Repossession - visit from mortgage rep

Legacy_user

I'm about 6 months into my bankruptcy and so far it's been fairly smooth.

However the next phase of our journey is regarding my flat.

Basically, I want it repossessed. We really do need to to move for various reasons and we have zero chance of selling it, due to required renovations (no £) and the fact that the lease needs renewing which will cost at least £16k.

I just want rid of it, and the bankruptcy gives me the opportunity to do that with no financial clawback later.

So, Halifax have assigned a company called Ascent to complete a "field report" on the situation. We haven't paid any mortgage payments since December, except for a small part-payment in March.

Ascent have phoned me this afternoon and will be visiting me next week.

Bascially - my question is - what do I tell them? Do I simply be completely honest and just say we want out and want the property repossessed - or should I be keeping some info back.

The truth is we can't afford the mortgage so it's not like we're making this up. We'll be moving in with my Dad at least temporarily very soon.

Matts_Mum

Just as a matter of interest, how long is left on the current lease? It will have a bearing on its value and how marketable it will be.

System

About 50 years. It's too short now to be considered by mortgage companies.

A couple of similar properties in the same road have had the same problem and have ended up spending just over £16k to renew the lease before selling. It's just not an option for us and wouldn't be for a loooonnnngggg time. In the meantime, we have a life to live and desperately want out of this noisy, cramped place.

Matts_Mum

Yes, there is an issue. 99% of lenders will want at least 25 years on the lease beyond the term of the mortgage that someone will ask for to buy the property. One the remaining lease slips under 50 years the property will render it as suitable for a cash buyer only and its value will reduce significantly.

One thing you need to be careful of is stating that you 'want' to be reposessed. It could be regarded as 'intentionally' making yourself homeless and then requiring housing from the local authority at a later date. I know you say you will be moving in with a relative in the short term, but you may need social housing at some stage.

NeverAgain_2

Speaking to someone from the Halifax is probably harmless, but I wouldn't do it.

Do not, under any circumstances, sign anything.

Ultimately, it's up to the Halifax if/when they repossess, not you.

My advice would be to get on with your moving plans and leave them to it.

System

This is what's going to happen.

I'll let him in. Him only, no-one else.
He'll be directed to my office room (the lounge is a tip LOL)
I'll be videoing the whole thing. If he doesn't like it, he can leave.
I will not be showing him any other room (unless he needs the loo).
The first sign of any funny business, he'll be told to leave.
Absolutely no signing or anything.

No future appointments, no returns, zippo.

fermi

Perhaps if you want to cut it to a minimum, then write a letter setting out fully your position and give that to him saying that contains everything you have to say on the matter?

silvercar

Lenders are required to "treat customers fairly". That is a requirement of the ombudsman.

So visiting you is to ensure you understand that eg it is more important to pay your mortgage than pay credit cards.