Bankruptcy and Negative Equity - HELP PLEASE

MEM62

owlet wrote: »

I honestly can't see the big deal about being on the property ladder once over 50 years old. Obviously, if you own your house and everything is ticking over nicely then it's great but when in negative equity and struggling, it's a big millstone. If it was me in that situation, I would hand the keys back and enjoy being debt free - but that's just my personal view!

Because once the mortgage is cleared it's cleared. Rent you will be paying forever. Thinking of retirement, rent adds additional financial demands on reduced income.
Bankruptcy will dictate that by the time OP will able to get another mortgage he is likely to be too old. Therefore, if he gives up this house he will not be in a position to buy another so it would make sense for him to hang onto it if possible. This is a big life decision.
Of course the OP has to make his own judgement call and if he has other reasons for letting it go then that may be the right choice for him.

Nasqueron

MEM62 wrote: »

Because once the mortgage is cleared it's cleared. Rent you will be paying forever. Thinking of retirement, rent adds additional financial demands on reduced income.

But add on repairs, maintenance, white goods, insurance etc

I can see the appeal of a paid off mortgage but the effects of the house owning obsession of the UK can be seen post crash as well as several times in history

MEM62

Nasqueron wrote: »

But add on repairs, maintenance, white goods, insurance etc
I can see the appeal of a paid off mortgage but the effects of the house owning obsession of the UK can be seen post crash as well as several times in history

Those costs are nowhere near what you would pay in rent but, of course, they have to be considered and paid for.
IMO The strong drive to own property in the UK comes from the fact that renting is expensive. It is not a cost that you can easily control and personally would worry me when facing retirement as most of us are not going to have huge pensions.
I travel to the continent regularly on business and I would guess that more than 60% of my European colleagues rent. The difference there is that rents are much cheaper compared to earnings so the cost is less of an issue. I arrange rental properties for my ex-pat colleagues in the UK and, without exception, the rent increases each year are above inflation.
Unless the rental market in the UK changes the 'obsession' as you put it with owning property is unlikely to change.

confusedinnottingham

These are all valid points and ones that go through my addled brain every night - I guess it comes down to my age - a new mortgage at 52 nearly ?? - is that even possible let alone adviseable
I am self employed so earnings can go up and down
Or keep buying lottery tickets and pray !!!!!
Even considered leaving the UK if it wasn't for my kids

alastairq

Do you feel able to work, doing your trade, after you are 70?

If so, then a mortgage is possible.

[I have many colleagues who..probably due to 'life changes', are having to do our job until past 70, to pay off their current mortgage. Happily, it is a job which easily knocks pushing trolleys in Tesco, into a cocked hat! ]

Gemzf89

Do you mind me asking who the mortgage provider is?, I ask because my partner has had the same problem as you for years, in that he handed e keys back to his house just a month before he went bankrupt, but the law changed a few months prior, this all happened in July 2011. But the law changed I think April 2011. Prior to this date a letter with signature handing the keys back was enuf, after this date a voluntary waiver notice needs to be signed. The clydesdlae failed in everyway with my partner, they wrote a letter saying they were back in possession and changed the locks and boarded it up, but it became apparent in sept 2013 that they have advised they never accepted the house back and they don't want it back, the mortgage was £240k and it's now worth about 50k because it's been left by them for 3 1/2 years. We got confirmation that any shortfall is covered, but the problem is the bank say there is no shortfall and that the mortgage stands because they won't take it back. We are tying to move on some 3 years after my partner was discharged, but cannot until we get this sorted. E ombudsman said we need to take the matter to courts but we cannot afford that. Never dealt with such a. Disgusting bank, my partners trustee and has said he's never heard of anything like this ever happening before it's been really draining us for years now, and we re on the verge of splitting aswel becaus the pressure has been so high and constant for so many years. He like you had his own business and was very successful but things slowed and the bank wouldn't help in anyway and just called in every debt and overdraft he had with them, we lost everything and with a 3 yr old aswel it's been so hard.