Can I hand keys back of 2nd property? Will I lose my Home?

amokach1

Hi,

We have a 2nd property (Rental Property) but cannot get a tenant. The property itself is in £30k negative equity.

If we 'walk away' from it, will the bank take our main property - our home?

The stress is killing us. We just can't afford two mortgages.

Please has anyone got any ideas??

Thanks.

harvey115

If you hand over your 2nd property to the bank, they will sell it as quickly as possible and you will be liable for the shortfalls including the costs of selling the property i.e.auction, admin fee etc. Also your credit history will be blown in to pieces.

I would suggest you call your lender and explain the situation, they might be able to give you sometime to sell the property (they might switch to interest only mortgage for a bit). Once you sell the property you will still be liable for the shortfall. However at least you will be possibly be able to sell it for better price then the bank.

Hope this helps.

DannyboyMidlands

Assming there is equity in the main house, why not:

Sell the main property and move into the rental one?

Sell both, pay off neg equity and buy or rent a new one?

getmore4less

Why can't you get a tenant?

Why can't you sell?

How much equity in your main house?

mortgages
Income


Problem is there is no such thing as hand the keys back they are yours.

You can default on the mortgage and go from there but the debt does not go away.

mynameistallulah

Identical thread a month ago, not sure what has changed since then?

https://forums.moneysavingexpert.com/discussion/comment/54204061#Comment_54204061