House about to be repossessed.

Andrew_Ryan_89

Hi guys,

Just wondering if someone can help me with the below.

My mum took out an interest only mortgage some years back. The house has 4 bedrooms, 3 floors and is quite large. Worth at the very least £320k but she bought it for £50k or something way back then.

She has around £30k left on the mortgage and this had to be paid around 4 years ago. Now the bank has caught on a officially let her know there intention to sell to reposes the property.

The main problem is that it's a lease hold with around 70 years left. This has coincided with me having an offer accepted for my own place so there is little I can do to help out.

Because the debt is so minor compared to the assett, even with the short lease, I am pretty sure there is something we can do but I am not sure what.

Can anyone help? Please let me know if you need more details.

mrginge

What do you mean 'something we can do'

What you do is scrape together 30k from loans or a mortgage and pay off the debt.

... Or of course you sell the house and buy a slightly smaller one for 300k instead?

Mojisola

Andrew_Ryan_89 wrote: »

Worth at the very least £320k but she bought it for £50k or something way back then.

She has around £30k left on the mortgage and this had to be paid around 4 years ago.

mrginge wrote: »

of course you sell the house and buy a slightly smaller one for 300k instead?

Why didn't she put it on the market before the mortgage was due and pay off the loan? It would all have been under her control - now the bank will be taking charge.

libf

Andrew_Ryan_89 wrote: »

Hi guys,

Just wondering if someone can help me with the below.

My mum took out an interest only mortgage some years back. The house has 4 bedrooms, 3 floors and is quite large. Worth at the very least £320k but she bought it for £50k or something way back then.

She has around £30k left on the mortgage and this had to be paid around 4 years ago. Now the bank has caught on a officially let her know there intention to sell to reposes the property.

The main problem is that it's a lease hold with around 70 years left. This has coincided with me having an offer accepted for my own place so there is little I can do to help out.

Because the debt is so minor compared to the assett, even with the short lease, I am pretty sure there is something we can do but I am not sure what.

Can anyone help? Please let me know if you need more details.

Is your mum young enough and with enough income to get a repayment mortgage to cover the outstanding debt and lease extension?

Goldiegirl

I suspect that the bank will have tried many times to discuss this with your mother, and come to an arrangement for the repayment of the mortgage, and 4 years ago they would have generally been happy for your mum to clear the remaining mortgage over a period of time


The letter saying they'll repossess is a last resort from the bank, so it sounds as if they haven't been successful in their attempts to help your mother


Things are very different these days, with new affordability rules etc, so it won't be as easy now to resolve this.


She can sell the property and clear the mortgage


Raise funds to clear the mortgage


Try at this belated stage to make an agreement with the bank for the clearance of the mortgage over a period of time

silvercar

Goldiegirl wrote: »

She can sell the property and clear the mortgage


Raise funds to clear the mortgage


Try at this belated stage to make an agreement with the bank for the clearance of the mortgage over a period of time

This - many options. Sticking her head in the sand and hoping it will all go away isn't one of the options.