Negative equity - is voluntary repossession and BR the solution?

silvercar

I've run out of patience with it all - so is voluntary redundancy and then bankruptcy my best/simplest option?

Hold off on the idea that you need to take redundancy. You don't, particularly if you are starting maternity leave soon.

If so, how should i do it? (Just stop paying the mortgage, then speak to mortgage company about voluntary reposession, then file for BR?)

That is the easiest way. Post the keys back to the lender and stop paying the mortgage. Don't sign anything.

Should I inform my ex partner about my plans? Seeing as he has had no interest at all in the property while I've been faultlessly paying the mortgage for the past seven years.

Yes. Tell him that you are not paying the mortgage anymore and are going to let the lender repossess. Warn him that the lender will also chase him for the shortfall. He may offer a solution or he may not.

Do I need my ex partner's consent/signature to start voluntary repossession?

You certainly don't need consent to not pay the mortgage. You shouldn't sign any acknowledgment of the debt anyway, so no consent needed.

Will my repossession/BR affect my CURRENT partner at all, and his equity? I've not really been contributing to his household expenses, just bits and bobs here and there.

No - provided you have no joint finances.

You really need advice. But if you decide that voluntary possession is the right way, that doesn't mean you must go bankrupt.

If you do decide that bankruptcy is the right decision for you, then it would be beneficial to time it for when you are on maternity leave, so you don;t have spare money that the OR could say you could contribute to your bankruptcy.

Emma1981

Thank you Silvercar - brought a bit of clarity. I will hopefully be getting some face-to-face professional advice this week. But at last I can see myself taking some sort of action for the first time in years... rather than just keeping my head in the sand, paying up and delaying the inevitable... wish I'd done something about it years ago... oh well

luvchocolate

Please do not pay for any advice use either stepchange or debtline.
Do not be afraid of B.R it was the only thing I could do in similar circumstances.
I wish I could talk to you!!!

TheGardener

Emma1981 wrote: »

... wish I'd done something about it years ago... oh well

A common sentiment from BR's. Certainly the only thing I regret was struggling on for so long before I took the inevitable decision.

BR does not 'cripple' people and certainly the 'cant pay, we'll take it away' TV shows are the worst possible source of info as the shows makers dramatise at the expense of accuracy. Accuracy is too boring for TV.

Get advice from one of the debt charities - Step Change or Debtline. BR, if planned properly is a clean break - a chance to restart and take control of your finances. One thing is clear - you can't carry on as you are.

Owain_Moneysaver

Emma1981 wrote: »

Will my repossession/BR affect my CURRENT partner at all,

It might do, especially if he works in the regulated part of financial services, police, or some professions.

If you could drop the price, sell the property, and 'only' be left with a £25k shortfall, there might be other options. If you're currently paying £700 a month and could keep doing that you could pay off the £25k in 3 years (ignoring interest). Could you use any equity in your partner's property as security for a £25k loan repaid over a few years?

warning your partner's home would be at risk if you did this.

Do you or your ex have any other assets? bankruptcy is really only useful to the creditors if there are funds somewhere they can seize. If you don't have assets but have some income it's in creditors' interest to agree a repayment plan. Even better if they would agree to accept half the shortfall from you and take a chance on getting the other half from the ex.

TheGardener

Owain_Moneysaver wrote: »

It might do, especially if he works in the regulated part of financial services, police, or some professions.

I would doubt this - the OP will be affected in these areas of course but there is no reason her partner (current, not the ex) should have any issues unless they too are planning to go BR. The restrictions of BR will not affect the OP's current partner - other than impacting on their credit rating if they have financial links like joint bank accounts.

The other obvious issue would be that the current partner would become solely responsible for the council tax during the year of the BR.

Do not accept, or get your current partner to accept - any responsibility for any shortfall! If you go BR then the mortgage and any other house related expenses will be your ex's problem.

jackyann

Definitely get advice from one of the organisations suggested above. Otherwise I have only one suggestion.
I hope you manage to sort it out before your baby is due (and you do need a period of calm at that point) - but if not, then do ask the mortgage company if you can take a 'holiday' during maternity leave. If you have paid your mortgage for 10 years with no problems, then they should agree to that.
Not a long term solution, but a temporary respite, so you can enjoy your baby.

somuchindebt

Wouldn't a holiday from mortgage payment just add interest to the bill?
Does your ex own a property? Would he be interested in some kind of deal when he takes the mortgage for the property and lives there and you give him £12.5 k if you are able to raise that kind of money? And of course if he is in a position to get a mortgage on his own etc...
Also, I don't know your situation but going bankrupt over £25k seems drastic.
Just another thought, have you spoken to the council that you are not living there? Is council tax still due? Not sure how much is service charge but £700 per month is a bit much for this kind of sum. Are you on a fixed deal? I know you said you couldn't remortgage but maybe speak to your bank about the interest rate? Is there any way go for a lower interest rate? Then renting out might turn into a small profit.