossession, at least in terms of the impact on you.

The credit ratings of both you and your ex will be trashed. Neither of you will be able to get a mortgage for at least five years. The house will be sold by the bank. If it is sold for less than the mortgage balance owed, they will pursue both you and your ex for the shortfall.

Just want to be sure you understand that before you consider it as an otion any further.

Yorkie1

statement of affairs = list of income and outgoings. google "house of cards" and you'll find a template on there to fill in.