Mortgage trapped due to repairs required

lmurray33

Hi, looking for some help or advice. Bought 1 bedroom flat at height of property boom for £78000. After about 5 years it was clear structural repairs were needed to building, made up of 9 flats. After years of struggling with fellow owners to agree on repairs it seems they are going to cost around £20000 each. We are desperate to sell the flat and move to a bigger house. However the flat is only valued at £30000 in current state and £50000 after repairs. This leaves us with a massive mortgage deficit, if the flat even sells at all. Do we have any option to get out of this, or is any help available? Views and ideas very welcome. Thank you.

worried_jim

Post the keys back to the bank. Go bankrupt if necessary and try to buy somewhere again in a few years. Sounds awful, but what other choice to you have.

lmurray33

Have you been through bankruptcy? Will they not take everything we have got??

WillyWonga

There is no way out to be blunt. The bank will not release their charge on the property unless they get £78k or so back even though its only worth a fraction of what its worth. They would not allow you to sell for say £30k and you promised to pay them £x a month.

With the repairs needed you have no choice. I would go bankrupt then restart again in a few years time. Put it down to bad experience.

lmurray33

How long does bankruptcy stay with you?

worried_jim

You are in Scotland so it's different but generally six years. But there are sub prime lenders that will lend to you but you'll need specialist advice. It's not the end of the world. Have you contacted Shelter for advice?

http://scotland.shelter.org.uk/get_advice

lmurray33

Some good advice on shelter. Thanks.