Need Advice to Avoid Repossession

Munki2010

We have managed with difficulty to let out the property I used to live in before I got married and bought a family home. The area the property is in has had social problems in the last few years and as a result my property is in negative equity and people are reluctant to rent there. We simply cannot afford to pay both mortgages. What we really want to do is get rid of the place once and for all. We are currently on a trust deed, paying back our debts over three years. We need some advice to avoid the property being repossessed.

Fire_Fox

Welcome! Are you currently on consent to lease or did you go onto a BTL mortgage? Have you spoken to your lender, advised them that you are unable to pay, asked what options are available to you? Can you sell the property that is not in negative equity or release equity from that?

Munki2010

Fire_Fox wrote: »

Welcome! Are you currently on consent to lease or did you go onto a BTL mortgage? Have you spoken to your lender, advised them that you are unable to pay, asked what options are available to you? Can you sell the property that is not in negative equity or release equity from that?

We have consent to lease. I spoke to a representative of our lender earlier this evening. He was sympathetic but the only two options he presented was to either allow the house to be repossessed or arrange for a voluntary surrender. I got a quote from on of those "quick sell for cash" outfits and they estimated that they could offer £37,500-£42,500. That's £13,000-£15,000 shy of what we would need to pay off what remains. Selling our family home likely wouldn't even be an option even if we wanted to. There are homes exactly like ours around here that have been on the market for well over a year. Because we are on a trust deed I doubt we would be able to release equity.

Oh...and thanks for the welcome.

DannyboyMidlands

Why did you decide to rent out your previous property?

Munki2010

DannyboyMidlands wrote: »

Why did you decide to rent out your previous property?

Because we couldn't sell it. We tried.

Fire_Fox

Munki2010 wrote: »

We have consent to lease. I spoke to a representative of our lender earlier this evening. He was sympathetic but the only two options he presented was to either allow the house to be repossessed or arrange for a voluntary surrender. I got a quote from on of those "quick sell for cash" outfits and they estimated that they could offer £37,500-£42,500. That's £13,000-£15,000 shy of what we would need to pay off what remains. Selling our family home likely wouldn't even be an option even if we wanted to. There are homes exactly like ours around here that have been on the market for well over a year. Because we are on a trust deed I doubt we would be able to release equity.

Oh...and thanks for the welcome.

Anything sells at a realistic price. Have you researched land registry sold prices in the block, street and area for both properties? I appreciate it's not nice to think about selling the family home, but both of you going bankrupt is a very serious issue and affect you for life. Plenty of families have gone back to renting in this climate in order to pay off debts or because they had no equity. Sorry but I think you made a mistake buying a second property given your circumstances.