Can I give my flat back?

JoanneNY

Almost 13 years ago I bought a flat and got a 30 year mortgage. I have had the flat for sale for over 2 years. It is valued at approx 170k and my mortgage balance is around 105k but the housing market in the area is non existent - hence being for sale for so long.
I have moved and have another mortgage with my husband and the flat is empty.
My question is, is there any way I can waive the equity and just give my flat back to the bank?! I just can’t carry on paying 2 mortgages? Any tips gratefully received - its such a weight on my shoulders

elsien

What amount have you got it up for sale for?
If it's valued at 170 but you don't need that much to clear the balance, would it not be easier to drop the price just to shift it?
If you walk away you'll still be liable for any deficit after the bank's costs etc. have been added on.

JoanneNY

Thanks, it’s priced much less than 170k, just no interest or offers sadly.

McKneff

Rent it out ?

davidmcn

The bank won't be able to magically drum up any more interest than you can - you'd still be paying for the mortgage until they sell.

scholesfan88

Agreed with what has been said.

If you're prepared to hand it back, then stick it up for a few £k above what is needed to clear your mortgage or let it out.

muhandis

If you don't care about the price you get, just Google "sell my house fast" and there are plenty of firms which will offer to take it off your hands pronto, albeit at a *significant* discount.

Or else, explore the option of renting it out if you live within a reasonable distance. Out of interest, which part of the country is the flat in?

JoanneNY wrote: »

Almost 13 years ago I bought a flat and got a 30 year mortgage. I have had the flat for sale for over 2 years. It is valued at approx 170k and my mortgage balance is around 105k but the housing market in the area is non existent - hence being for sale for so long.
I have moved and have another mortgage with my husband and the flat is empty.
My question is, is there any way I can waive the equity and just give my flat back to the bank?! I just can’t carry on paying 2 mortgages? Any tips gratefully received - its such a weight on my shoulders

silvercar

I'm idly wondering what part of the country has seen no growth in 13 years.

That aside, why not auction it?

davidmcn

silvercar wrote: »

I'm idly wondering what part of the country has seen no growth in 13 years.

Quite a few places - or at least, types of properties. Lots of newbuilds around that time with ambitious prices (e.g. sold off-plan and eagerly snapped up by buyers who presumed prices would carry on going up).

ACG

If you hand it back it is classed as repossession.
If you are prepared to hand it back and risk getting stuck with a bill for any shortfall plus legal fees, you pay as well put it up for sale for £105k.

Clearly it is not worth £170k as there is no demand.

Or put it in an auction with a reserve of £105k and see what it goes for. If it gets a bid of £100k, you may deem it worthwhile taking a £5k hit.

AnotherJoe

ACG wrote: »

If you hand it back it is classed as repossession.
If you are prepared to hand it back and risk getting stuck with a bill for any shortfall plus legal fees, you pay as well put it up for sale for £105k.

Clearly it is not worth £170k as there is no demand.

Or put it in an auction with a reserve of £105k and see what it goes for. If it gets a bid of £100k, you may deem it worthwhile taking a £5k hit.

Put it in an auction with a reserve of £105k + the auction premium or you'll potentially be losing outside significantly . .