Hand back keys

nicklad

Could any one please tell me what happens personally if you hand the keys to a BTL back to the lender or indeed let it be repossessed????

abaxas

nicklad wrote: »

Could any one please tell me what happens personally if you hand the keys to a BTL back to the lender or indeed let it be repossessed????

Do you own any other property? Ie own home etc.

(also this thread is smelling a little AWOOGA!)

PasturesNew

They will sell it at auction. It won't achieve anywhere near the asking price and you will have no control over what it is sold for.

They will then pursue you mercilessly for years and years and years ... and years and years ... for the money.

If you have another house. Your home perhaps ... they can take that from you too.

There is nowhere to hide. No way out. You will owe them the money you borrowed and that's it. They will want it back. In full. PLUS charges, PLUS interest, PLUS penalties.

Your life will be ruined.

Lotus-eater

abaxas wrote: »

Do you own any other property? Ie own home etc.

(also this thread is smelling a little AWOOGA!)

Mmmm same as his other thread.
Maybe its me, but if this is real, then if you go into an investment without knowing what may happen, you are a fool. I am not a BTLer, but if I was, I would have looked into the details before I got into it.

mpsavuk

Nowhere to run, nowhere to hide.

Has "Jingle Mail" finally arrived in the UK?

teabelly

Contact your lender. See if there is anything they can do eg suspending mortgage payments while you find a buyer/renter that would help the situation in the short term.

What mortgage rate are you paying? Is there some way your current lender will let you refinance onto a better rate and move the negative equity onto a secured loan or personal loan? Best rates are with Birmingham midshires on a fixed at 5.1% Also make sure the early redemption charge isn't punitive if you remortgage and check out what it will be if you do redeem your current one.

If you can then move the secured loan onto a personal loan if you sell then you'd at least be free of the mortgage debt itself.

New build flats take ages to rent out or sell. Try offering extras with it eg broadband included, council tax included or other incentives just to get it let out.

As it is a 2 bed then you can at least do a multi let which would bring in a little more rent. How much did the rental agent say they could get for it?

loveandlight

Thank you teabelly for offering some constructive advice to the poster.

I have found this article on the payplan website. Might be worth reading also nicklad. Mortgage Shortfall | Debt Advice | Payplan

mlz1413

Back in the late 80's my ex-boyfriend bought a flat which then plummetted in value, he handed the keys back because he had paid for an Indemnity Insurance when he bought the flat, I know the year prior to that I had bought a house and the imdenity was compulsory I remember having to find yet another £200 to pay it.

Anyway when he handed flat back the indemnity policy covered any shortfall, because that is excatly what it is for, the bank insurancing themselves against you.

I haven't heard of this type of policy recently but it's get to be worth asking your lender if they made you pay for it with the initial mortgage.

moneysavinmonkey

mlz1413 wrote: »

Back in the late 80's my ex-boyfriend bought a flat which then plummetted in value, he handed the keys back because he had paid for an Indemnity Insurance when he bought the flat, I know the year prior to that I had bought a house and the imdenity was compulsory I remember having to find yet another £200 to pay it.

Anyway when he handed flat back the indemnity policy covered any shortfall, because that is excatly what it is for, the bank insurancing themselves against you.

I haven't heard of this type of policy recently but it's get to be worth asking your lender if they made you pay for it with the initial mortgage.

I think that's what the Higher Lending Charge (HLC) fee is nowadays.. what kind of mortgage do you have nicklad?

martinbuckley

PasturesNew wrote: »

They will sell it at auction. It won't achieve anywhere near the asking price and you will have no control over what it is sold for.

They will then pursue you mercilessly for years and years and years ... and years and years ... for the money.

If you have another house. Your home perhaps ... they can take that from you too.

There is nowhere to hide. No way out. You will owe them the money you borrowed and that's it. They will want it back. In full. PLUS charges, PLUS interest, PLUS penalties.

Your life will be ruined.

Unless of course you own Leeds Utd Football Club, when you can just tell the creditors to "shove it" and get on with business.

nicklad

Thanks for your constructive 20/20 hindsight comments.